Fuel coupon system is not yet final: Bambang

Minister of Mines and Energy Susilo Bambang Yudhoyono said on Wednesday the government had not yet decided whether to use the coupon system to protect the poor people and public bus passengers from the increase in fuel prices.

Bambang said the cabinet meeting on Wednesday decided to let the National Development Planning Board (Bappenas) decide if the government should implement the coupon system.

Bambang's statement came amid growing protests from various parties, including gas station owners, over the coupon system.

Under the system, the poor people and public bus owners will be provided with coupons with which they will still be able to buy fuel at cheap price after the government increases fuel prices in April 1. The fuel traders and gas station owners could later reimburse the coupons at certain state banks.

The government planned to raise the fuel price to cut fuel subsidies. The cut in fuel subsidies is part of the agreement between the government and the International Monetary Fund (IMF).

Staff expert of the ministry Iin Arifin Takhyan earlier said aside from the coupon system, the ministry once mulled imposing fuel taxes on the public during the processing of vehicle ownership document.

Under the alternative Subsidy Compensation System, the government will maintain the current fuel prices but private vehicle owners will pay twice the current fee for the processing of their vehicle ownership documents. (*)