Minister of Energy and Mineral Resources (ESDM) Wacik claimed there were five failures in running the program

Minister of Energy and Mineral Resources (ESDM) Wacik claimed there were five failures in running the program

Minister of Energy and Mineral Resources (ESDM) Wacik claimed there were five failures in running the program as a Minister. The majority of fuel oil (BBM).

"I confess there are programs that do not work I carried out for a Minister. But this will be improved in 2013," Jero said during a press conference EMR Performance One Year at the Ministry of Energy and Mineral Resources in Jakarta on Wednesday (26/12/2012).

According to Jero, most programs are not successfully implemented is indeed associated with fuel, either on production to distribution.

First, the conversion of fuel to use fuel gas (CNG) for vehicles. The plan was not carried out because the budget has not been approved by the BBG for the Ministry of Finance in the 2012 Budget Amendment.

In the Revised Budget 2012 has allocated funding program conversion to CNG fuel at Rp 1.8 trillion. The funds are planned for development and procurement of 33 SPBG 14 thousand converter kit.

Currently, the procurement process is still tender. Next year will involve the private sector to procure. Secondly, saving fuel.

Currently, subsidized fuel quota for the year 2012 amounted to 44.04 million KL has collapsed and had to add fuel quota of 1.23 million KL. "I do admit that it is difficult for people to save fuel," he added.

In addition, the government's ban on official cars for the use of subsidized fuel has also been started successfully. Although there are still stubborn and still use the subsidized fuel. Third, there is still fuel smuggling.

Communities with a heart to buy fuel at Rp 4,500 per liter and sold at Rp 10,000 per liter. In anticipation of this, the government will coordinate with the police. "I beg your understanding of society. This is difficult to catch the smugglers," he added.

Fourth, renegotiate mining contracts. Until now there has been no decision of the Chairman of the renegotiation of the Coordinating Minister for the Economy Hatta Rajasa.

However, for technical problems renegotiation is being conducted by the Directorate General of Mineral, Coal, but there has been no decision on the level of the head contract renegotiation.

To date, only 14 companies that are willing to renegotiate the contract entered into with the government of Indonesia. In mid-January 2013, the first phase will renegotiate the agreement signed.

"We have a lot to renegotiate. Yang has managed 14 (firm). They're okay," he added.

While for others, it is still ongoing and there is still a lot in the company renegotiate the contract. Fifth, production (lifting) of oil.

The government in fact until now targeting oil production reached 930,000 barrels per day. But apparently the government is only able to produce 860,000 barrels of oil per day.