Tue, 08 Jan 2002

Kerosene crisis continues in numerous regions

The Jakarta Post Jakarta

In the absence of a crackdown on distributors working for state- owned oil company Pertamina, the kerosene crisis continues to affect North Sumatra, West Java, East Java and South Sulawesi.

Many people living in rural areas of North Sumatra have been forced to rely on palm oil to meet their fuel needs because of the ongoing lack of kerosene in the local market, while hundreds of women formed long queues at kerosene distributor outlets in the provincial capital of Medan on Monday.

Local retailers said they were finding it difficult to get kerosene supplies from distributors, who insisted they were not withholding their stock.

As well as kerosene, supplies of solar and premium have also been running low in Asahan regency, especially in the town of Tandjung Balai. The kerosene price has soared to Rp 1,500 per liter from the official price of Rp 550 over the last two weeks while the premium price has risen to Rp 2,500 from the official rate of Rp 1,450.

In Cirebon, West Java, an alliance of nongovernmental organizations and political parties held a demonstration in the town, calling on the Cirebon regency legislature and local administration to take action against kerosene distributors who were believed to be withholding their stock in anticipation of the government's plan to raise fuel prices this month.

"Distributors who are found to be stockpiling should be charged with subversion because their actions have affected the majority of the people," Soenoto, chairman of the Association of Engineers, said here on Monday.

The demonstrators also called on National Police Chief. Gen. Da'i Bachtiar to step down over the police's failure to take action against kerosene distributors who have stockpiled fuel in a bid to reap higher profits after the planned fuel price hikes.

They also called on President Megawati Soekarnoputri to fire Pertamina president Baihaki Hakim, who they believe should be held responsible for the kerosene shortages.

"Pertamina has colluded with its distributors and the Police in an attempt to press the government to raise fuel prices immediately," said Soenoto.

Maskub Buntoro, chairman of the Cirebon legislature, pledged that the legislative council would summon Pertamina's distribution unit in Balongan to give an account of its role in the regency's kerosene crisis.

Nana Suryana, chairman of the Indonesian Democratic Party of Struggle (PDI Perjuangan) faction in the legislative council, said his faction had sent a letter to Pertamina's local branch to protest against the kerosene crisis but it had yet to provide a response.

"Both Pertamina and the government have given the impression that they have no sense of crisis and that they do not care about the people's suffering caused by the prolonged economic and political crisis," he said.

Kerosene prices in the regency have soared to between Rp 1,800 and Rp 2,200 per liter.

A number of women in Banyumas, Central Java, have expressed their frustration over the kerosene crisis that has been affecting the regency for weeks.

Mrs. Nurul, 30, a resident of Kembaran village, said she had had to search for four hours to find two liters of kerosene.

"We have no firewood because the forest area is far away," she said.

Pertamina's branch offices in the provinces said they had not implemented any reduction in kerosene supplies but kept silent on why they had failed to take action against distributors.

Gugur Martono, head of the sales division at Pertamina's Distribution Unit in Cilacap, said a task force within the local police has been deployed to crack down on illegal activities in the local market but so far the operation has not succeeded in forcing distributors to supply local retailers.

Juliadi, spokesman for Pertamina's Distribution Unit in Medan, North Sumatra, said the market operation launched with the local police was now under way.

"We hope Pertamina will be able to deal with the kerosene crisis in the next three days," he said.