18 January 2012

DEPUTY MINISTER: Fuel Savings Program Restrictions Rp40 Trillion


Deputy Minister of Energy and Mineral Resources Widjajono Partowidagdo revealed, saving fuel restriction program will reach Rp40 trillion per year.

"If up to 2014 or during the three years of the subsidy can be saved reach Rp120 trillion," he said in Jakarta on Wednesday.

According to him, the great value of these savings menfaatnya for improving people's welfare.

"He said Indonesia needed funds, would increase the national capacity. If so then the subsidy should be abolished and the money will be used improve the ability of national subsidies," he said.

Widjajono said the State Budget Law 2011 actually mandates the elimination of fuel subsidies through price increases.

However, the option is not taken by the government and parliament also reached the time limit expires on December 31, 2011.

Then, the fuel subsidy removal option is shifted into fuel restrictions, and provide subsidies to those entitled.

"So, later this year in particular private four-wheeled vehicles may no longer use subsidized fuel, but are driven menggunankan nonsubsidized CNG or gasoline," he said, affirmed.

He added, he had asked the Deputy Minister of Transport to improve public transit systems to be more comfortable and safer.

"In order to use the fuel in private vehicles could be reduced, as will many are turning to public transportation," he said.

Widjajono admitted, installing a new conversion tool (CONVENTER kit) in his car with the cost of installing Rp2 million employees who work PT Dirgantara Indonesia.

He also plans to visit the Aerospace Indonesia in Bandung.

Government restrictions on subsidized fuel will run starting from the premium per 1 April 2012.

The plan, in 2012 will include restrictions on subsidized premium in Java-Bali region.

The program was mandated restrictions on Law No. 22 Year 2011 regarding State Budget 2012.

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