Govt fuel consumption cut to boost motorcyclists` number
Tuesday, 24 January 2012 00:00
THE Indonesian government's plan to limit the use of subsidized fuel oils beginning April 1, 2012 will raise motorcycle sales at home, thereby adversely increasing subsidized fuel consumption by motorcyclists. This is because, as many have predicted, low-income car owners will likely turn to motorcycles, raising the consumption of premium gasoline which is subsidized by the government. In addition, the relatively affluent car owners will also likely turn to gasoline sold by efficient foreign oil fi rms. "The policy will boost motorcycle business and raise its sales by about 5 to 10 percent," Senior Sales Manager of PT Astra Honda Motor (AHM) Sigit Kumala said. He said that motorcycles would become alternative transportation means for the people amid the bad condition of the country's public transportation facilities, particularly in big cities. The government is planning to limit subsidized fuel consumption as of April 1, 2012. Under the new policy, private Cars would not be allowed to use subsidized premium gasoline which would only be allocated for public transport and motorcycles. Private Cars will then use non-subsidized pertamax gasoline whose price is about two times higher than premium gasoline. Subsidized premium gasoline is sold at Rp4,500 per liter while pertamax plus 95 is Rp8,850 per liter and pertamax 92 Rp8,600 per liter.
Through the program the government hopes to save 6.21 million kiloliters of premium gasoline so that the premium gasoline quota set in the 2012 state budget at 37.5 million kiloliters would be achieved. However, the policy will likely boost motorcycle sales and increase their consumption of subsidized gasoline. Sigit said his company predicted that motorcycle sales would reach 8.4 to 8.6 million units in 2012 or up from 8.043 million units in 2011. Director of Public Policy Study Center Sofyano Zakaria shared Sigit's view saying that the government's new plan would increase the number of motorcyclists. "The government should pay attention to the significant increase in the number of motorcycles in Indonesia," Sofyano Zakaria said. The increase in the number motorcycles would in turn increase their fuel oil consumption. Data showed that in 2009 there were 52.4 million motorcycles in the country. This number rose to 80 million in 2011. PNA/ANTARA
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