Presidential regulation issued to boost use of natural gas for transportation
Thursday, November 19 2015 - 01:30 AM WIB
The Presidential Regulation No. 125/2015 replaces Presidential Regulation No. 64/2012 on the Provision, Distribution and Price Determination of Natural Gas as Fuel for Land Transportation, the Cabinet Secretary Office said in a statement on Tuesday.
Under the new regulation, the provision and distribution of natural gas in the form of Compressed Natural Gas (CNG) for motorized land transportation will be carried out in phases the countries.
The activities will be conducted by either state owned enterprises (SEOs) or private business entities directly appointed by the minister of energy and mineral resources. Private business entities must have facilities and infrastructures for the provision and distribution of CNG; and secure CNG supplies to be eligible for being appointed by the minister. SOEs and business entities appointed by the minister will get CNG allocations.
CNG filling stations will be built by SOEs using the state budget and/or their own budget; and by business entities using their own budget.
In order to accelerate the conversion from oil fuel to CNG in the transportation sector, governors/regents/mayors are obligated to support the program by among others speeding up the licensing process and land procurement for the development of CNG-filling stations; promoting the use of CNG for state-owned vehicles and public transportation. The price of CNG will be determined by the minister.
Meanwhile, the government will provide converter kits for state-owned vehicles and public transportation for free. The provision and installation of the converter kits will be carried out in phases. The provision and installation of the converter kit will be carried out by SOEs directly appointed by the minister using the state budget and/or their own budget. A vehicle can only get one-time free converter kit installation.
Editing by Johannes Simbolon