Gov't to Apply Closed LPG Distribution System in August  

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  • TEMPO.CO, Jakarta - The Energy and Mineral Resources Ministry announced that it will conduct a trial of the closed distribution system for subsidized liquefied petroleum gas (LPG) sometime in August or September in Batam.

    "After the trial in Batam, we will evaluate [the closed distribution system]," said Oil and Gas director general I Gusti Nyoman Wiratmadya at his office on Wednesday, July 29, 2015.

    According to Wirat, the government had planned to conduct the trial in July, but it was postponed due to Ramadan and Eid al-Fitr. Wirat added that another trial will be conducted in Tarakan, North Kalimantan, following Batam.

    Earlier, Pertamina marketing and commercial director Ahmad Bambang said that about 20 percent of non-subsidized LPG users had shifted to 3-kilogram LPG canisters as a result of non-subsidized LPG price hike that took effect on March 1, 2015.

    From January to March 2015, 0.67 metric tons of subsidized LPG had been used meet public demands. Bambang predicted that the subsidized LPG quota might not be enough if the subsidized LPG was not limited.