Govt to allow coal freight trains to use subsidized fuel

The government has finally agreed to allow freight trains operated by state railway company PT Kereta Api Indonesia (KAI) to use subsidized fuel starting early next year, a move seemingly to calm the company?s worker?s union which has threatened to stop transporting cargoes, such as coal on the absence of subsidized fuel.

The decision was made in the meeting led by Deputy Finance Minister Anny Rahmawati on Friday. Deputy Transportation Minister Bambang Susantono, Deputy State Enterprises Minister Mahmuddin, Deputy Mineral and Energy Resources Minister Widjajono Partowidagdo and chairman of BPH Migas Tubagus Haryono attended the meeting.

?All agree on equal (treatment) on subsidized fuel. If the trucks get the subsidized fuel, the freight trains should also receive it. The policy (allowing the freight trains to use subsidized fuel) would take into effect by January 1, 2012,? Bambang said.

The workers? union of the PT KAI has said that they would go on strike on December 6 to demand the government to allow the company to use the subsidized fuel.

The trains have long been used for transport, including transporting cargoes such as coal in Kalimantan and Sumatra.

Bambang said that President Susilo Bambang Yudhoyono would issue a presidential regulation on the subsidized fuel to the PT KAI. (*)