Therefore, the use of subsidized fuel should not miss the target and the diversification of energy should be encouraged in order to retain the fuel subsidy target of Rp137.4 trillion in the revised 2012 state budget, he said at a press conference at the Coordinating Ministry for Economic Affairs here on Monday.
"We will safeguard and control the use of subsidized fuel so that it`s used in an orderly manner. We will also try to restrict and control the use of subsidized fuel and encourage the use of alternative energy," he said.
If the fuel subsidy needed to be increased, the government would use Rp30.6 trillion in funds originally planned for compensation for the poor in the event of the fuel price hike, he added.
"If the fuel price is not raised, we can reallocate the compensation fund amounting to Rp30.6 trillion (for fuel subsidy)," he noted.
He also said that if the price of subsidized fuel is not raised, subsidized fuel consumption might exceed the quota of 40 million kiloliters as a result of illegal hoarding and smuggling.
"We ask 520 regional governments (across the country) to make the effort to prevent people from hoarding and smuggling fuel. We must uphold the law," he said.
However, if the use of subsidized fuel cannot be controlled, global crude prices continue to increase, and budget allocations for fuel subsidies exceed the target, then the government is likely to submit another draft revision of the 2012 state budget to the House of Representatives, he said.
"We must be vigilant, in the sense that we have room to submit another draft revision of the state budget to the House, if the situation demands it," Agus said.
(Uu.S012/INE/KR-BSR/A014)
Editor: Priyambodo RH
Copyright © ANTARA 2012
