Govt spends Rp 1.1 trillion on kerosene subsidy a year<\/p>\n
JAKARTA (JP): President Soeharto said yesterday that it cost
\nthe government at least Rp 1.1 trillion (US$416 million) to
\nsubsidize kerosene for home use every year.<\/p>\n
\"Our kerosene consumption is 9.9 million kiloliters a year,
\nand the government subsidizes it at Rp 131 a liter,\" Soeharto
\nsaid. Kerosene sells at Rp 280 a liter.<\/p>\n
The President said the government was trying to encourage
\npeople to use coal briquettes for cooking to reduce the amount it
\npaid in subsidies.<\/p>\n
\"Coal briquettes are not only cheaper but are also clean,\" he
\ntold villagers after officially opening a coal briquette plant in
\nGresik, East Java.<\/p>\n
The plant was built with an annual production capacity of
\n120,000 tons by state-owned PT Tambang Bukit Asam coal company at
\na cost of about Rp 8.4 billion (about US$3.5 million).<\/p>\n
\"We have 31 billion tons in coal reserves, equivalent to 120
\nbillion barrels of oil,\" Soeharto said.<\/p>\n
The President said that with such a big energy potential,
\nIndonesia had a lot of room to diversify its energy resources.<\/p>\n
He said the coal reserves alone were enough for 300 years of
\nenergy consumption.<\/p>\n
\"We prioritize hydro-power and geo-thermal power for domestic
\nuse, while oil and gas are for export,\" he said of the
\ngovernment's energy policy.<\/p>\n
To meet future demand for coal briquettes, the government will
\nbuild more plants in Serang, Semarang and Cilacap.<\/p>\n
The three sites were chosen because they were near ports.<\/p>\n
Kerosene and wood are commonly used by Indonesian households,
\nalthough the government has said that using wood speeded up
\ndeforestation.<\/p>\n
\"Deforestation could endanger future generations, it also
\ncauses floods,\" Soeharto said.<\/p>\n
Minister of Mines and Energy I.B. Sudjana said yesterday that
\n100 villages in 10 provinces have begun using briquettes since
\nthe briquette promotion campaign was launched in 1993.<\/p>\n
At the discussion Suharto was asked many questions. One
\nrestaurant owner complained it was hard to buy a briquet fueled
\nstove, at which point East Java's Governor Basofi Sudirman
\nwhispered to the president.<\/p>\n
\"The governor whispered to me that he can provide as many
\nstoves you need,\" Antara quoted Soeharto as saying. (06)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/govt-spends-rp-11-trillion-on-kerosene-subsidy-a-year-1447893297",
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"sponsor": "Okusi Associates",
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