REPUBLIKA.CO.ID, JAKARTA - The consumption limitation of subsidized fuels can be carried out by imposing a distance system and can be implemented in Jakarta, according to state-owned oil and gas company Pertamina.

Pertamina proposes that fuel refilling stations (SBPU) located within a 2-kilometer radius of the National Monument Square (Monas) in Central Jakarta would not sell subsidized fuel, Pertamina's Commercial and Marketing Director Hanung Budya said on Wednesday.

"We suggest that the SBPUs located within two kilometers from Monas should not sell fuel to private vehicles," Budya said.

In stages, after several months, the radius of the SBPU locations not selling subsidized fuel would be expanded to four kilometers, he added. On the other hand, subsidized fuel would still be available to public transport vehicles within that radius, he noted.

"Certain SBPUs will still sell subsidized fuel to public transport vehicles within the specified radius," he said.

He said if the mechanism works well in Jakarta, then the same could also be introduced in other regions. According to Budya, the basic idea of the system is to make it difficult for consumers to buy subsidized fuel. 

"By this initiative, we plan to make it difficult for non-public transport vehicle owners to obtain subsidized fuel. We believe that by implementing this system many vehicles will switch to non-subsidized fuel," Budya added.

The system is almost similar to that proposed by the Jakarta Deputy Governor Basuki Tjahaja Purnama, who wants to eliminate subsidized fuel in Jakarta. According to Budya, the proposal was a good idea but proper guidelines are necessary so that it will not create problems in other places when implemented.

"Its implementation must be taken into consideration," Budya said. He further added that Pertamina was ready to implement the policy of limiting subsidized fuel oil consumption, which was decided by the government.

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