Index

 03 December 2006

 
Kalla expects House support for additional kerosene supply
Jakarta

Vice President Jusuf Kalla said Tuesday he was confident that the House of Representatives would agree with the government's decision to increase the supply of kerosene, which would result in higher subsidy spending than envisaged under the 2006 budget.

"Now the problem we are facing is not about the subsidy, but rather people getting kerosene, which is a basic need here and for which there's no substitute," he said after seeing off Indonesian pilgrims to Mecca at Soekarno Hatta International Airport.

The supply increase, which took effect Tuesday, is in response to the current shortages of the fuel in several parts of the country.

Kalla said he believed the House would set aside politics and approve the move given the importance of subsidized kerosene to the lives of low-income people.

Kalla is also the chairman of the Golkar Party, which forms the biggest block in the House.

During a meeting Monday evening at his office, Kalla ordered state oil and gas firm PT Pertamina to increase the kerosene supply by 100,000 kiloliters up until December. As a result, the full-year subsidized kerosene quota, set at 9.9 million kiloliters under the budget, will be exceeded.

Present at Monday's meeting was the director of the Downstream Oil and Gas Regulatory Agency (BPH Migas), Tubagus Hariono, and Pertamina's marketing and business director, Ahmad Faizal.

In previous politically contentious issues over the past year and a half, such as rice imports and last year's fuel-price hikes, the Golkar-supported government has managed to win the support of the House through intense lobbying of party leaders.

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