National

President Orders Continued Supply of Fuel
Thursday, 14 July, 2005 | 21:12 WIB

TEMPO Interactive, Jakarta:The Indonesian government has estimated that by the end of the year the total fuel consumed will increase by around five million kilolitres from the 59.6 million kilolitres annual quota.

Minister of Energy and Mineral Resources Purnomo Yusgiantoro said that this estimate was based on fuel consumption increasing to 180,000 kilolitres per day from the previous level of 170,000 kilolitres.

Yusgiantoro said that the President had already ordered that fuel stocks continue to be supplied.

“This way, members of the public can continue enjoying fuel,” the Energy Minister told reporters at the State Palace after a limited cabinet meeting led by the President.

According to Yusgiantoro, fuel imports will increase as a consequence of the President’s decision.

However, these measures must continue to be carried out to prevent fuel shortages amongst the public.

The shortage took place because the state oil & gas company Pertamina tried to reduce fuel supplies in order to cut back the fuel consumption rate.

To cut back the increasing cost of fuel subsidies, Yusgiantoro said that the government had two options: fuel economizing or increasing fuel prices.

“However, the increase of the price can not be carried out in an arbitrary manner.”

M.S. Hidayat, Chairman of the Indonesian Chamber of Trade and Industry (Kadin), is of a different opinion.

According to him, fuel prices must be increased despite the ensuing political impact.

“Economizing on the use of energy will not settle any problem,” said Hidayat, “The only way to solve fuel shortagesis by eliminating the subsidies.”

The Kadin Chairman however stated that subsidies must still be provided for the industrial sector that employs many workers.
“This includes fishermen,” said Hidayat.

Achmad Faisal, Head of Pertamina’s Fuel Division said that six of 160 Pertamina oil depots--in Pangkalan Balam, Atapupu, Tobelo, Wayame, Reo and Maumere—had supplied that would last for less than three days.

Faisal added that currently the fuel supply allotment was at the level of 18.1 days.

Pertamina announced the new selling price of the for industrial and international bunker fuel on Wednesday (13/07).

This new price has already been in force since the first of this month (1/07).

This was stipulated in a decision letter from Pertamina’s Managing Director. Pertamina spokesman Djauhari Kunsetyanto said in a press release that the market selling price shall apply throughout the oil and gas industry.

This price will also apply to public mining industries such as coal, iron ore, metals that does not contain iron, raw materials for cement and geothermal.

Small industries and conventional mining have been excluded from this new regulation. (RIZA | SURYANI | RETNO | FASABENI-Tempo News Room)