Indonesians Burn Rp550 Billion Worth of Subsidized Fuel Daily

TEMPO.CO, Jakarta - The government has earmarked Rp194.9 trillion from the 2014 state budget for oil fuel (BBM) subsidy. Deputy Minister of Energy and Mineral Resources Susilo Siswoutomo said this meant the nation would spend around Rp550 billion daily to subsidize oil fuel.

“Imagine if we cease using subsidized fuel on Mondays and Thursdays, within a week, we could save Rp1.1 trillion or Rp50 trillion a year.  The Rp50 trillion could be used to build anything we want,” Susilo said at the Ministry of Energy and Mineral Resources office, Jakarta, on Monday, April 15, 2014.

Susilo said the government was left with not other option on this issue but call on people to be efficient in consuming subsidized fuel.  “Those restriction or prohibition has always been visualized by the people as ‘we need fuel but why is it prohibited?’,” he said.  Susilo added owners of luxury cars had continued to use subsidized fuel, which was originally aimed at those of the lower economy.

He said the government was presently formulating possible means to curb the consumption of subsidized fuel and that it was impossible to simply bar some particular groups of people from using the fuel.

Susilo said the government had prepared two possible steps to control the distribution of the subsidized fuel according to the set quota as stipulated in the year’s state budget.

“There is the RFID (Radio Frequency Identification), which will possibly be more focused on averting leaks of diesel fuel to industries, and the non-cash transaction for fuel purchases.  This non-cash transaction is being finalized and would be ready soon.” 

BERNADETTE CHRISTINA MUNTHE