The House of Representatives (DPR)’s Commission VII on energy has agreed to set the quota for subsidized fuel oil in the Draft 2012 State Budget at 38.4 to 41 million kiloliters.
Reached at a working meeting with the House Commission VII, Energy and Mineral Resources Minister Darwin Minister Saleh said here on Thursday, the agreement was based on considerations that subsidized fuel consumption in 2012 should be tightly controlled and managed.
The fuels quota of 38.4 million kl will consist of 23.2 million kiloliters of premium gasoline, 2.1 million kl of kerosene, and diesel fuel 13.1 million kl.
The details of the 41 million kl are 24.6 million kiloliters premium, 2.1 million kl of kerosene, and diesel fuel 14.4 million kl.
The assumption for 2012 which was set at maximally 41 million kl was lower than the prognosis in 2011 at 41.42 million kl.
The prognosis in 2011 amounted to 15.46 million kl.
Oil and Gas Director General of the Ministry of Energy and Mineral Resources Evita Legowo said the quota of 38.4 million kl was set with the assumption that fuel oil consumption would be controlled.
Ganinduto Dito of House Commission VII said the government must have the courage to further reduce the consumption of subsidized fuels.
“I believe the government can reduce it to 40 million kiloliters only,” he said.
The meeting also agreed that the bio-fuel subsidy for bio-diesel would be set at Rp2.500-Rp3.000 per liter and bio-ethanol at Rp3.000-Rp3.500 per liter.
The volume of liquefied natural gas in the 2012 draft budget is set 3.6 million tonnes.
Chairman of Commission VII Teuku Riefky Harsya said what had been agreed in the meeting still needed to be discussed at the next meeting of the House Budgetary Agency.
“This still constitutes an indicative ceiling and still has to be taken to Budgetary Agency. So, it still has a long way to go,” he said.
