PDI-P urges probe into 'kerosene fee'

PDI-P urges probe into 'kerosene fee'

Tony Hotland, The Jakarta Post, Jakarta

The Indonesian Democratic Party of Struggle (PDI-P) wants an
investigation launched into the collection of a Rp 50 (0.5 U.S.
cent) fee for every liter of kerosene sold, as it is unclear
where the funds go.

The party sent a petition on Tuesday to the House of
Representatives leaders to invite the Corruption Eradication
Commission (KPK) to look into the case.

A letter issued by Minister of Home Affairs M. Ma'aruf on Oct.
3, rules the highest retail price for kerosene is Rp 2,275 per
liter comprising a base price of Rp 2,000, a certain profit
margin for retailers, transportation costs and an additional Rp
50 fee for "supervision and administration" purposes.

But House budgetary committee member from PDI-P, Ramson
Siagian, who also sits on Commission VII on energy, said the Rp
50 charge, which presumably would go to the government's coffers,
was never reported nor was it calculated during the deliberation
of the 2006 state budget, which was recently passed into law.

This "illegal" charge was identified on Monday during a
hearing between Commission VII and Minister of Energy and Mineral
Resources Purnomo Yusgiantoro and state oil company PT Pertamina.

"Thus, the commission concluded at the end of the hearing that
the letter of the home ministry should be revoked because it
violates the law," Ramson said.

Issued shortly after the new domestic oil prices took effect
on Oct. 1, the letter was addressed to all governors, regents and
mayors.

It was also forwarded to the President, the Vice President,
the chief welfare minister, the chief economic minister, the
finance minister and Purnomo's office.

In his calculation, Ramson said, at least Rp 90 billion had
been collected so far from this levy with an average of 900,000
kiloliters of kerosene being sold each month.

If this continues, he added, at least Rp 500 billion would
have been collected from the sales of next year's quota of 10
million kiloliters of kerosene.

"Such a levy should have been calculated as state revenue from
non-tax sources. But it was never reported during the 2006 state
budget deliberations. So where is it going to?" he questioned.

Ramson said energy minister Purnomo had acknowledged such a
levy during Monday's hearing, but claimed he was unaware that the
practice was in violation of the finance law.

"Besides, how could the government still impose such a levy,
however little it may seem, after the kerosene price has been
significantly raised from Rp 700? It's the poor we're talking
about here," the lawmaker said.

Neither the energy minister nor the home minister was
available for comment on Tuesday.

Amid skyrocketing global oil prices, the government raised in
early October the domestic oil prices by up to 185 percent in
order to reduce the fuel subsidy.

Fuel prices were also raised in March this year. The two
increases were met with strong public criticism and
demonstrations.