BPH Migas to install online monitoring system

The Downstream Oil and Gas Regulatory Agency (BPH Migas) needs up to Rp 300 billion (US$29.15 million) to install an online system to monitor the distribution of kerosene throughout the country.

The agency would need about six months to install smart cards and establish a real-time online system at kerosene agents across Java, BPH Migas director of fuel products Adi Subagyo Subono said late on Wednesday, after attending a hearing with the House of Representatives Commission VII on energy and mining.

"Every customer will also get a card, which can be used like an ATM card," said Adi. "If your quota is out, you can no longer get kerosene."

With such a system, it is hoped that stockpiling and reselling kerosene to industries or smuggling it outside of the country could be minimized.

The commission promised to support BPH Migas' proposal to install an such an online monitoring system, saying that with closer supervision, the amount of kerosene misallocated could be minimized.

Adi said in the future, the government would calculate the kerosene distributed based on the amount sold by the agents, instead of the amount released from the depots, as at present.

The new system would minimize the possibility of tanker trucks "leaking" kerosene after leaving depots, he said.

In BPH Migas' plan, the tankers will also have a global positioning systems installed to monitor their locations at all times. -- JP