Govt provides fresh funds to boost fuel stocks

President Bambang Yudhoyono has asked the state-owned oil and gas company Pertamina to boost the national fuel stocks to a level that would be enough for 22 days from only 17.2 days at present, Media Indonesia reported on Thursday.

The instruction was made during a cabinet meeting on Thursday during which the President also promised to provide fresh cash of between US$170 million and US$200 million for the purchase of the additional fuel stocks.

Minister of Energy and Mineral Resources Purnomo Yusgiantoro said following the meeting that keeping fuel stocks for 22 days would be the ideal level to anticipate possible interruption in the fuel supply.

He, however, said that increasing the fuel stocks to reach the ideal level of 22 days would be carried out in stages. "At the end we will have sufficient fuel stocks that will be enough for 22 days," he added.

The shortages of fuel hit several areas in Java and Sumatra last week, due to the decline in the fuel supply from Pertamina, which said that it had to reduce the fuel supply because it did not have funds to buy more fuel.

The company said it had suffered a liquidity problem due to the delays in the disbursement of fuel subsidy from the government, which reached in the amount of trillions of rupiah. (*)