Indonesia defers plan to limit sales of subsidized fuels

The Indonesian government has postponed a much-mulled plan to limit subsidized fuels distribution, which was supposed to be implemented beginning September 1, for an indefinite time, saying the policy is still “too drastic” to be implemented now, according to Energy and Mineral Resources Minister Darwin Zahedy Saleh. The minister said that the government would take other measures to ensure that the subsidized fuel consumption will not exceed the regulated quota. The state budget has capped the consumption of the subsidized fuels at 36.5 million kiloliters this year. But, based on soaring consumption in the first semester, actual consumption could exceed 40 million kiloliters by the end of this year, according to downstream oil and gas regulator BPH Migas. (September 8, 2010)