Controversial fuel funds audited 'must be audited'

The Jakarta Post, Jakarta

House of Representatives speaker Agung Laksono demanded an audit into funds "illegally" collected by the government from people, who purchased subsidized kerosene.

Addressing the House's last plenary session on Friday before going into a month-long recess, Agung also said that the recently introduced surcharge of Rp 50 for every liter of kerosene sold to the public must be revoked because it was a violation of the law and the funds were not included as revenue in the 2006 state budget.

"The policy must be revoked and all funds that have been collected so far must be audited. All parties that were involved in the illegal move must be held accountable for the use of the funds," he said.

The government, based on a circular issued by the home affairs ministry introduced the surcharge as a funding source to finance the supervision of kerosene distribution, and to ensure that the subsidized fuel was only sold to households and not industry, which has to pay the full market price. The surcharge was applied two days after the government raised fuel prices on Oct. 1.

But the House has said the collection was not included in the 2006 budget deliberations, thus raising questions of validity of the policy and the possible abuse of the funds.

With monthly kerosene consumption of around 900,000 kiloliters, the home affairs ministry is estimated to have collected in the neighborhood of Rp 90 billion (US$9.2 million) so far.

However, Minister of Home Affairs M. Ma'ruf claimed that the surcharge had been revoked.

The Indonesian Democratic Party of Struggle, a self-styled government opposition faction, filed on Thursday a report with the Corruption Eradication Commission to look into the matter.