Govt, DPR budgetary body agree on 2012 subsidized fuel volume

The government and budgetary body (Badan Anggaran) of the House of Representatives (DPR) had agreed on Wednesday to subsidize 40 million kiloliters of fuel (BBM) in 2012.

The fuel subsidy volume will be further discussed at the House commission VII, which oversees energy sector, before approved by the House plenary session.

Of the total planned subsidized fuel, 2.5 million kiloliters of premium fuel is set aside to cover fiscal risks and will be evaluated again during the discusion on revised 2012 State Budget in mid year.

Finance Minister Agus Martowardojo said the 2.5 million of subsidized fuel would only be distributed to consumers after securing endorsement from the House.

?The subsidized fuel volume was set at 40 million kl assuming that the government controls the consumption of fuel consumption as planned,? said Energy and Mineral Resources Minister, Darwin Zahedy Saleh.

Darwin said based on the past few years annual subsidized fuel consumption, without control of consumption, subsidized fuel consumption could reach 43.7 million kl.

Darwin said the government plans to go ahead with limiting the consumption of susidized fuel in stages next year, covering Java and Bali area. (romel/roffie)