BPH Migas to install online monitoring system

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