"The policy will only benefit foreign companies and conversion kit importers," the secretary of the Indonesian Democratic Party of Struggle (PDIP) faction in the House of Representatives (DPR), Bambang Wuryanto, said here on Monday.
The policy would no doubt harm the interests of the community, gasoline station owners and state oil and gas company Pertamina, he said.
If subsidized premium gasoline consumption was limited and the public switched to non-subsidized pertamax gasoline, Pertamina must compete with foreign oil companies which sold pertamax at lower price, he said.
He said Pertamina`s refineries currently produced 600-650 thousand barrels of premium per day. "If premium consumption is limited how will be the refineries because they cannot be converted to produce pertamax," he said.
The policy would also burden gasoline station owners because they had to install more pertamax gasoline pumps, he said.
He said the PDIP faction was firmly opposed to the policy on the ground it would harm the general public.
Instead of limiting the use of premium, the government would better raise its price by Rp1,000 a litter, he said. (*)
Editor: Kunto Wibisono
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