?Alpha? of 2009 subsidized fuels agreed at 8 percent

The government and the House of Representatives have agreed to set the fee and cost reimbursement for the distribution of subsidized fuels for 2009 at 8 percent.

The fee and cost reimbursement, better known as "alpha", is awarded to companies appointed to distribute subsidize fuels. This year, the distribution is handled by state owned oil and gas company PT Pertamina.

The 2009 oil lifting target is lower compared to 8.36 percent agreed at the working meeting between the House's Committee VII and the Energy and Mineral Resources Minister earlier.

Earlier, the government had proposed the alpha at 8.36 percent for next year, down from 9 percent this year.

President Director of Pertamina Ari Soemarno expressed in several occasions earlier his objection to any plan to lower the alpha rate below 9 percent. The alpha rate was 13.5 percent last year, he said. (*)