The Limitation Started from Jakarta

JAKARTA, KOMPAS.com - Consumption of subsidized fuel oils will be limited as of January 2011, Energy and Mineral Resources Minister Darwin Saleh said here on Friday. He said the limitation would first be carried out in Jakarta and its environs.

"Preparations have been made. We cannot immediately implement the program nation-wide all at once becuase it could affect too many activities," he said.
   
He said he had summoned the BPH Migas (oil and gas regulatory agency) and state-owned oil and gas company PT Pertamina to check the readiness of the technical implementation of the program.
   
"Based on that we saw that the best thing to do was to do what is the most possible to (namely implementing it in stages)," he said.
   
He said Jakarta and its sorroundings had been chosen for the implementation of the program because of the technical readiness of the city and its sorroundings and the availability of non-subsidized oils in the areas. He hoped the plan would be supported by the House of Representatives so that it would run smoothly.

The director general of oil and gas of the ministry of energy and mineral resources, Evita Legowo, shared the view saying "hopefuly the House would agree with the implementation of the program in stages in line with infrastructure conditions." Under the program the government would ban private cars to use subsidized gasoline which would be allowed only for public transport cars and motorcyles.

The government would launch the program first in Jakarta, Bogor, Depok, Tangerang and Bekasi to economize up to 500,000 kiloliters a year. The program will be expanded to cover Java and Bali as of July 1, 2011 to economize up to four million kiloliters in 2011.

In 2012 it would be expanded to cover Sumatra and Kalimantan and in 2013 to Sulawesi. Pertamina estimated the implementation of the program across Indonesia would economize up to 14.613 million kiloliters consisting of premium regular gas 11.026 million kiloliters and diesel oil 3.586 million kiloliters.

So, the subsidized fuel oil quota set at 38.591 million kiloliters for the 2011 budget would drop to only 23.977 kiloliters. The 23.191 premium quota set in the national budget would drop to 12.164 million kiloliters and diesel oil to 9.497 million kiloliters from formerly 13.085 million kiloliters.