"So, Pertamina (state-owned oil and gas firm) will bail it out first in 2012 which will be paid later through the 2013 revised state budget," Deputy Minister for Energy and Mineral Resources Rudi Rubiandini said.
Jakarta (ANTARA News) - Deputy Minister for Energy and Mineral Resources Rudi Rubiandini said additional subsidized fuel of 1.2 million kiloliters for 2012 will be included in the 2013 revised budget.

"So, Pertamina (state-owned oil and gas firm) will bail it out first in 2012 which will be paid later through the 2013 revised state budget," the deputy minister said here on Thursday.

He said that in technical term, the ministry of finance would only provide a budget for financing of 43.5 million kiloliters subsidized fuels in 2012.

The budget for the remaining 540 thousand kiloliters -- to make it 44.04 million kiloliters-- will be taken from other allocations, he said.

In the meantime, the budget for another remaining of 1.2 million kiloliters will be included in the 2013 revised state budget.

However, Rudi said, the government would ask for the approval of the House of Representatives (DPR)`s Commission VII on energy affairs for the additional 1.2 million kiloliter quota for 2012.

"The most important thing is that the House should approve it in the first place. Regarding money, it could be handled by the finance ministry," he said.

Rudi said the government hoped that the House could give its approval before its recess period in mid December 2012.

He also said that the government was also planning to ask for additional subsidized fuel quota for 2013 in the 2013 revised budget.

In the 2013 state budget, the quota of subsidized fuels was set at 46.02 million kiloliters. "But we predict that it could reach 48 million kiloliters," he said.

He said that the government would also try to cut subsidized fuel consumption in 2013 by introducing gas fuel conversion, conducting retrenchment and raising prices.

"If the three programs could be implemented, consumption could be cut below 48 million kiloliters yet it would surely above 46 million kiloliters," he said.

Under the 2012 state budget, the government has set the quota of subsidized fuels at 40 million kiloliters. But because of rising consumption, the quota has been raised to 44.04 million kiloliters in the revised 2012 state budget.

Yet an upward trend in subsidized fuel consumption has led to oil officials predicting that oil consumption would reach 45.373 million kiloliters at the end of 2012.

In an effort to prevent the consumption from exceeding the quota, the government is tightening subsidized fuel consumption by taking a number of measures, including limiting fuel consumption by certain vehicles, launching a subsidized fuel-free day and introducing a new payment system.

However, the government`s step to implement rationing of subsidized premium gas consumption has sparked social unrest in certain regions.

Therefore, state-owned oil and gas company PT Pertamina has temporarily stopped the rationing of subsidized fuel in several regions across the country in an effort to maintain national security, according to the company`s marketing director, Hanung Budya Yuktanta.

"The board of directors made the decision in order to help maintain law and order and prevent horizontal conflict across Indonesia," he said here on Monday.

Yuktanta noted that the rationing of subsidized fuel "led to long queues in various parts of the country, which could potentially create horizontal conflicts, like the one in Kutai Barat district in Kalimantan recently".(*)

Editor: Heru Purwanto
Copyright © ANTARA 2012