TEMPO.CO, Jakarta – The Downstream Oil and Gas Regulatory Agency (BPH Migas) has issued a circular number 937 on July 24, 2014 to curb the circulation of subsidized diesel fuel—locally known as Solar—in Central Jakarta, starting August 1, 2014.

“It [the restriction] will be enforced beginning tomorrow in Jakarta and we guarantee that there will be no problem,” BPH Migas Committee member Ibrahim Hashim told Tempo on Thursday, July 31, 2014.

The policy was made following a fixed quota policy in the Revised State Budget for 2014, decreasing the subsidized fuel quantity from 48 million kiloliters to 46 million kiloliters.

According to Ibrahim, Central Jakarta was chosen because the Solar consumption rate in the area was considerably low. Ibrahim added that Solar consumption would be higher in other areas, such as in North Jakarta and West Jakarta, due to higher number of industrial activities.

Ibrahim predicted there would be long queues at gas stations outside Central Jakarta ahead of the policy implementation. However, he said, it was just a matter of time that consumers would get used to the policy.

Ibrahim claimed that he had informed business units providing and distributing subsidized fuel. Besides, Ibrahim said, the policy was not solely made by the BHP Migas, but it had already been canvassed with the Finance Ministry and the Energy and Mineral Resources Ministry.

AYU PRIMA SANDI