Gas conversion saves up to Rp 61.6 trillion

09 July, 2012 | Source: Antara News

The Indonesian government`s program of three kilograms liquefied petroleum gas (LPG) conversion from kerosene has saved up to Rp61.6 trillion from the state budget, said an official from the state`s oil and gas company, Pertamina.

(Hanung Budya)

 

"The figure is an accumulation since the program was started in 2007 to May 2012," said the company`s marketing director Hanung Budya, here Sunday.

There is an increase on the three kilograms LPG for public usage, since 2007, he said.

Within the period, the distribution has reached up to 53.9 million of canisters across 23 province of Indonesia, while the subsidized kerosene withdrawal accumulation reached 27.1 million kiloliters with 9.9 metric tons of subsidized gas.

Hanung said that in 2012, Pertamina targets the distribution of 2.3 million of LPG starter packs in five Indonesian province namely West Sumatra, Bangka Belitung, Central Kalimantan, Central Sulawesi and North Sulawesi amounting Rp672 billion.

"Until May 2012, the total sales of the three kilograms LPG reached 1.55 million tons from its quota of 3.606 million tons a year," he said.

According to Hanung, the LPG sales realization has an exceeding the target by 4.9 percent.

Meanwhile, until the end of 2012, the three kilograms LPG sales is estimated at 3.754 million tons, or "over" 4.1 percent of the quota of 3.606 million tones.


For 2013, Pertamina will distribute 2.361 million starter packs worth Rp659 billion excluding VAT and Income Tax.

The plan consists of the supply shortage in 2012 in Bangka Belitung, Central Kalimantan, Central Sulawesi and Southeast Sulawesi package worth as much as 670 000 Rp190 billion.

Then, the shortage in 2010-2011 in Aceh, East Kalimantan, South Kalimantan, West Nusa Tenggara, Sulawesi, and Gorontalo as many as 1.1 million package valued at Rp301 billion and sweeping request from North Sumatra, Riau, West Kalimantan, and West Nusa Tenggara as many as 591,000 package worth of Rp168 billion.

Deputy Director of the Institute ReforMiner, Komaidi Notonegoro said that although there were some constraints in the beginning, but then the LPG conversion program is running according to plan.

"This program has been quite successful. Evidently, people have been adapting and the program`s outreach has reached the national level," he said.

Looking ahead, the government should further optimize the supply of LPG from domestic refineries, Komaidi said.

The conversion program was not included in the government`s strategic plan, therefore the supporting infrastructure such as refineries are still limited, he said.

"It`s a work to be done for the government to provide the refinery in the future," he said.

In the meantime, importing LPG is still unavoidable, but still in conducting the efficiency strategy.


 

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