| Subsidized fuel line has been setting Roadmap |
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| Friday, 14 January 2011 09:25 | |||||||
Page 1 of 2 JAKARTA. Oil and Gas Director General of Energy and Mineral Resources Ministry, Evita H Legowo revealed, which subsidized fuel settings will be applied in stages starting April 2011 had previously been stated in the Fuel Subsidy Reduction Roadmap established since 2004.
"So do not correct the assumption that the arrangement of subsidized fuel is because the pressure of foreign gas stations, because in 2004 we are not familiar with foreign gas stations," said Director General of Gas delivered at a Press Conference at the Ministry of Communications and Informatics Jakarta (30/12) last. Oil and Gas Director General said, the increase in fuel subsidies from year to year is very significant, even the fuel subsidy in 2010 reached 181% of the subsidy in 2009 or an increase of almost two-fold. Over the last five years, the Government has issued a fuel subsidy by Rp 413.2 trillion (2006: USD 64.2 T; 2007: USD 83.8 T; 2008: USD 139.1 T; 2009: USD 45.0 T; 2010 : Rp 81.1 T). Therefore, the Government needs to make regulatory policy which subsidized fuel more targeted and equitable so that in addition to reducing the budget burden of fuel subsidies could also make the Indonesian community in using energy more wisely. According to Director General of Oil and Gas, this is in conformity with relevant government plans fuel. In the year 2009-2010 is the test phase fuel distribution in a closed setting. "Previously, BPH Migas has tested fuel use Control Card in Bintan Island and the Directorate General of Oil and Gas has conducted closed trials of LPG distribution in Malang," said Director General. Furthermore, information director general, the Road Map mentioned that in the year 2011-2014 is the test phase a closed distribution system in stages. "This is our policy to be implemented in stages from April 2011 with the Greater Jakarta area as a pilot project", said Director General of Oil and Gas. In addition to the amount of subsidized fuel, used as a pilot project considering Jabodetabek Greater Jakarta area is the most prepared in terms of infrastructure. Of the total users of subsidized fuel in Indonesia, the Greater Jakarta area consumes 18% of national consumption of premium. Over the last five years (2006-2010), the consumption of subsidized fuel in Indonesia reached 191.3 million, KL (2006: 37.4 million KL; 2007: 38.6 million KL; 2008: 39.2 million KL; 2009: 37, 7 million KL; 2010: 38.4 million KL). Judging from the types of subsidized fuel, premium absorb 60% (23.1 million KL) of the total estimated realization of subsidized fuel KL 2010 amounted to 38.4 million. If we see from users of subsidized fuel, the land transport sector uses 89% (32.5 million KL), while 6% of households, fishing 3%, 1% of small businesses, and transport water 1%. If we see more detail, on their own ground transportation sector consumption of premium which is dominated by private cars by 53% (13.3 million KL), whereas 40% of motorcycle, car goods 4%, and the general 3%. Of the total users of subsidized fuel in Indonesia, then the distribution is the Java-Bali consumes the largest portion of which is 59%, with details Jabodetabek 30% (equal to 18% of national consumption of premium).
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