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Indonesia to begin publicizing subsidized fuel cutting policy JAKARTA - The government will start familiarizing the public with its policy to limit subsidized fuel oil consumption next week, Deputy Energy and Mineral Resources Minister Widjajono Partowidagdo said.

"The government has formed a team for the familiarization effort and it will start working next week," he said. He said the familiarization campaign would be done among others through the print and electronic media.

Widjajono admitted the revised versions of Perpres (Presidential Regulation ) No 55/ 2005 and Perpres No 9/ 2006 on who was eligible for using subsidized oils had not yet been issued so far.

"But it will (be issued) soon. However the government actually already has a legal basis for it, namely the 2012 budget law." he said.

He said under the new policy, private cars would not be allowed to use subsidized oils as they would only be allocated for public transport and motorcycles. He said gas stations would sell more non-subsidized gasoline rather than subsidized ones.

He said gasoline stations that would be selling more subsidized oils would be the ones located along public transport routes. Motorcycles would also be served by separate stations to make cars unable to participate, he said.

Widjajono said the use of subsidized oils by public transports would also be limited using control equipment. Widjajono however admitted that irregularities may still happen but he believed the goal would be achieved.

He said the government would also improve public transport services so that private car users would switch to them and also encourage the use of liquefied petroleum gas in stages with priority to be given to public transports by providing them with subsidized converters.

"The project is ongoing and will be intensified," he said. The BBG (oil to gas conversion) program would also target private cars. "Later, people will have alternatives to choose from. For the time being they can use the Transjakarta bus service," he said.

He said the government would also increase the price of BBG to attract investors to the business. The government plans to implement the limitation of subsidized fuel oils starting on April 1, 2012.


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Posted in Economy @ 07 January 2012 14:45 CET by Blog Bot · 'Blog' RSS feed · permalink






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