Firms enjoy subsidized fuel in Lampung: YLKI
Firms enjoy subsidized fuel in Lampung: YLKI
Oyos Saroso H.N. and Andi Hajramurni, The Jakarta Post, Bandar Lampung/Makassar
The Indonesian Consumers Foundation (YLKI) has accused around 200
companies in Lampung province of violating the government's fuel
subsidy policy aimed at poor people.
The companies allegedly bought kerosene and fuel diesel at
subsidized prices instead of prices set for commercial
industries, it claimed.
The violation of the subsidy policy, the foundation added, has
led to a scarcity of kerosene and diesel fuel across the
province.
Lampung's YLKI chairman Subadrayani Mursalim said on Saturday
that his foundation had discovered certain companies exploiting
fuel subsidies meant for the poor by buying kerosene from non-
industrial suppliers. The official price for industrial kerosene
is Rp 2,200 per liter, while for public consumption the price is
set at Rp 700 per liter.
According to Subadrayani, kerosene has been sold to companies
in Lampung for only Rp 2,000 per liter, a saving of Rp 200 over
the official price.
Diesel fuel has also become expensive in many parts of the
province due to lack of supplies. It was selling for Rp 3,000 per
liter, causing many local fishermen to stay in port because they
could not afford to pay the higher price.
Subadrayani demanded that police start investigating the case
and take firm action against the companies involved.
He said YLKI believed that certain officials of state-owned
oil and gas company Pertamina were involved in the illegal
practice.
Pertamina head of sales and distribution for Lampung region
Doni Indrawan denied involvement of officials from his company in
the case.
However, he admitted that around 200 companies in the province
use kerosene in their production process but only 22 of them buy
the fuel from Pertamina at the industry price.
Doni said companies that refused to buy kerosene from
Pertamina bought it from local public kerosene distributors at
subsidized prices.
He claimed that Pertamina had tried several times to "explain"
the situation to the companies but they continued to use the
subsidized kerosene.
Pertamina would therefore start educating companies about the
new fuel prices in cooperation with local administrations in
order to prevent the misuse of subsidized fuel for industrial
purposes, Doni added.
He said Pertamina would form a coordination team to supervise
fuel distribution.
Meanwhile, protests against the fuel price hikes continued in
several cities across Indonesia on Saturday.
In Makassar, South Sulawesi, protesting students hijacked two
cars belonging to the Wahidin Soedirohusodo General Hospital and
Makassar Treasury Office and used them as podiums to stage a
protest.
They also burned tires and waved banners. The protest caused
a big traffic jam in front of Universitas 45 in downtown
Makassar.
Arguing that the increases burdened the public, especially
low- to medium-income people, the students threatened to continue
demonstrating until the government revoked the price rise
decision.
Protesters said the price hikes have caused suffering as it
followed on from increases in the prices of basic commodities,
meanwhile public purchasing power remained the same.
No violence was reported during the protest.