ID :
17836
Wed, 09/03/2008 - 08:04
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https://oananews.org//node/17836
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News Focus: GOVT TO EXPAND KEROSENE-TO-GAS CONVERSION PROGRAM TO OTHER REGIONS
By Eliswan Azly
Jakarta, Aug 2 (ANTARA) - The kerosene-to-gas conversion program which has reached a success in Jakarta and its surrounding areas - such as Tangerang, Bekasi, Bogor, Depok, and Jakarta (Jabodetabek) - will be expanded to cover other regions in West, Central and East Java provinces.
"The government's program in Jabodetabek has finished. All kerosene stocks had been withdrawn and hopefully the conversion program will be expanded to other regions in West, Central and East Java provinces," President Director of state oil/gas company Pertamina Ari H Soemarno said after a meeting with the Vice President here on Tuesday.
Under the kerosene-to-gas conversion program launched since 2007 to September 1, 2008, at least 12 million of 3-kg gas cylinders and gas stoves had also been distributed to the people, meaning that 40 percent of the target has been met.
While a new achievement reached 40 percent, the kerosene that could be withdrawn was 1.37 million kiloliters (60 percen) and the filling of liguified petroleum gas reached 300,000 tons.
The withdrawal of kerosene, he added, had resulted in reduced subsidy worth Rp7.7 trillion. Minus the price of cylinders and others relevant things, at least Rp5.8 trillion could be saved till September, 2008.
"I believe that Pertamina will achieve the projected economizing of kerosene, while the number of cylinders will not reach the target at the end of this year," he said, adding that the total of kerosene to be withdrawn at the end of this year stood at 2.1 million kiloliters.
To support the kerosene-to-gas conversion program, the government will soon set up a task force to monitor the implementation of the program, an official said.
The team would be made up of representatives from state oil and gas company Pertamina, the Attorney General's Office, the Finance and Development Supervisory Board (BPKP) and some relevant ministries, Ari said.
"The team will later serve as a Pertamina partner in implementing the kerosene-to-gas conversion program," he said.
Ari said the government had completed the implementation of the kerosene-to-gas conversion program in Jakarta and environs, and would expand the program to cover West, Central and East Java provinces.
The kerosene-to-gas conversion program was high on the list of the government's priorities because it would help save a great deal of money from energy consumption, he said.
For its part, Pertamina deemed it necessary to have a partner to ensure the success of the program in accordance with the law, he added.
He also said he did not object to the Corruption Eradication Commission (KPK) investigating Pertamina in connection with the program which he said had sparked public protest.
The program was aimed at encouraging the public to switch from kerosene to gas and that it was reasonable if the program had been widely criticized, he said.
In the meantime, an oil industry observer, Dr Kurtubi said the kerosene-to-gas conversion program should be implemented in such a way with a good management, namely that the people should have no problems in obtaining the gas from the market.
"There are two things Pertamina has to take into account in the kerosene-to-gas conversion program, namely the supply of gas on the market and its retail price which must not burden the people," he said.
If gas became scarce as what happened in the past few weeks, people would become frustrated with the government's kerosene-to-gas program.
In addition, the government is also required to monitor the retail prices of three and 12 kg gas cylinders on the market, because many gas retailers sold 12-kg cylinders on the market at Rp100,000 or even higher.
"If the price of gas is so high, this policy will be burdensome to the people," he said, adding the government should not only watch this condition just because that Pertamina is not only a producer but also a regulator.
According to Kurtubi, ff the past government was not trapped in oil mismanagement, as a matter of fact, Indonesia could have reaped great profits from the current high world crude oil prices and would not have plunged into its present difficult situation if it had managed its oil potentials well.
Indonesia`s failure to manage its oil assets properly in the past few years had caused its crude oil production to decline and led to its dependence on imported oil which had now placed the country in a difficult position.
Speaking in an interactive discussion on fuel oil prices which was organized by the Regional Representatives Council (DPD) recently, Kurubi said that as a result of improper management of the country`s oil potentials, the government was now facing difficulties in maintaining the state budget amid the sky-rocketing crude prices in the world market.
