Regional administration, Bappenas to be involved in distribution of subsidized fuel

Regional administration, the National Development Planning Agency (Bappenas) and the Police will be involved in the distribution of heavily subsidized fuel to ensure that the subsidy facility goes to the intended target, according to Minister of Mines and Energy Susilo B. Yudhoyono.

Susilo said on Thursday that there was determined to safeguard its fuel pricing policy due to significant price differences by recruiting various government institutions in the distribution of the commodity.

He pointed out that the involvement of Bappenas was because the planning agency had a complete data and infrastructure on the country's poor population that deserves the fuel subsidy.

"The fuel subsidy facility must directly benefit some 13.3 million poor population in Indonesia. The subsidy must not go to the wrong target," Susilo told editors of the mass media during a gathering launch as the first effort to socialize the need for the government to raise fuel prices.

The plans to raise fuel prices by an average of 10 percent. But prices of industrial diesel for state electricity company PLN, automotive diesel for public transportation, and kerosene for the poor will not be increased.

However, many fear that the subsidy would be enjoyed by the non intended target group due to loopholes and corrupt government officials.

Meanwhile, Susilo said that the government was also preparing a contingency plan in case oil price tumbled to US$18 per barrel or below during the period of the April-December 2000 budget year. He didn't disclose the plan.

The government is revising upward its oil price assumption in the next state budget to $20 per barrel from $18 per barrel following pressure from legislators.(*)