Mon, 20 Mar 2000

Gas station owners refuse coupon system

BANDUNG (JP): More than 70 owners of gas stations grouped in the Bandung and Sumedang branches of the Association of National Oil and Gas Businessmen (Hiswana) have refused a coupon system proposed by the government.

Dadang Amir Hamzah, the chairman of the Bandung-Sumedang Hiswana branch, told a news conference here on Saturday that the coupon system, which would help public transportation owners get diesel fuel and gas at lower prices, could lead to corruption.

"There would be fake coupons circulated among the vehicle owners, and this would hit gas station owners financially. Even rupiah notes, which have complicated designs and colors, have been falsified," Dadang said.

The government plans to increase fuel prices, but will exempt public transportation vehicles. It will distribute coupons to public transportation owners. Holders of the coupons, which must be shown at the time of purchase, will receive lower fuel prices.

The coupons will be distributed through the local Organization of Land Transportation Owners (Organda).

However, many consider that the plan may cause confusion among public transportation drivers and owners of gas stations.

Those who are skeptical about the plan said the government would find it difficult to distribute the coupons to all drivers of public transportation vehicles across the archipelago on April 1, when the new fuel prices will take effect.

Dadang said the coupon system would bring about new problems. "If we unfortunately receive counterfeit coupons, we will not deserve compensation from the government."

After a six-hour meeting, the Bandung-Sumedang Hiswana branch offered the government an alternative to the coupon system.

"The drivers could cash the coupons at designated banks and buy fuel at gas stations in cash at a normal price. This sounds more practical," Dadang said.

Meanwhile in a one-day seminar on Energy Revolution in the 21st Century and The Implication of Fuel and Electricity Price Hike in Bandung, an expert staff member of the Ministry of Mines and Energy acknowledged the coupon's drawbacks.

"The mechanism of the subsidy sets up two different prices of fuel which will be very difficult to implement," Iin Arifin Takhyan, who is in charge of oil and gas affairs at the ministry, said in the seminar held at Padjadjaran University.

"The coupon distribution, which will involve many institutions, is vulnerable to distortion. Fake coupons, distribution of coupons to ineligible parties and resale of used coupons are very possible."

The government, however, would maintain the system and promise to tightly control the production, distribution and use of the coupons, he said.

"PT Peruri, a state-owned printing company which prints rupiah notes, is to print the coupons and will be extra careful in producing them."

"If we find any more problems during the first three-month trial, cashing coupons at the designated banks may be possible," he said. (25/sur)