Distribution of Fuel Subsidy is not a Business but an Assignment

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netJakarta – The government and the House of Representatives has set a quotaof fuel oil (BBM) in the revised budget in 2014 amounted to 46 million kiloliters (KL). The amount distributed by the assignment of implementingEnterprise Regulatory Agency for Upstream Oil and Gas (BPH Migas),commencing from 1 January at 00.00 until December 31, 2014 at 24.00. BPH Migas Chief Andy Noorsaman Sommeng say, that the distribution of fuelsubsidies implemented by the Business Entity is not a business assignment.

“Distribution of Fuel Subsidy is not a business but an assignment. Why, because subsidized BBM is a public good,not a commodity or commercial goods bought and sold freely. If you want the non-subsidy business. It was really a business”, said Andy in his office recently.

Therefore, he asked the enterprises to build non-subsidized infrastructure. So when fuel subsidy is revoked, he(Business Entity) can be better because it is ready with the infrastructure.

“No more gas stations in investing entrepreneurs see a payback of how many kilo liters of fuel subsidies weredistributed, but ‘roh’nya it must be based on non-subsidized fuel”, he concluded.

As known in the 2014’s, there are several business entities implementing provision and distribution of fuelsubsidies, such as PT Pertamina (Persero) and two business entities companions, PT. Aneka Kimia RayaCorporindo. Tbk, and PT. Surya Parna Niaga.