Public cars to get free gas converter kits: Govt

Bagus BT Saragih, The Jakarta Post, Jakarta, Mon, 01/09/2012

The government plans to distribute free natural gas converter kits to public transportation vehicles as part of the subsidized fuel limitation program, said Coordinating Economic Minister Hatta Rajasa on Monday.

"We have not decided the scheme for private cars yet but numerous possibilities of incentives are on the table. For instance, we can subsidize the loan interest [for those who buy the kits through credit]," Hatta told reporters at the Presidential Office.

State-owned aircraft manufacturer PT Dirgantara Indonesia is reportedly prepared to produce the kits and supply them to support the conversion program.

The government has announced the plan to limit the use of subsidized fuel by private cars on the islands of Java and Bali, starting in April.

The government has begun campaigning on the plan this week.

The Finance Ministry said the government has allocated Rp 900 billion (US$ 99 million) for the fuel-to-gas conversion program.

Part of the funds will also be used to support the development of new gas stations.

Hatta said that the government would prioritize the construction of new gas stations along the route of public transportation.

"Our target is to produce the kits and construct as many gas stations as possible," he said.