Indonesia aims to end fuel subsidy for private cars

The Indonesian government is aiming to end the use of subsidized fuel by private cars by 2013, starting with Jakarta in January, officials said. The move could add to inflationary pressures, reduce demand for fuel imports into Asia’s top gasoline buyer and could crimp surging demand for new cars. The new regulation, which still requires parliamentary approval, would first be implemented in Jakarta and the surrounding area before moving to Java and Bali island in mid-2011, said Djaelani Sutomo, marketing director of state owned oil and gas firm PT Pertamina. The government believes it can implement the new regulation all over Indonesia by 2013, he said. (December 2, 2010)