REPUBLIKA.CO.ID, YOGYAKARTA -- Economist urges government to issue a regulation that limits the number of foreign gas stations in Indonesia. The move is expected to speed up domestic fuel business.

"Without the regulation, foreign gas stations such as Shell, Petronas or British Petroleum (BP) will own domestic market," Economist from Gadjah Mada University (UGM), Sri Adiningsih, said on Monday, December 22.

With government decreasing subsidized fuel, foreign gas station will be more aggressive to grab domestic market. Adiningsih said they would offer competitive price with maximum service. "We cannot let them take the advantage of fuel price hike," she said.

The current Laws on Oil and Gas provides scope to foreign oil companies to expand their business in Indonesia. ASEAN Economic Community (AEC) 2015 will give them more freedom.

Government must also push state-owned gas and oil company PT Pertamina to elevate its competitiveness and provide incentives to local oil and gas retails. Pertamina and local oil and gas retails must give their best service to the customers. "If we still depend on foreign sector, Rupiah will always high volatility," she said.

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