Govt to systemize monitoring of subsidized fuel consumption for public transport

After having implemented a trial program in Greater Jakarta area, the government plans to monitor closely the subsidized fuel consumption of public transportation in Java and Bali islands in 2012.

To realize the plan, the government will install radio frequency identification (RFID) in public transport vehicles in big cities in Java and Bali islands beginning August 2012.

The RFID will help the government in mapping subsidized fuel consumption of public transports. The plan is part of the government efforts to reduce subsidized fuel consumption to ease state budget deficit.

?The government, Pertamina and downstream oil and gas regulator BPH Migas will implement this program in Java and Bali islands in 2012,? Director General for Oil and Gas, Evita H. Legowo, said Thursday, at the launching ceremony of the trial program for Greater Jakarta area in Senen, Central Jakarta.

Evita said RFID will be installed in all public transportation vehicles in major cities. Since, the government will have to hold tender for the program, the implementation of the program will begin in August next year at the earliest.

The purpose of the program is to ensure that the consumption of subsidized fuel meets the right target.

The Commission VII of the House of Representative (DPR) and the government has agreed to set subsidized fuel consumption next year at 40 million kilo liters for premium fuel. According to Evita, without control, the target would not be attained.

As for this year, the subsidized fuel consumption for premium fuel under the revised state budget was set at 40.4 million kiloliters. However, observers say the subsidized fuel consumption could be higher than quota due to lack of restriction. (romel)