President signs regulations on fuel restriction

President Susilo Bambang Yudhoyono has signed the regulation on subsidized fuel restriction, Koran Tempo reported Wednesday

Energy and Mineral Resources Minister Jero Wacik said in Jakarta on Tuesday that he would issue the ministerial decree soon after the announcement to regulate its implementation.

The minister added the regulation would be effective in April this year and it is imposed as an effort to lower increasing fuel consumption. He also said that state oil and gas firm Pertamina has provided infrastructure for non-subsidized fuel, or Pertamax, at 2,800 gas stations.

Separately, Gde Pradnyana, spokesman at upstream authority BPMIGAS said the agency has guaranteed gas supply for the program of oil to gas conversion, although he admitted that there was no adequate infrastructure yet.

Deputy Energy Minister Widjajono Partowidagdo said the government has allocated 1 trillion rupiah for the restriction program, including purchasing equipment for the conversion. (*)