REALIZATION OF FUEL SUBSIDY REACHES RP105.9 TRILLION

Jakarta, Oct 24 (ANTARA) - The realization of fuel oil subsidy up to October 15, 2008 had reached Rp105.9 trillion or about 83 percent of the ceiling at Rp126.8 trillion, a senior finance ministry official said.
"The realization of fuel oil subsidy has reached Rp105.9 trillion, or about 83 percent of the Rp126.8 trillion ceiling," Treasury Director General of the Ministry of Finance Herry Purnomo said here on Friday.
In the meantime, the realization of electricity subsidy reached Rp49.1 trillion or about 81 percent of the set budget of Rp60.2 trillion.
"The figure is similar to the power subsidy realization recorded up to September 26, 2008, meaning that since September no disbursement for subsidy has been made yet," he said.
In the 2008 revised state budget the total allocations for subsidies amounted to Rp234.41 trillion.
These subsidies included Rp126.82 trillion for fuel oils, Rp60.29 trillion for electricity, Rp8.59 trillion for food subsidy Rp7.81 trillion for fertilizers, Rp1.02 trillion for seeds, Rp1.73 trillion for public service obligations (PSO), Rp2.15 trillion for program credit interest susidy, Rp500 billion for cooking oil through market operations, Rp500 billion for soybean and Rp25 trillion for tax subsidy.
The fuel oil subsidy calculation is based on the premium volume parameter of 16.98 million kiloliters, kerosene 7.56 million kiloliters, kerosene-LPG conversion volume at 2.01 million kiloliters and a 9 percent alpha.