Indonesia could have reaped huge profits from the world crude price hikes but mismanagement of our oil potentials has caused us to face difficulties, Kurtubi said.
Jakarta, Aug 2 (ANTARA) - The kerosene-to-gas conversion program which has reached a success in Jakarta and its surrounding areas - such as Tangerang, Bekasi, Bogor, Depok, and Jakarta (Jabodetabek) - will be expanded to cover other regions in West, Central and East Java provinces.
"The government's program in Jabodetabek has finished. All kerosene stocks had been withdrawn and hopefully the conversion program will be expanded to other regions in West, Central and East Java provinces," President Director of state oil/gas company Pertamina Ari H Soemarno said after a meeting with the Vice President here on Tuesday.
Under the kerosene-to-gas conversion program launched since 2007 to September 1, 2008, at least 12 million of 3-kg gas cylinders and gas stoves had also been distributed to the people, meaning that 40 percent of the target has been met.
While a new achievement reached 40 percent, the kerosene that could be withdrawn was 1.37 million kiloliters (60 percen) and the filling of liguified petroleum gas reached 300,000 tons.
The withdrawal of kerosene, he added, had resulted in reduced subsidy worth Rp7.7 trillion. Minus the price of cylinders and others relevant things, at least Rp5.8 trillion could be saved till September, 2008.
"I believe that Pertamina will achieve the projected economizing of kerosene, while the number of cylinders will not reach the target at the end of this year," he said, adding that the total of kerosene to be withdrawn at the end of this year stood at 2.1 million kiloliters.
To support the kerosene-to-gas conversion program, the government will soon set up a task force to monitor the implementation of the program, an official said.
The team would be made up of representatives from state oil and gas company Pertamina, the Attorney General's Office, the Finance and Development Supervisory Board (BPKP) and some relevant ministries, Ari said.
"The team will later serve as a Pertamina partner in implementing the kerosene-to-gas conversion program," he said.
Ari said the government had completed the implementation of the kerosene-to-gas conversion program in Jakarta and environs, and would expand the program to cover West, Central and East Java provinces.
The kerosene-to-gas conversion program was high on the list of the government's priorities because it would help save a great deal of money from energy consumption, he said.
For its part, Pertamina deemed it necessary to have a partner to ensure the success of the program in accordance with the law, he added.
He also said he did not object to the Corruption Eradication Commission (KPK) investigating Pertamina in connection with the program which he said had sparked public protest.
The program was aimed at encouraging the public to switch from kerosene to gas and that it was reasonable if the program had been widely criticized, he said.
In the meantime, an oil industry observer, Dr Kurtubi said the kerosene-to-gas conversion program should be implemented in such a way with a good management, namely that the people should have no problems in obtaining the gas from the market.
"There are two things Pertamina has to take into account in the kerosene-to-gas conversion program, namely the supply of gas on the market and its retail price which must not burden the people," he said.
If gas became scarce as what happened in the past few weeks, people would become frustrated with the government's kerosene-to-gas program.
In addition, the government is also required to monitor the retail prices of three and 12 kg gas cylinders on the market, because many gas retailers sold 12-kg cylinders on the market at Rp100,000 or even higher.
"If the price of gas is so high, this policy will be burdensome to the people," he said, adding the government should not only watch this condition just because that Pertamina is not only a producer but also a regulator.
According to Kurtubi, ff the past government was not trapped in oil mismanagement, as a matter of fact, Indonesia could have reaped great profits from the current high world crude oil prices and would not have plunged into its present difficult situation if it had managed its oil potentials well.
Indonesia`s failure to manage its oil assets properly in the past few years had caused its crude oil production to decline and led to its dependence on imported oil which had now placed the country in a difficult position.
Speaking in an interactive discussion on fuel oil prices which was organized by the Regional Representatives Council (DPD) recently, Kurubi said that as a result of improper management of the country`s oil potentials, the government was now facing difficulties in maintaining the state budget amid the sky-rocketing crude prices in the world market.
Indonesia could have reaped huge profits from the world crude price hikes but mismanagement of our oil potentials has caused us to face difficulties, Kurtubi said.
