Jakarta (ANTARA News) - The House of Representatives (DPR) and the government have agreed to set the quota of subsidized fuel oils for 2012 at 40 million kiloliters.

The agreement reached at a working meeting between the House Commission VII and ad interim Energy and Mineral Resources Minister Hatta Rajasa, who is also the coordinating minister for economic affairs on Thursday, fulfilled the government`s proposal in the financial notes of the draft 2012 state budget.

At the meeting aimed at discussing macro assumptions in the draft 2012 state budget, the House and the government also agreed to set the distribution cost and margin of subsidized fuel oils at Rp613.9 a liter.

At the same meeting earlier in the day the DPR and the government also agreed to set the Indonesian crude price (ICP) at US$90 a barrel and the lifting of crude oil at 950,000 barrels per day.

Daryatmo of the Indonesian Democratic Party of Struggle (PDIP) faction in the DPR said the party proposed the quota of subsidized fuel oils for 2012 at 43.5 million kiloliters of which 2.5 million kiloliters would be earmarked for fishermen and the margin of subsidized fuel oils at Rp800 per liter.

"We have profoundly discussed the assumptions," he said.

Dito Ganinduto of the Golkar faction asked the government to meet the quota of subsidized fuel oils at 40 million kiloliters consistently.

"We don`t want to see any further increase in the quota of subsidized fuels in the revised state budget as what happened in the previous years," he said.

Meanwhile, Nur Yasin of the National Awakening Party (PKB) faction asked the government to reduce leakage in the distribution of subsidized fuels.

"The government must also increase the use of gas fuels to reduce fuel oil consumption. It is regrettable the diversification program which has been introduced for a long time has made no significant progress," he said.

Hatta said the government was prepared to meet the quota of subsidized fuel oils at 40 million kiloliters for 2012 by implementing a control program.

The government would involve regional governments to ensure that fuel oil consumption next year would accord with the quota.
(T.K007/S012/H-NG/F001)

Editor: Priyambodo RH
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