Fossil Fuels Subject to Energy Sustainability Fund, Minister Says  

TEMPO.CO, Jakarta - Starting from January 5, 2016, the government will impose a Rp. 200 and Rp. 300 levy for every liter of Premium and Solar type fuel, respectively. The levy, which will be collected as the energy sustainability fund, will also be applied for other type of fuel. "All fossil fuel will be subject to the levy," said Energy and Mineral Resources Minister Sudirman Said on Wednesday, December 30, 2015.

However, the government will not mention the price for Pertamax fuel because the government only has the authority to determine the price of Premium and Solar fuel. "Pertamax [price] depends on its economical value that will be reviewed each week," Sudirman said.

Currently, the government is in the process of drafting a regulation on energy sustainability fund. One of the possibilities is that the regulation will take the form of a Government Regulation or a Presidential Decree. What certain is the regulation must be issued before the new prices of Premium and Solar fuel come into effect on January 5, 2016.

Minister Sudirman explained that Law No. 30/2007 on Energy and Government Regulation No. 79/2014 on National Energy Policy provide enough legal framework for the energy sustainability fund. However, according to Sudirman, what needs to be regulated in detail is how the fund would be collected and who will responsible for managing it.

Sudirman added that the fund will be used to develop energy infrastructure and to support the development of renewable energy. "Our fossil fuel is almost and will certainly depleted, so we must be able to accelerate [the development] of energy infrastructures and renewable energy," Sudirman concluded.

PINGIT ARIA