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On Second Thought

Government Postpones December 2 Day without Subsidized Fuel


Bali News: Indonesia, Pertamina, Jero Wacik, Energy and Natural Recourse, Fuel Subsidies
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(11/30/2012)

Plans to introduce a day on which no subsidized fuel would be sold at gas stations on Java and Bali that was to have taken place on Sunday, December 2, 2012 [See: Pausing the Pump]  has been postponed until sometime next year.

The Indonesian Minister of Energy and Natural Resources, Jero Wacik, quoted by Bisnis.com, said that while the recommendation to suspend the sale of subsidized premium and diesel fuel for one day is a good one, current conditions do not allow the program to go ahead at this time.

Explained Wacik on Wednesday, November 28, 2012: “According to my opinion, this is a good program. But the December 2nd date is just too soon. Earlier we decided at a meeting that this program would not take place this year.”

Saying effort to reduce the use of subsidized fuel needs more socialization, Wacik used the opportunity to urge the State Oil Company Pertamina to produce more non-subsidized fuel products to ensure the public has a choice at the fuel pumps.

Plans are now afoot to re-introduce the program of days without subsidized fuel in 2013, on which only Pertamax and Pertamax plus can be sold at gas stations. In an effort to reduce national dependency on subsidized fuels the government is now considering banning the sale of these fuels on Sunday of each week starting sometime in 2013.


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