Pertamina to reward police if they thwart fuel crime
Pertamina to reward police if they thwart fuel crime
The Jakarta Post, Jakarta
State-owned oil and gas firm Pertamina said on Monday that it
had proposed to the government to give the National Police a
reward if they were successful at foiling attempts to smuggle or
hoard fuel.
Pertamina downstream director Muchsin Bahar said that the
company was considering handing over half of the confiscated fuel
to the police as a reward.
Speaking to reporters at a media conference held to unveil
Pertamina's financial performance in 2001, Muchsin said that the
planned incentive was needed to help curb the widespread practice
of fuel smuggling and hoarding.
He, however, said that the incentive program had yet to be
agreed by both the government and the police.
Fuel hoarding, especially of kerosene, has become common
practice following the government's plan to raise fuel prices by
an average of 30 percent.
The hoarding of fuel has caused shortages in many provinces
and a surge in kerosene prices.
During the past couple of weeks, kerosene prices have soared
to Rp 1,200 (11.5 U.S. cents) per liter in many parts of the
country compared to the official price of Rp 400.
Pertamina has launched "market operations" aimed at restoring
the kerosene supply to areas hit by shortages, but so far, the
result has not been effective.
Muchsin said Pertamina expected the government not to further
delay the announcement of the hike in fuel prices, so as to bring
an end to fuel hoarding.
Separately, Coordinating Minister for the Economy Dorodjatun
Kuntjoro-Jakti said the government had decided to audit last
year's compensation.
The government has been criticized for not being transparent
in the use of compensation money, which was aimed at helping the
poor deal with the fuel price hike.
The government provided Rp 800 billion in compensation last
year.
It plans to provide Rp 2.2 trillion this year, but according
to the Minister of Energy and Mineral Resources, the amount might
be raised to Rp 2.8 trillion.