Legislators warn of rampant fuel smuggling out of country
Monday, March 6 2000 - 04:00 AM WIB
Legislators warn the government of the rampant smuggling of heavily subsidized fuel to neighboring countries.
Legislator Daniel Tanjung of the House of Representatives budget committee said that the most smuggled fuel were automotive diesel and kerosene fuel due to the big difference between domestic and the overseas price.
Legislator Aberson Sihaloho conceded that there has been rampant smuggling of subsidized fuel out of the country because of the huge price differences.
He pointed out as an example that the local kerosene price in April would increase to Rp 600 per liter, while the produce cost Rp 2,000 per liter in Brunei.
The two legislators warned the government to work extra hard to ensure that the subsidized fuel products go to the intended target.
The government will provide a huge fuel subsidy of more than Rp 22 trillion in the April-December 2000 state budget. The subsidy is aimed at maintaining the price of fuel products for public transportation and the state electricity company PLN, and kerosene for the poor at current levels. The government has decided to increase the price of fuel products by an average 12 percent starting next month.(*)