President Susilo Bambang Yudhoyono announced five new policies on Tuesday aimed at reducing government expenditures on subsidized fuel, including limiting its sale to certain types of customers and using an IT system to monitor its consumption.
Yudhoyono said the government would control subsidized fuel sales through “advanced information technology.”
“We will electronically record ownership and physical data of each vehicle,” Yudhoyono said at a press conference at the Presidential Palace in Jakarta. “Every time the vehicle purchases fuel, the amount of subsidized fuel purchased will be recorded automatically, and we’ll know how much [subsidized fuel] each person purchases every day.
“This measure will guarantee transparent and accountable control of subsidized fuel consumption, and make it well-targeted.”
The president did not say exactly how the IT system would work, nor explain the time frame for the implementation. He also did not mention how the government would deal with results of the recorded individual fuel purchases.
The president also announced four other policies, which had been drafted since the House of Representatives rejected the government’s proposal to raise subsidized fuel prices starting on April 1, following an increase in global oil prices.
The second policy, he said, was a ban on officials and employees of state enterprises from using subsidized fuel for state-owned vehicles they use.
The third was a similar ban for vehicles used by plantation and mining companies. Special stickers will be attached on those vehicles signifying that they can’t buy subsidized fuel.
Yudhoyono said oil and gas regulator BPH Migas would work with law enforcers and regional governments to supervise the implementation of the sticker policy.
“[State oil and gas firm] Pertamina will build more gas stations that sell non-subsidized fuel to meet the needs of mines and plantations,” Yudhoyono said.
The fourth policy, he said, is the promotion of alternative gas-based fuel, known as BBG, to replace kerosene and diesel.
Number five is a campaign to minimize fuel consumption through reduced use of electricity in government offices, state enterprises’ offices and on the streets.
Energy and Mineral Resources Minister Jero Wacik explained that the electronic recording system had been tested in Kalimantan and could detect vehicles that repeatedly purchased subsidized fuel.
“This is aimed at preventing repeated filling [of subsidized fuel],” Jero told journalists after Yudhoyono’s speech on the government’s new fuel saving policies.
Jero said the government was planning to start implementing the five new measures on June 1.
He added the government was targeting to save Rp 5 trillion ($535 million) in subsidy budget as of December 2012, with the implementation of the new policies.
The government has allotted Rp 137.3 trillion for fuel subsidies and Rp 64.9 trillion for electricity subsidies in the revised 2012 state budget.
