Govt to reduce 35 percent of its oil imports

The government will reduce its oil imports by between 30 to 35 percent following a big jump in crude oil prices, the Koran Tempo reported on Thursday.

The oil prices have touched US$75 per barrel recently.

?This will be implemented because raising oil prices is not popular, while fuel subsidy amount is not enough (amid rising crude prices),? State Minister of National Development Planning Paskah Suzetta said on Wednesday after meeting with Vice President Jusuf Kalla.

The alternative is to save oil by reducing its consumption. One of the measures include restricting the use of private cars with engine capacities of more than 1,600 cc.

The government will study legislation on energy conservation in other countries, including Japan. As Indonesia is mulling the enactment of new legislation on fuel-saving measures.

?People must also have a discipline to save fuel, which has become an expensive commodity,? Paskah said.

Meanwhile, Minister of Transportation Hatta Radjasa said that the transportation sector consumes 59 million tons of fuel per year. Around 80 percent of this fuel is consumed by vehicles.

That?s why, according to Hatta, there is a need for diversification of energy from oil to gas.

He said his ministry would provide Rp 40 billion (US$4.4 million) this year to provide free converters to public transportation vehicles to allow them to switch from gasoline to compressed natural gas (CNG). (*)