Jero insists no subsidized fuel for miners

By Godang Sitompul

Minister of Energy and Mineral Resources Jero Wacik recently stated that the government will socialize the policy of strictly limiting subsidized fuel to be used by mining and agriculture industries as of September 1, 2012.

"Some have shown their reluctance, this is why I decided to further enforce the program. Hopefully the result will be positive," he said Thursday in his speech at his office in Jakarta, referring to the Ministerial Regulation 12/2012 regarding Oil Based Fuel Utilization Control.

Jero nevertheless stated that there are exceptions for the program, "namely small scale mining, sand mines, including small scale plantations."

It is stated within the regulation that mines and plantations that fall under certain categories will be allowed to use a certain type of oil based fuel including gas oil, such as individual plantation with concession scale of below than 25 hectares, artisan mining as well as transport and sales of rock mining, including sand mining.

"They will be allowed to use gas oil for now until the government says otherwise," the ministry said in a statement.

Editing by Er Audy Zandri