Idea to Stop Premium Fuel Sale in Jakarta Needs Discussions

TEMPO.CO, Jakarta - The idea of Jakarta Governor Basuki Tjahaja Purnama (Ahok) to stop the sale of Premium gasoline in Jakarta has triggered public responses as it was seen as lacking grounds and is ineffective.

The Jakarta governor has raised the idea to stop the sale of Premium in Jakarta and encourage the people to use public transportation. Therefore, subsidy for premium should better be used for developing public transportation, according to Ahok.

"We are as the Jakarta residents should no longer consume Premium. The subsidy should be better be used for developing public transportation so that people would no longer use their private vehicles but change it to public transportation," he was quoted as saying by detikfinance, in Kelapa Gading, North Jakarta on Tuesday (Feb. 2).

According to the Indonesian Consumers Institute (YLKI), Ahoks idea to stop the sale of Premium gasoline in Jakarta in order to encourage use of public transportation will not be effective. "Before taking such a step, the public transport facilities need to be improved. Public transportation network should be expanded to make all corners of the city accessible. Just stopping the sale of a premium fuel will not be effective," YLKI Chairman Tulus Abadi said on last Friday.

The same opinion was also voiced by the Director of the Public Policy Study Center (Puskepi) Sofyano Zakaria. He said the idea to ban the sale of Premium in Jakarta was groundless.

"We have the impression that Ahok was talking only as he did not know if Premium is not subsidized. So, what reason he has to ban the sale of Premium in Jakarta," Sofyano Zakaria said on last Wednesday.

Therefore, both state-owned oil company Pertamina and the Ministry of Energy and Mineral Resources (ESDM) shared the opinion that further discussions were still needed before the idea of the Jakarta governor is decided to be implemented.

"We need to discuss it further. We will sit together with the Jakarta regional government to discuss the idea," Pertamina Corporate Communication Vice President Wianda Pusponegoro said in Jakarta on Thursday (Feb. 4).

She said Pertmina had not yet had a meeting with the Jakarta government because it was still sending a letter to the ESDM minister whose copy would be delivered to Pertamina.

"We will coordinate with the Jakarta government and ask about its main objectives to stop the sale, whether it is willing to boost the fuel-to-gas conversion program for public transportation or other vehicles which would be suitable for higher octane fuels of over the Research Octane Number (RON) 88," she said.

Pertamina also needs to meet the ESDM ministry to obtain its response on the idea of stopping the sale of Premium in Jakarta.

"We have to adopt aspirations which are based on the polices of the central government and the regional government of Jakarta. We must refer to the government policy," she said.

Wianda said Premium consumption in Jakarta per day is about 4,150 kiloliters or about seven percent of the national consumption need of 75 thousand kiloliters.

"So, we have to study the consumption between private vehicles (cars and motor cycles) and public transportation. How much is their need," she said.

In the meantime, the ESDM ministry is also planning to discuss the idea of eliminating the RON-88 Premium sale in Jakarta with the Jakarta regional government.

"I have not yet me with Pertamina and the Jakarta regional government. We will later meet to see its negative and positive aspects and what impact it will have," Director General for Oil and Gas Affairs of the Ministry of Energy and Mineral Resources, IGN Wiratmaja Puja said on Wednesday (Feb 3).

He said that discussions will focus on positive and negative aspects of the stopping of the Premium sale in Jakarta. After all, Jakarta and its satellite towns of Bogor, Depok, Tangerang and Bekasi (Jabodetabek) are regions which consume the highest volume of Premium.

Wiratmaja said the problem needs to be discussed because Premium gasoline sale in Java, Madura and Bali islands is not subsidized. If its sale is scrapped it will reduce the fuel variants that are consumed by the people.

"Yes, it is not a subsidized fuel. Therefore, we should first meet with Pertamina. Probably the Jakarta government has certain reasons. But it will reduce the variations of the peoples choice. So, it needs to be discussed further," the director general said.

He stressed that any decision on whether Premium sale is scrapped in Jakarta will not have impact on subsidy.

In the meantime, Tulus Abadi, the Executive Chairman of YLKI, said Ahoks idea to stop the sale of Premium in order to encourage use of public transport will not be effective.

"Before taking such a step, the public transport facilities need to be improved. Public transportation network should be expanded to make all corners of the city accessible. Just stopping the sale of a premium fuel will not be effective," Tulus noted on Friday.

He said so far, the regional government of Jakarta was only relying on the TransJakarta Busway as its flagship transport. The development of TransJakarta feeders and the Mass Rapid Transport (MRT) would not be effective without a supportive transport system that reaches areas so far not served by public transportation.

Moreover, the prices of Pertamax, Pertalite and Premium fuels are going down. Tulus predicted that the downward trend in the global oil prices will continue and fuel oils will also become cheaper and cheaper.

He said about 60 percent of private vehicles in Jakarta comprise motorcycles. Now, many motorcycle drivers have shifted from using Premium to consuming Pertalite, even Pertamax.

"Therefore, stopping the sale of Premium sales with a view to encourage people to use public transport, will not be effective, though it might help in reducing pollution in Jakarta," YLKI chairman said.

Tulus said if the Premium gasoline is phased out from Jakarta and all vehicles start using high octane fuel oils, the quality of gas emissions will improve and air pollution in the capital city will be reduced.

ANTARA