A legislator of the United Development Party Faction (FPPP) of the House of Representatives (DPR) said he supported the government's plan to limit subsidized fuel oils consumption beginning next month.
"The fuel oils subsidy will meet its target if its consumption is limited," M Romahurmuziy said here on Wednesday.&l<>t;br />
The House Commission VII which deals with energy affairs is scheduled to deliberate on Thursday the government's plan to limit subsidized fuel oils consumption with Energy and Mineral Resources Minister Darwin Saleh.
The government needs the support of the House in implementing its subsidized fuel oil consumption plan because the program would have impact on the people.
Romahurmoziy said that the main principles for limiting fuel oil consumption was that it met its target, it was made on time, its quantity and prices were correct.
He said that many consumers were actually economically able people but they now still enjoyed a subsidy which was basically bigger than that enjoyed by those financially week ones.
Thus, the diversion of economically able consumers to the use of better quality fuel oils is a must. But this program needs four things that had to be prepared.
"The four points of readiness are infrastructure, implementation in the field, popularization and anticipation of its misuse," he was quoted by Antara news agency as saying.
He said that preparation for the implementation of the policy was not 100 percent ready.
The government would launch the program first in Jakarta, Bogor, Depok, Tangerang and Bekasi to economize up to 500,000 kiloliters a year.
The program will be expanded to cover Java and Bali as of July 1, 2011 to economize up to four million kiloliters in 2011.
In 2012 it would be expanded to cover Sumatra and Kalimantan and in 2013 to Sulawesi.
Pertamina estimated the implementation of the program across Indonesia would economize up to 14.613 million kiloliters consisting of premium regular gas 11.026 million kiloliters and diesel oil 3.586 million kiloliters.
So, the subsidized fuel oil quota set at 38.591 million kiloliters for the 2011 budget would drop to only 23.977 kiloliters.
The 23.191 premium quota set in the national budget would drop to 12.164 million kiloliters and diesel oil to 9.497 million kiloliters from formerly 13.085 million kiloliters. (dar)
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