How Indonesia Prevents Manipulations over Subsidized Gas Price

Jakarta, Indonesia (News Today) - People’s Welfare Coordinating Minister Agung Laksono said the government is likely to raise the price of subsidized gas to prevent gas canister explosion incidents.

"We will raise the subsidized gas price because lowering the regular price would be too steep and we will also give coupons to consumers of subsidized gas. This is one of the options. We have not yet come to a decision, however," he said after a cabinet meeting that also discussed the issue here on Tuesday.

He said the option would be further discussed at a coordination meeting of the ministers concerned on Thursday and the results of the meeting would be reported to Vice President Boediono. Agung said efforts would also be made to help families in the poor category, for example, through distribution of subsidy coupons for them to buy the gas.

"What is important is we will not give add to the people’s burden, particulary the poor’s," he said without mentioning figures or the value of the coupons.

Raising the price of subsidized gas was only one way of reducing the disparity with the price of non-subsidized fuels, he said. He said another option was reducing the price of the non-subsidized gas to make it the same as that of the subsidized.

He said however that this option could create problems because the haves would also enjoy subisidy.

"The households that do not deserve subsidy will also enjoy it. This is not fair," he said.

In a national working meeting in Bogor recently the government had expressed its intention to eradicate the disparity in the price between the subsidized and non-subsidized gas to prevent certain people transfering subsidized gas from three-kilogram to non-subsidized gas canisters that had often led to canister explosion incidents.

"We in general agree to try to eradicate the price disparity," Agung said at the time.

In Jakarta subsidized gas is sold at Rp15,000 per three-kilogram canister while the price of non-subsidized gas in 12-kg cannisters is Rp75,000.

The government has withdrawn up to one million damaged or sub-standard 3-kg canisters from circulation as well as canisters that bear no SNI (national standard) logo so far to prevent explosion incidents. Agung said the withdrawal of non-standard canisters would be continued until the number reached nine million.

Source : kompas

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