Revision on oil subsidy regulation to be ready this week
Thursday, January 12 2012 - 02:08 AM WIB
The revision of the Presidential Decrees No 55/2005 and No 9/2006 on the use of oil subsidy and retail prices of subsidized oil will be completed this week.
?It is still in my office. It is still being revised because there are some changes,? Energy and Mineral Resources Minister Jero Wacik told reporters following his meeting the National Economic Council (DEN) in Jakarta on Wednesday.
The minister said that the revision would be completed this week so that the government would have a legal base to support its plan to restrict the sales of subsidized fuels to private cars.
Under the restriction plan, which will be implemented in stages beginning in Java and Bali in April, subsidized fuels will only be allowed for motorcycles, public vehicles and fishermen.
The government has encouraged owners of privates cars to use cheaper fuel such as compressed natural gas (CNG). But for this, they should buy a conversion kit which will cost about Rp 15 million each.
Meanwhile public buses in Jakarta will receive free conversion kits from the government to enable them to use gas. The distribution of the free conversion kits will be carried out in stages depending on the availability of the kits.
Editing by Roffie Kurniawan