Monday, 23 July, 2012 | 21:30 WIB
Government Lacks Planning, says Resources Analyst
TEMPO Interactive, Jakarta:Oil analyst Kurtubi, says the government’s plan to import Premium fuel in order to meet the demands of the fasting season and the Eid Al-Fitr holiday seems sudden and is a result of poor planning.
"The sudden nature of this import is the result of poor planning for the Premium quota prediction," he told Tempo on Sunday.
The government is not consistent in anticipating the high demand for fuel and is instead only relying solely on data on demand for 50 million kiloliters.
"If the government relies solely on quota data, it is only setting itself up for a fall," he said.
So that the government’s annual predictions do not miss the mark, he says, PT Pertamina (Persero) should be bold enough to use alternative energy, one of which is gas.
"I have repeatedly explained the importance of using alternative energy," he said.
If alternative energy is used, people will not rely solely on Premium fuel. Another way to overcome the lack of supply, he says, is to reduce 2 percent of economic growth.
"Do not just continue to produce, but run out of fuel supply," he said.
However, this solution is considered risky because it will kill the industrial sector, which may result in unemployment and crime.
As for the possibility of rising demand for diesel, Kurtubi predicts it will not happen. Diesel is more widely used by the industrial sector than by individuals. Industrial activities generally decline during the Ramadan to Eid Al-Fitr period.
According to Kurtubi, the habit of suddenly importing fuel is damaging.
"People like traders tend to quote their price at will, if the import is sudden; as you know, this relates to the state budget," he said.
PT Pertamina plans to import 1.5 million kiloliters of Premium for the anticipated surge in demand for fuel. The imports are divided in two phases, 900,000 barrels and 600,000 barrels respectively.