Source: Mustaqim Adamrah, The Jakarta Post, ,Jakarta | Sat, 12/06/2008 11:45 AM | Business
The government may be able to procure no more than 35 million liquefied petroleum gas (LPG) cylinders next year, only half of the number it had initially planned for its LPG-to-kerosene conversion program.
Ansari Bukhari, the Industry Ministry's director general for metal, machinery, textile and miscellaneous industries, said Friday the projected shortfall was due to the domestic industry's capacity to supply only 35 million in the two years since the program was launched.
"It will take a miracle for us to realize our plan to accelerate the program by distributing 100 million three-kilogram LPG cylinders by 2009," he said.
The government and state oil and gas firm PT Pertamina -- which is responsible for implementing the program -- have therefore revised down their target from 100 million cylinders to 84 million cylinders, he said.
With the estimated 35 million to be produced next year, plus the 35 million already in the market, Ansari said the government would not rule out importing more cylinders to meet the revised target.
"We'll import the remainder if the numbers are insufficient," he said.
According to Ansari, 42 million cylinders will be for households, with the other 42 million for retail stock.
The government rolled out the conversion program in December 2006. The aim of the program, which is expected to be completed in 2010, is to slash spending on kerosene subsidies.
Although the program has been moving slowly because of the shortage of cylinders and refilling stations, the government is accelerating the program.
The program's target is to replace the use of up to 2.1 million kiloliters of kerosene by the end of 2008. As of November, the replacement level had reached 1.8 million kiloliters.
Pertamina earlier set a target for 20 million recipients of LPG cylinders and gas stoves nationwide by the end this year and 42 million by next year.
The government may be able to procure no more than 35 million liquefied petroleum gas (LPG) cylinders next year, only half of the number it had initially planned for its LPG-to-kerosene conversion program.
Ansari Bukhari, the Industry Ministry's director general for metal, machinery, textile and miscellaneous industries, said Friday the projected shortfall was due to the domestic industry's capacity to supply only 35 million in the two years since the program was launched.
"It will take a miracle for us to realize our plan to accelerate the program by distributing 100 million three-kilogram LPG cylinders by 2009," he said.
The government and state oil and gas firm PT Pertamina -- which is responsible for implementing the program -- have therefore revised down their target from 100 million cylinders to 84 million cylinders, he said.
With the estimated 35 million to be produced next year, plus the 35 million already in the market, Ansari said the government would not rule out importing more cylinders to meet the revised target.
"We'll import the remainder if the numbers are insufficient," he said.
According to Ansari, 42 million cylinders will be for households, with the other 42 million for retail stock.
The government rolled out the conversion program in December 2006. The aim of the program, which is expected to be completed in 2010, is to slash spending on kerosene subsidies.
Although the program has been moving slowly because of the shortage of cylinders and refilling stations, the government is accelerating the program.
The program's target is to replace the use of up to 2.1 million kiloliters of kerosene by the end of 2008. As of November, the replacement level had reached 1.8 million kiloliters.
Pertamina earlier set a target for 20 million recipients of LPG cylinders and gas stoves nationwide by the end this year and 42 million by next year.
