The move is expected to save Rp500 billion to Rp600 billion in state budget funds, said Marshal Agus Barnas, chief of social analysis sub-team tasked with familiarizing the public with a plan to phase out the use of subsidized fuels.
Agus Barnas who is also deputy VII to the coordinating minister for political, legal and security affairs is in Bengkulu to get first hand inputs from the public about the plan.
The government will discuss the inputs from various regions including Bengkulu province with the central monitoring team to find the proper time to phase out subsidized fuels, he said.
President Susilo Bambang Yudhoyono launched an energy and water retrenchment movement nationwide on May 29, 2012. The movement is designed to increase energy security and maintain national economic growth.
To ensure the success of the energy retrenchment program, the government gradually bans cars owned by the government, state-owned companies and regional government-owned companies from using subsidized gasoline in Java and Bali.
Additionally, it also has launched an oil-to-gas conversion program and banned trucks owned by state plantation and mining companies from consuming subsidized diesel oil.
The government also bans state power utilities Perusahaan Listrik Negara (PLN) from using fuel oil to operate its new power plants. Instead, it encourages PLN to use solar energy, coal, natural gas, geothermal energy, and biogas.
(Uu.S012/B003)
Editor: Priyambodo RH
Copyright © ANTARA 2012
