REPUBLIKA.CO.ID, JAKARTA - An energy expert from the ReforMiner Institute, Pri Agung Rakhmanto said that subsidized fuel restriction was realistic policy considering the current economic situation. Yet, he reminded that evaluation was still needed to asses its impact to fuel consumption and Revised State Budget 2014.
According to Revised State Budget 2014, Indonesia's subsidized fuel reaches 46 million kiloliters.
"We must support this policy as a control measure. Government must apply better socialization and supervision," Rakhmanto said recently.
Government through Downstream Oil and Gas Regulatory Agency (BPH Migas) restricts subsidized fuel policy through a circular letter on July 24, 2014. The policy rules that subsidized diesel is not be sold in Jakarta on August 1. Then the subsidized diesel distribution returns to normal only in certain areas in Java, Sumatra, Kalimantan and Bali but only at 08.00 am to 06.00 pm local time. Those certain areas are industry, mining, plantation and ports.
The policy also cuts allocation of subsidized fuel for fishermen channeling institution by 20 percent. The subsidy then will be allocated for fishing vessels under 30 tonnes. On August 6, all gas stations at toll roads will not sell subsidized fuel.
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