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.
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