Jakarta (ANTARA News) - Indonesia has saved Rp21.38 trillion in fuel subsidies since the kerosene-to-gas conversion program was launched in 2007, state oil and gas company Pertamina said.

"The gross amount of subsidies saved from the conversion program was Rp32.07 trillion. But after it was reduced by the first phase of conversion packages totaling Rp10.69 trillion it declined to Rp21.38 trillion," Pertamina President Director Karen Agustiawan said on Friday.

When the program was for the first time launched in 2007 it still needed Rp200 billion in additional subsidies. However, the program could save Rp5.53 trillion in 2008, Rp6.92 trillion in 2009, and Rp9.13 trillion in the year to August 2010, he said.

The government has set itself the target of saving Rp13.63 trillion from the kerosene-to-gas conversion this year.

Karen said under the first phase of conversion program the company had distributed 3-kg gas cylinders and accessories among 45.558 million households in 16 of the country`s 33 provinces by August 2010.

Since early 2010, the number of gas cylinders and accessories distributed among the community accounted for 23 percent of the targeted 9.395 million, he said.

However, the volume of kerosene withdrawn in the year to August 2010 reached 4.499 million kiloliters or 73 percent of the target of 6.172 million kiloliters for this year, he said.

"The total volume of kerosene withdrawn since the conversion program was for the first time launched in 2007 has reached 12.139 million kiloliters," he said.

Meanwhile, gas supplies for the program had reached 4.061 million tons since 2007, he said.

He said over the period of three years since 2007 subsidized kerosene consumption had plunged to 20 percent of the overall kerosene consumption.

As a matter of fact, the conversion program had only covered 16 out of 28 provinces as originally planned, he said.
(Uu.S012/ H-NG /F001/P003)

Editor: Priyambodo RH
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