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Controversy over Energy Fund Collection

Tuesday, January 19, 2016

Citing lack of money as the reason, the government is toying with the idea of levying funds from sales of fossil fuel to develop renewable energy. Energy and Mineral Resources Minister Sudirman Said publicly broached the idea when he announced the fuel price decrease late last December.

The energy resilience fund will be levied at Rp200 per liter for Premium and Rp300 per liter for Diesel fuels. Based on initial calculations, within one year, the amount of funds collected would reach Rp16 trillion. The plan immediately triggered controversy regarding which agency should be responsible for its management, the method used for collection, the relevant laws governing it and the fund's accountability.

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Citing lack of money as the reason, the government is toying with the idea of levying funds from sales of fossil fuel to develop renewable energy. Energy and Mineral Resources Minister Sudirman Said publicly broached the idea wh

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