No New LPG Price Increase this Year: Pertamina

Despite suffering losses on the sales of non-subsidized liquefied petroleum gas (LPG), state oil and gas company PT Pertamina said Friday that there would be no further LPG price increases this year.

The statement negates a previous plan to incrementally increase the price of non-subsidized LPG every month until it reached market value.

Pertamina recently increased the LPG price by Rp 100 per kg, raising the price of the 12-kg LPG from Rp 69,000 to Rp 70,200 per canister. The 12-kg canister LPG is the most commonly used by households for cooking.

Pertamina currently provides four types of LPG canisters: 3 kilogram, 6 kilogram - only available in Bali and East Java, 12 kilogram and 50 kilogram. The government only subsidizes the 3-kg LPG canister.

The price increase triggered a public outcry as it negatively affected households and home industries.

Pertamina president director Karen Agustiawan said the company remained committed to its plan to bring the LPG price up to the market level, but no further price increase would be carried out this year.

"If the LPG price goes down, we will cut our price. If the LPG price goes up, we will increase our price. The *proposed upward adjustment to market price* increase will not be implemented this year, but next year," Karen said.

Karen hinted that the postponement of price increases was in response to public objections.

"The increase has been overexposed. In fact, the increase was only Rp 1,200 per canister which is far cheaper than the pack of cigarettes that people consume in a day," Karen said.

This year the company expects to suffer Rp 2.3 trillion of losses *this year* from the non-subsidized LPG business. Prior to the price increase, Pertamina said losses from the sale of non-subsidized LPG had now reached Rp 3,200 per kilogram.

The marginal Rp 100 per kilogram increase would only cut losses by Rp 100 billion by the end of the year, the company said.

Pertamina expects demand for LPG to steadily increase and rise above 2 million metric tons this year as more households became more accustomed to using the fuel, which is replacing kerosene.

For nearly two years the government has been embarked on a program to shift household dependence for cooking from kerosene to LPG in order to cut the use of fuel oil and the cost of government subsidies.

The government said recently that since the kerosene to LPG program was launched in 2007, it had saved as much as Rp 9.22 trillion in expenditure on fuel subsidies.

Six Month Economy Recover Sumbar

PADANG - Character hardworking people believed to be Chairman of the Minang Indonesian Employers Association (APINDO) Sofjan Wanandi would help the region's economic recovery after the earthquake. Even the national entrepreneurs are predicting, it takes about six months to restore the business world as the original West Sumatra.

In addition to providing physical assistance, the government is expected to prepare a capital program for economic recovery Sumbar. "About six months, economic conditions Sumbar will return as before. Now it's time we stood up. Bertangis No time-cry again," he said in the Governorates West Sumatra, on Sunday (11/10).

He himself, as a businessman convinced the public character of West Sumatra will not linger in the fall. When compared with Aceh and Yogja, he expects West Sumatra can also equal treatment. Where entrepreneurs are given capital between Rp 10 million or Rp16 million just so they could start again.

If the current recovery in terms of community physical and mental, after that, the government must also think to restore the business world. After that, the business capital needs to be strengthened by providing capital assistance. "So, we need to encourage the parliament to grant funding worth Rp 5, 6 trillion for the reconstruction of West Sumatra," he continued.

According to him, the economic recovery of West Sumatra had to be done quickly within the next few months. At least, within six months will be better with the support of all parties. Related pascagempa Sumbar economic recovery, the APINDO in West Sumatra is also intended to help to revive the economy Sumbar.

Meanwhile, some residents claim to be disappointed with the performance of the verification team to check the feasibility of people's homes after the earthquake. Because some of the verification, the team from 9 agencies was assessed not represent the real conditions in the field. The house was not considered citizens remain habitable habitable labeled.

Ria (32), RT 01 RW 10 Gunung Berok Ria (32), RT 01 RW 10 Jalan Bulan Rambun Mount Pangilun admitted Berok the concrete house was vanish due to the earthquake. The concrete bottom is broken, the walls and roof had collapsed most. But the immediate family to do simple repairs. Broken foundation organized to support the makeshift clapboard that had collapsed.
"Oddly enough verification assessment team is still habitable. And this house had collapsed and one with the land. It's just improved much," he told RPG, yesterday (11/10), pointing to a yellow paper taped to the wall and marked as suitable for habitation.

So did neighbors Ria, Hasbullah (55), two-storey house collapsed on top, walls, pillars and floor front bagin broken. Building the right hand was broken tops, and the horses just made of simple wood to prop up the tin roof on it. But the team still provide verification habitable condition carefully.

Disappointed with the results of such verification, direct Hasbullah tear and throw yellow paper bearing these habitable. "They have come from a technical institute and PT. Should be more keen to see what is suitable for habitation and which are not," he said. This sort of thing could have happened not only in Berok Mount Pangilun but other areas badly damaged condition.

West Sumatra Governor Gamawan Fauzi admitted his side was down 700 members of the verification team from a number of houses Higher Education (PT) to register and verify eligibility. The team will work for 14 days starting from Monday (5 / 11) until Ahadu (18/11) to come. Funds needed to verify the reach Rp1, 7 billion.

"We've Rp600 million," he said. Problem of citizen complaints against the results of the verification mention Gamawan PT and technical teams certainly know better than to assess the feasibility of the building. "We just do not know is why an independent agency be submitted to the PT," he said. A number of PT is involved in the verification team of University of Newcastle (Unand), University of Bung Hatta (UBH) and University Putra Indonesia (UPI).

