PDI-P urges probe into 'kerosene fee'<\/p>\n
Tony Hotland, The Jakarta Post, Jakarta<\/p>\n
The Indonesian Democratic Party of Struggle (PDI-P) wants an
\ninvestigation launched into the collection of a Rp 50 (0.5 U.S.
\ncent) fee for every liter of kerosene sold, as it is unclear
\nwhere the funds go.<\/p>\n
The party sent a petition on Tuesday to the House of
\nRepresentatives leaders to invite the Corruption Eradication
\nCommission (KPK) to look into the case.<\/p>\n
A letter issued by Minister of Home Affairs M. Ma'aruf on Oct.
\n3, rules the highest retail price for kerosene is Rp 2,275 per
\nliter comprising a base price of Rp 2,000, a certain profit
\nmargin for retailers, transportation costs and an additional Rp
\n50 fee for \"supervision and administration\" purposes.<\/p>\n
But House budgetary committee member from PDI-P, Ramson
\nSiagian, who also sits on Commission VII on energy, said the Rp
\n50 charge, which presumably would go to the government's coffers,
\nwas never reported nor was it calculated during the deliberation
\nof the 2006 state budget, which was recently passed into law.<\/p>\n
This \"illegal\" charge was identified on Monday during a
\nhearing between Commission VII and Minister of Energy and Mineral
\nResources Purnomo Yusgiantoro and state oil company PT Pertamina.<\/p>\n
\"Thus, the commission concluded at the end of the hearing that
\nthe letter of the home ministry should be revoked because it
\nviolates the law,\" Ramson said.<\/p>\n
Issued shortly after the new domestic oil prices took effect
\non Oct. 1, the letter was addressed to all governors, regents and
\nmayors.<\/p>\n
It was also forwarded to the President, the Vice President,
\nthe chief welfare minister, the chief economic minister, the
\nfinance minister and Purnomo's office.<\/p>\n
In his calculation, Ramson said, at least Rp 90 billion had
\nbeen collected so far from this levy with an average of 900,000
\nkiloliters of kerosene being sold each month.<\/p>\n
If this continues, he added, at least Rp 500 billion would
\nhave been collected from the sales of next year's quota of 10
\nmillion kiloliters of kerosene.<\/p>\n
\"Such a levy should have been calculated as state revenue from
\nnon-tax sources. But it was never reported during the 2006 state
\nbudget deliberations. So where is it going to?\" he questioned.<\/p>\n
Ramson said energy minister Purnomo had acknowledged such a
\nlevy during Monday's hearing, but claimed he was unaware that the
\npractice was in violation of the finance law.<\/p>\n
\"Besides, how could the government still impose such a levy,
\nhowever little it may seem, after the kerosene price has been
\nsignificantly raised from Rp 700? It's the poor we're talking
\nabout here,\" the lawmaker said.<\/p>\n
Neither the energy minister nor the home minister was
\navailable for comment on Tuesday.<\/p>\n
Amid skyrocketing global oil prices, the government raised in
\nearly October the domestic oil prices by up to 185 percent in
\norder to reduce the fuel subsidy.<\/p>\n
Fuel prices were also raised in March this year. The two
\nincreases were met with strong public criticism and
\ndemonstrations.<\/p>",
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