March 19, 2008

Fauzi tells govt to hurry kerosene phase-out

Mustaqim Adamrah ,  The Jakarta Post ,  Jakarta

Jakarta's administration is urging the central government to accelerate the phase-out of subsidized kerosene in the capital, despite indications the city is not ready for the national program.

The call, made by Governor Fauzi Bowo on Tuesday, was similar to comments he made in November.

"Hopefully, the government's plan to phase out the distribution of subsidized kerosene will be running smoothly and can start by the end of May," he said at City Hall.

But he warned that to meet targets, the phase-out needed to be matched with the distribution of gas stoves and three-kilogram LPG cylinders to households.

The administration expects more than two million households will make the switch from kerosene to gas stoves in line with the government's nationwide kerosene-to-LPG conversion program.

According to Jakarta Mining Agency head Peni Susanti, as many as 1.7 million gas stoves and LPG cylinders have been delivered to households in Jakarta this month.

The program started in December 2006, with gas company PT Pertamina playing a lead role in its implementation.

The government hopes the program will enable it to slash its spending on fuel subsidies, which currently cost the state about Rp 40 trillion (US$4.3 billion) every year.

Fauzi said the phase-out plan was initially scheduled for the end of this month but was delayed due to "disturbances in distribution".

Peni said the disruption occured in five subdistricts, including Kalideres and Cengkareng in West Jakarta, where many households are yet to receive gas stoves and LPG cylinders.

She also hinted the city was not ready for the gas conversion program as it "still lacked LPG-filling stations" to supply LPG to more than 200 retailers.

"There are only seven LPG-filling stations right now, most of which are in North Jakarta. Ideally, we need at least five stations in every municipality," she said.

Peni said two companies had expressed their willingness to build another two LPG-filling stations in North Jakarta as the municipality offered "idle lands with relatively low prices", but declined to name the companies.

In response to Fauzi's statement, city councilor Nurmansjah Lubis of the Prosperous and Justice Party (PKS) faction said he was worried the city was not yet ready to be part of the national program.

"Many households have complained their stoves are faulty. These kind of issues always appear when it comes to the implementation of the city administration's sporadic and rushed programs," Nurmansjah, who is also the secretary of Commission B on economic affairs, said

The program has encountered various hurdles, including defects reported in some of the stoves and cylinders handed out.

There has also been widespread protests from low-income households, which the program is targeting, complaining they cannot afford to buy replacement cylinders.

Kerosene, which is sold in one-liter bottles, is considered to be more affordable.

Three-kilogram LPG cylinders distributed in 2007

Municipality Number
—————————-
Central Jakarta 178,000
North Jakarta 163,546
East Jakarta 298,702
West Jakarta 294,949
South Jakarta 331,338
—————————-
Total 1,266,535

Source: PT Pertamina

Tags: , ,
Permalink • Print • Comment

Trackback uri

http://jakarta.polwan.org/blog/fauzi-tells-govt-to-hurry-kerosene-phase-out-109/trackback

Related Entries

Leave a Comment

You must be logged in to post a comment.