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Jakarta's administration is urging the central government to
accelerate the phase-out of subsidized kerosene in the capital, despite
indications the city is not ready for the national program.
The call, made by Governor Fauzi Bowo on Tuesday, was similar to
comments he made in November.
"Hopefully, the government's plan to phase out the distribution of
subsidized kerosene will be running smoothly and can start by the end
of May," he said at City Hall.
But he warned that to meet targets, the phase-out needed to be matched
with the distribution of gas stoves and three-kilogram LPG cylinders to
households.
The administration expects more than two million households will make
the switch from kerosene to gas stoves in line with the government's
nationwide kerosene-to-LPG conversion program.
According to Jakarta Mining Agency head Peni Susanti, as many as 1.7
million gas stoves and LPG cylinders have been delivered to households
in Jakarta this month.
The program started in December 2006, with gas company PT Pertamina
playing a lead role in its implementation.
The government hopes the program will enable it to slash its spending
on fuel subsidies, which currently cost the state about Rp 40 trillion
(US$4.3 billion) every year.
Fauzi said the phase-out plan was initially scheduled for the end of
this month but was delayed due to "disturbances in distribution".
Peni said the disruption occured in five subdistricts, including
Kalideres and Cengkareng in West Jakarta, where many households are yet
to receive gas stoves and LPG cylinders.
She also hinted the city was not ready for the gas conversion program
as it "still lacked LPG-filling stations" to supply LPG to more than
200 retailers.
"There are only seven LPG-filling stations right now, most of which are
in North Jakarta. Ideally, we need at least five stations in every
municipality," she said.
Peni said two companies had expressed their willingness to build
another two LPG-filling stations in North Jakarta as the municipality
offered "idle lands with relatively low prices", but declined to name
the companies.
In response to Fauzi's statement, city councilor Nurmansjah Lubis of
the Prosperous and Justice Party (PKS) faction said he was worried the
city was not yet ready to be part of the national program.
"Many households have complained their stoves are faulty. These kind of
issues always appear when it comes to the implementation of the city
administration's sporadic and rushed programs," Nurmansjah, who is also
the secretary of Commission B on economic affairs, said
The program has encountered various hurdles, including defects reported
in some of the stoves and cylinders handed out.
There has also been widespread protests from low-income households,
which the program is targeting, complaining they cannot afford to buy
replacement cylinders.
Kerosene, which is sold in one-liter bottles, is considered to be more
affordable.
Three-kilogram LPG cylinders distributed in 2007
Municipality Number
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Central Jakarta 178,000
North Jakarta 163,546
East Jakarta 298,702
West Jakarta 294,949
South Jakarta 331,338
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Total 1,266,535
Source: PT Pertamina.
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