Arientha Primanita – Lawmakers on Monday approved an additional subsidized fuel quota of 1.23 million kiloliters this year, adding to the country's subsidy spending by an estimated Rp 6 trillion ($624 million).
Members of the House of Representatives' Commission VII, which oversees energy and mineral resources, approved the government proposal during a meeting with Energy and Mineral Resources Minister Jero Wacik in Jakarta.
The legislators, however, demanded that the government immediately set up an online monitoring system called SPM, which is to be installed at gas stations, to limit subsidized fuel consumption by making sure it is enjoyed only by targeted users. The parameters of the SPM restrictions are still being discussed by lawmakers.
"We want the control system to start running in January," commission head Sutan Bhatoegana told the meeting, as reported by Indonesian news portal antaranews.com.
The government previously allotted Rp 137 trillion to subsidize 44.04 million kiloliters of fuel in the 2012 revised state budget, but the amount later swelled to Rp 216.8 trillion due to soaring global oil prices.
Just recently it proposed an additional quota of 1.23 million kiloliters, with the 44.04 million kiloliters of subsidized fuel expected to be all used up by Dec. 11.
Lawmakers estimate that the additional quota will cost Rp 6 trillion. Subsidized fuel consumption throughout the year is thus expected to reach a total of 45.27 million kiloliters. Indonesia consumed 41.7 million kiloliters last year.
Finance Minister Agus Martowardojo said the extra Rp 6 trillion would come from the 2013 state budget, but state oil and gas firm Pertamina will cover the cost up front before the budget is disbursed.
Meanwhile, Pertamina's marketing and commerce director, Hanung Budya, said the company had run successful tests of the SPM system at gas stations in Central and South Kalimantan.
"After the funding [for the system] is approved, we will announce the winner of the bid for the SPM system procurement in January 2013. We're targeting to install the system at all gas stations across Indonesia next year," Hanung said.
He added that SPM was expected to reduce subsidized fuel consumption by up to 1.5 million kiloliters annually.