REPUBLIKA.CO.ID, JAKARTA -- The Indonesian government has still not made a decision on introducing restrictions on the use of subsidized fuels, Deputy Minister of Energy and Mineral Resources Susilo Siswoutomo has said.
"We have no plan to limit the use of subsidized fuels in the near future. The plan was to limit the use of subsidized fuel to 0.7 liters for a motorcycle and three liters for a car," he said here on Friday.
However, no date has been set for implementing the plan, he added.
"It may be implemented in the next few years," he said.
Nevertheless, the government will continue to strictly monitor the use of subsidized fuels, he added.
The funds available from the reduced subsidy burden were to be allocated for infrastructure development, the minister pointed out.
"As such, the government does not expect to exceed the budget for fuel subsidies. If someone has a luxury car, it must not use subsidized fuels," he said.
In a related development, the government plans to introduce a non-cash fuel purchase scheme and a subsidized fuel monitoring and control system (SMP).
"The non-cash fuel purchase scheme is ready to be implemented. We are awaiting a formal regulation to implement the scheme," he noted.
The Downstream Oil and Gas Industry Regulatory Body (BPH Migas) is in the process of drafting the regulation, he said.
The legislation will be based on the Energy and Mineral Resources Ministry Regulation No.1/2003 on the Control of Fuel Consumption, he added.
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