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President Susilo Bambang Yudhoyono has asked state-owned oil and gas company PT Pertamina to review its policy on the price hike of 12-kilogram liquefied petroleum gas (LPG) canisters.
'I hope that the process to review the policy to increase the 12-kg LPG canister price can still be carried out through a mechanism and procedure that is regulated by the law,' he said on Sunday, as quoted by Antara news agency.
'I ask Pertamina and related ministers, who have been assigned by the law, to complete the review process within 24 hours,' he went on.
President Yudhoyono asserted that the ministers had to start conducting the review process this evening. The results of the review process must be consulted to the Supreme Audit Agency (BPK), on Monday morning, before it will be later announced to public.
'Tonight, they will have started to work and tomorrow morning, they will consult with the BPK [on the results of the review process],' he said.
'In midday on Monday, the corporation, or Pertamina, will have already completed the review process and can convey to the public on what Pertamina will do to tackle problems related to the 12-kg LPG canisters,' he went on.
Yudhoyono said a consultation with the BPK was needed to resolve the price problems because the agency's audit report was one of the reasons behind the price hike.
'Pertamina's policy to increase the price of 12-kg LPG canisters was mainly pushed by results of the BPK audit, which found that the company had suffered financial losses of Rp 7.7 trillion (US$631.4 million). The losses were primarily triggered by the low price of 12-kg LPG canisters,' said the President.
Unlike the 3-kg LPG canisters, he said, the 12-kg LPG canisters in fact did not receive a subsidy from the government.
The BPK also recommended that Pertamina increase the price of 12-kg LPG canisters to contain, or at least to reduce, its financial losses.
"A consultation with the BPK is needed so that any solution or measure taken by Pertamina related to the price hike will be eventually in line with the agency's audit results and recommendations." (ebf)
