RI govt sets five measures to deal with fuel consumption

RI govt sets five measures to deal with fuel consumption

Jero Wacik. (ANTARA/Andika Wahyu)

"We will also encourage it to use solar power."
Jakarta (ANTARA) - The Indonesian government has prepared five alternative policies to prevent the swelling of subsidized fuel consumption from the quota after it has cancelled its plan to limit subsidized fuel consumption by private vehicles.

Indonesian Energy and Mineral Resources Minister Jero Wacik said that he would issue a ministerial decree on how to control subsidized fuel consumption.

"Chief Economic Minister Hatta Rajasa and I have met the president to discuss measures to control and save fuel, especially in maintaining the 40 million kiloliters subsidized fuel quota in 2012," he said here Friday.

There are five measures which needed to be taken to reduce fuel consumption, he said.

The first measure is restricting the use of subsidized fuels for cars belonging to government offices, according to a ministerial decree which had been approved by the president.

"It will be carried out in stages throughout the Indonesian regions, so that consumption of subsidized fuel can be reduced," Jero said.

The second way is restricting its use on cars used in mining and plantation. These cars are not allowed to use subsidized diesel fuel because state-owned oil/gas company Pertamina has already provided fuel exclusively for mining and plantation.

The third way is oil-to-gas conversion.

The fourth way is banning state-owned electricity company PLN to build new oil powered electricity plants. PLN must set up plants powered by coal, natural gas, geothermal or solar energy.

"So the company must switch to alternative energy or renewable energy sources for its power plants. We will also encourage it to use solar power in an effort to save fuel," he said.

The fifth way is, the minister said, saving the use of electricity and water in government buildings.

The government`s effort to restrict subsidized fuel consumption is an urgent matter because by the end of April 2012, up to 14.1 million kiloliters has been distributed to the public, which are 7.4 percent higher than the quota.

State oil and gas company PT Pertamina estimated it has allocated 13.2 million kiloliters in the first four months of 2012 and has a target to allocate 40 million kiloliters in 2012.

"Compared to the same period in the previous year the realization of subsidized fuel distribution has reached above 10 percent," said Pertamina`s spokesperson Mochamad Harun.

On April 30, 2012, the distribution of subsidized fuel reached 8.9 million kiloliters or 110 percent exceeding the 8.1 million kiloliter quota.

Meanwhile as many as 4.9 million kiloliters subsidized diesel oil or 107 percent of Pertamina`s quota in the 2012 state budget amounting to 4.6 million kiloliters for the current period has also been distributed.

Pertamina reported a decrease in kerosene distribution with its conversion program to LPG which only reached 410 thousand kiloliters or 73.1 percent of the quota.

Besides, 23 of the 33 Indonesian provinces also reported to have experienced an over quota with the average distribution reaching 107 percent.

Even in areas that have the largest quota of subsidized fuel, Pertamina recorded realization of distribution at the average of 113.2 percent or 13.2 percent higher, namely in North Sumatra, Jakarta, Banten, West Java, Central Java and East Java.

Distribution in Jakarta and West Java is the highest one in exceeding the quota, reaching respectively 128 percent and 116 percent. Premium gasoline type is the most fuel exceeding its quota in both regions.

"The distribution of premium in Jakarta and West Java respectively reached 136 percent and 119 percent of the quota," he said.