JAKARTA - The quota of subsidized BBM in 2012 will run out by the end of the year. This lack of subsidized BBM is not due to the lack of planning, however it is because of high price disparity, economic growth, and not-saving energy behavior. Based on its distribution regions, of all 33 province in Indonesia, there are 23 province are excess of quota by having its average distribution realization of 107%, in which DKI Jakarta and West Java have the biggest excess distribution: each of 128% and 116%.
“This year over quota is because, if we view last year situation when the consumption of subsidized BBM was 41, 7 million KL, the number of cars reached almost 1.000.000 and motorcycles 7.000.000, industries increase, individual needs increase, so we will have equivalent additional comparing to last year becoming 45, 7 million KL. However, we have implemented saving energy spreading all over Indonesia. Since June, service cars of BUMN and BUMD in Jabodetabek areas shall not consume subsidized BBM. The regulation was also implemented in Java Bali since August and implemented for plantation and mining areas since September. So, due to those above-mentioned activities, the number is no longer 45, 7 million KL but 44 million KL. We have the record in State Budget that the plan was not in 45, 7 or 46 million KL but 40 million KL. Why? It was because we would increase the subsidized BBM price, but it did not happen. So, the 40 million KL remains becoming the agreement mentioned in State Budget, so we could not reach the number,” said the Vice Minister of EMR, Rudi Rubiandini in an interview with a national television station, Thursday (13/9/2012).
“The BBM quota in June has reached 21, 7 million KL. It means that we approximately need subsidized BBM for 43, 4 million KL plus one semester of cars and motorcycles addition, so we predict for 44 million KL of subsidized BBM. So we requested for more 4 million KL to DPR for this year,” said Rudi.
Especially for Jakarta, Rudi added, “The quota will probably run out by this September 15th, 2012. If it happens, normally by September 16th, 2012 people in Jakarta will have to consume non-subsidized BBM. So we have to find the solution of the problem.”
Rudi also added, the long-term energy security for our descendant, we have to utilize renewable energy. We add biofuel and bio solar for our energy resource. We utilize solar power, geothermal, and wind to electrify us. However, all these renewable energies will fade away and useless as long as the main competitor that is BBM, is still being subsidized causing high price disparity between subsidized and non-subsidized BBM.
“If having high price disparity, we could not even lead the premium consumer to pertamax. The pertamax consumers may be back to be premium consumers,” he said.
According to Rudi, what make the BBM volume increase are price disparity, the development increase and lack of saving energy behavior. Recently, the Government has performed saving energy. Overcoming price disparity, we have to wait whether we would increase the minimum price up to 6.000 gradually or not. “There are only dozen of countries having fuel price of 4.500, while the other hundred countries have more than 4.500. In ASEAN, countries having GDP less than Indonesia such as Thailand and Vietnam have had fuel price of 12.000 – 14.000. Indonesia is not only net importer but also subsidizing the fuel. It is okay, but do not make it too much; from 9.800 to be only 4.500,” said the vice minister.
The Government is not yet increasing subsidized BBM price by 2013. However, the consumption will be tightened, including also preparing the information technology for its supervision. (AK)



