REPUBLIKA.CO.ID, JAKARTA -- Ministry of Energy and Mineral Resources estimated that kerosene conversion to liquefied petroleum gas (LPG) managed to save funds up to 85 trillion IDR. Director of Downstream Oil Gas Business Development, M Hidayat said the figure based on conversion implementation in period of 2007 to 2013.
The policy aimed to reduce dependence on subsidized fuel, especially kerosene. It also aimed to press fuel subsidy and minimize deviation of subsidized kerosene, as well as distribute fuel subsidy efficiently.
Government plans to distribute 2.1 million units of 3 kilogram (kg) LPG cylinders, consisted of 1.7 million new packages and 400 packages that have not yet divided last year.
"We expect that 2014 is the last year of conversion implementation from kerosene to LPG," Hidayat said on Tuesday.
He explained that not all regions in Indonesia, particularly in eastern Indonesia had implemented LPG conversion. Some areas are not economical to implement LPG conversion.
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