Minister Questions Use Of Subsidized Fuel Card

Jakarta, Oct 17 (Antara) - State-owned Enterprises Minister Dahlan Iskan has questioned the proposal about using a fuel subsidy card and a radio frequency identification system (RFID) while purchasing subsidized fuels. "I have asked the strategic industry deputy of the Energy and Mineral Resources Ministry (ESDM) to contact the top officials of the ministry and seek information regarding the use of the fuel subsidy card and the RFID system," Minister Dahlan said after holding a leadership meeting here on Thursday. He said it was not clear why there were two systems - the card and the RFID device - since both are said to have the same objective of limiting the consumption of subsidized fuel. "There are officials who say using the non-cash fuel purchase card would be enough while others claim that RFID system would be used by installing corresponding equipment at the fuel stations," the minister stated, reiterating that the issue needed to be clarified as to which of the two systems would be used. "It should be clarified whether the vehicles which already have cards would still need to be fitted with an RFID device," the minister questioned. The government has assigned PT INTI with installing RFID devices. The devices have been installed at 263 fuel refilling stations in Jakarta. While a trial will be carried out in Java and Bali early in 2014, the system is expected to be fully implemented across the country by July 2014. Minister Dahlan said that state-owned oil and gas firm Pertamina and PT INTI were ready to accomplish the installation and purchase of the RFID devices. "However, clarification about the two systems should be made available now. It should not happen that we start using RFID but then find that we should also use another system," the minister said. In the 2014 state budget, the government and the House of Representatives (DPR) have set the subsidized fuel quota at 48 million kiloliters with a budget of Rp210.7 trillion, an increase from Rp199.9 last year.