Susilo orders monitoring of fuel supplies<\/p>\n
Rendi A. Witular, The Jakarta Post, Jakarta<\/p>\n
In an effort to limit the effects of the recent fuel price hikes,
\nPresident Susilo Bambang Yudhoyono issued an instruction to all
\nstate officials to supervise and monitor fuel distribution and
\nthe prices of staple foodstuffs.<\/p>\n
Presidential Instruction No. 3\/2005 also contains measures to
\nensure affordable public transportation fares and that the
\nassistance funds derived from the reduction in fuel subsidy
\nspending reach their intended targets.<\/p>\n
\"The instruction will be implemented by state officeholders,
\nincluding ministers, governors, regents and mayors. The President
\nhas warned them that they will face sanctions should they fail to
\ncomply with the instruction,\" Cabinet Secretary Sudi Silalahi
\ntold a press conference on Thursday.<\/p>\n
He said the sanctions would range from administrative
\npenalties -- such as a reduction in rank and dismissal -- to
\nlegal proceedings if there was prima facie proof that the
\nofficeholders had violated the Criminal Code while implementing
\nthe instruction.<\/p>\n
The government has allocated a total of Rp 17.8 trillion
\n(US$1.92 billion) to finance a number of programs targeted
\ndirectly at the poor. The programs include scholarships, the
\npurchase of subsidized rice for the poor, rural infrastructure
\nprojects and health programs.<\/p>\n
Some Rp 10.5 trillion out of the Rp 17.8 trillion would be
\ntaken from the savings on fuel subsidy spending after the
\ngovernment increased fuel prices by an average of 29 percent.<\/p>\n
Sudi said the instruction also covered the need to ensure fuel
\nsupply stability nationwide and prevent any disruptions in fuel
\ndistribution due to speculation, smuggling and adulteration by
\nunscrupulous distributors.<\/p>\n
\"The government will prevent leakages in the fuel distribution
\nchain and watch for underhand practices, such as hoarding and the
\nadulteration of fuel by other substances,\" said the Minister of
\nEnergy and Mineral Resources Purnomo Yusgiantoro.<\/p>\n
He said there had been a 19 percent increase in fuel
\nconsumption over the past two months due to speculation ahead of
\nthe price increases.<\/p>\n
Purnomo also expressed fears that the big differences between
\nthe prices of kerosene and other types of fuel would encourage
\ndistributors to mix gasoline and diesel fuel with kerosene and
\nsell it at the market price to make bigger profits.<\/p>\n
\"For the immediate future, (state oil and gas company)
\nPertamina is expected to sell kerosene to retail consumers in
\nsmall bottles to prevent distributors from buying large volumes
\nfor subsequent adulteration,\" he said.<\/p>\n
The kerosene price has been maintained by the government at Rp
\n700 per liter, while gasoline is now sold at Rp 2,400 per liter,
\nup from Rp 1,810 before the March 1 hike, and automotive diesel
\nfuel at Rp 2,100, up from Rp 1,650 previously.<\/p>",
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