Teuku Riefky said the government`s could go ahead with its scedule for April 1, 2012 based on Law 22 / 2011 on the 2012 state budget.
Jakarta (ANTARA News) - House of Representatives (DPR)`s Commission VII on energy affairs called on the government to reassess and redraft its plan to limit subsidized fuel consumption beginning on April 1, 2012.

The commission made the request here on Monday at a working meeting with Energy and Mineral Resources Minister Jero Wacik to discuss the government`s plan to launch the subsidized fuels consumption limitation plan.

The commission`s working meeting with the minister was chaired by its Chairman Teuku Riefky Harsya.

Teuku Riefky said the government`s could go ahead with its scedule for April 1, 2012 based on Law 22 / 2011 on the 2012 state budget.

"We are of the view that (we cannot opt for fuel price hikes because) raising the fuel oil price is against the law," he said.

He said the Commission was of the view that the government needed to reassess its plan after hearing exposes from the energy minister and from other stakeholders such as BPH Migas (oil and gas regulator), PT Pertamina, Hiswana Migas, Indonesian Chamber of Commerce and Industry (Kadin), Apindo, Gaikindo, representatives of small businesses (UKM) and energy experts.

"We heard from the stakeholders that it would be too expensive and unjust for private four-wheel vehicles to switch from premium gasoline to pertamax," he said.

In the meantime, the fuel-to-gas conversion plan would require a process that was too complex where it needed an assessment on the amount of subsidy on premium sales. Besides, there was also a proposal that the state budget law be revised and a consideration on the possibility of a group of people taking the case to the Constitution Court for a judicial review while at the same the Indonesian Democratic Party of Struggle had also provided an input that a Perppu (regulation in lieu of law) could be used with regard to the revision of the state budget law.

Riefky said the reassessment the Commission was asking the government to do included acceleration of infrastructure development such as refineries, storage tanks, tank trucks, filling stations and incentive policies.

"We also asked the government to make an integrated plan on the acceleration of fuel-to-gas conversion which includes matters on gas allocations, pipeline network, gas filling stations and converter kit," he said.(*)

Editor: Heru Purwanto
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