Data verification team, said Gamawan, which will be used as a reference for post-emergency reconstruction. Gamawan also admitted confused with the complaints of the residents have not received logistical support.

Beleaguered Bank Indonesia Ready to Face the Music

JAKARTA -- Attacked from every corner over the Bank Century debacle, Bank Indonesia says it will welcome an investigation and allow law enforcers to arrest any official found to have abused their power in the Rp 6.76 trillion (US$676 million) bailout.

The statement comes in response to a call by the House of Representatives urging law enforcers to investigate allegations of violations by officials at the Financial System Stability Committee (KSSK) - which comprises the central bank, the Finance Ministry and the Deposit Insurance Corporation (LPS).

The House also urged the Supreme Audit Agency (BPK) to finish its ongoing audit of the Century bailout immediately, to track where the money had been channeled.

"We will be glad once the BPK audit is done and we can see where the money went, so the public's suspicions can be answered," BI deputy governor Budi Rochadi said Thursday.

"If any BI officials are found to have *misbehaved', then they must be arrested."

Budi's response echoes statements made earlier by Finance Minister Sri Mulyani, who chaired the KSSK when deciding to bail out Century.

The House questioned why the bailout, initially estimated at Rp 632 billion, had swelled to Rp 6.76 trillion.

During the KSSK meeting on Nov. 21 last year, Budi said, the central bank had said the Rp 632 billion was its estimate for the amount needed to raise Century's capital adequacy ratio (CAR) to 8 percent, while an addition of Rp 4.7 trillion was needed to serve as a liquidity buffer in the case of a bank run.

Even if the KSSK had decided not to rescue the bank and let it fold, Budi went on, the government would have spent Rp 6.4 trillion to cover the deposits under the deposit guarantee scheme.

The scheme guarantees all deposits under Rp 2 billion in one single account.

Five banks of a similar size to Century, as well as 18 others, might have been affected if Century had collapsed, thus creating a systemic threat, Budi added.

The BPK expects to finish its final audit on Century on Oct. 19, when BPK chairman Anwar Nasution will end his term.

Anwar said BI's weak supervision had led to the rescue measure, after poor management by Century's owners - Robert Tantular, UK national Rafat Ali Rivsi and Saudi Arabia's Hesyam Al Warraq - caused the bank to collapse due to bad loans and dubious securities.

Tantular has been jailed for four years by the Central Jakarta District Court, while Ali Rivsi and Al Warraq remain at large.

Century was established in 2004 from the merger of three troubled banks - Danpac, Pikko and CIC - after Anwar, a BI deputy governor at the time, considered it would be easier to oversee one bank, despite Pikko owning rotten loans and CIC owning junk bonds, said Heru Kristiyana, deputy director of banking supervision at BI.

by: JakartaPost

Pertamina Fuel Padang Stock Guarantee

JAKARTA - PT Pertamina (Persero) to ensure supply of fuel to Padang is still safe. Fuel distribution rights holders that have prepared measures to ensure the availability of Pertamina fuel depot, while protecting the distribution process. Currently, the resilience of stock at a premium ranging from transit terminals 16 days, 14 days diesel, kerosene 13 days, 10 days avtur.

Pertamina also has to prepare the barge and tanker soechi to become a floating storage. These tankers stationed in Muaro for fuel needs of Padang, which facilitate the distribution of fuel to affected areas. "We also have 10 units readies tank cars from Jambi, for the purposes of transporting fuel and avtur," says VP Pertamina Communications Basuki Trikora Son in Jakarta, Thursday (1 / 10).

Pertamina also divert supply points from Siak Depot / Depot Riau and Dumai. In addition, also prepared to provide post care services to the earthquake-affected communities. "We have a number of fuel filling stations in Padang, West Sumatra is still a lot that has not been operating. However, the supply of fuel has been secured," he explained.

To distribute the fuel in Padang and surrounding areas, Pertamina has set up an alternative route from the Maninjau-Lubuk Basung-Pariaman-Lubuk Alung, because the route from the east (Solok), direction South (the Gulf and the Gulf Bungus Kabung), north (Bukit Tinggi ) and point-Padang Bay Kabung very solid.

Tanker supply over the early morning depart from Depot Siak 4 units each with 20 KL premium, from Dumai Depot as much as 8 units of 154 KL tank with premium, 8 units of 90 KL tank with kerosene and 2 units of 44 KL tank with diesel.

Yesterday as many as 10 units of fuel tanker industry and is loading conjunct in Dumai Depot. From Depot Jambi 8 unit tank car carrying each 5 KL premium. Trapped tanker off point prioritized supply stations can not be supplied from the Gulf Kabung TT.

Pertamina is also preparing Emergency stations in various locations in anticipation of the condition of some stations that were damaged. In addition, Pertamina also has prepared the form of cash assistance, medical personnel and medicines were sent to Padang to help the team Pertamina in Padang. Pertamina also provide free of kerosene for public kitchen will be channeled to help the community.

Marketing and Commercial Director of PT Pertamina Achmad Faisal explains PT Pertamina (Persero) will add supply to the area avtur Padang, for flights to the region is expected to increase. "We will add supply to the area of Padang avtur given current flight will certainly continue to increase. Avtur supply will be increased from Dumai," he explained.

Faisal added to the current distribution of fuel to Padang is secure. "Until now there are 14 Fuel Filling Stations General (Gas Station) which is able to operate," he added.