In the last two years, no converters have been imported."
Jakarta (ANTARA News) - Finance Minister M. Chatib Basri backs the accelerated implementation of the oil-to-gas conversion program for controlling oil subsidy, which is slated to reach 48 million kiloliters in 2014.

"The program will now be implemented. Converters need to be manufactured. In the last two years, no converters have been imported," he stated after a meeting with Energy Minister Jero Wacik, here on Friday.

He noted that the Finance Ministry will support the Energy Ministry in its endeavor to import converters by allocating Rp5 trillion for the implementation of the energy conservation program in 2014.

"We could have imported converters last year, but the decision came in too late, in October or November, while the budget allocated for it was not a multi-year one. Therefore, we plan to import converters this year," he added.

In the near future, the Ministry of Energy has pledged to conduct closed distribution in a bid to control the consumption of subsidized oils by private cars.

"The state-owned oil and gas company Pertamina has already provided Radio Frequency Identification (RFID) for subsidized fuel users as a means to identify consumption. The Energy Ministry will evaluate ways to control consumption. This will be carried out, but I do not know the commencement date," he noted.

In the interim, Jero Wacik remarked that the preparations for the development of renewable energy sources, such as natural gas and green coal, will be crucial because oil lifting have shown a steady decline.

Oil imports lay a heavy burden on the state. Hence, converting oil to gas and renewable energy sources is of prime importance. Green coal development must also be done on a massive scale, so that our dependence on oil is reduced, he claimed.

Jero stated that the construction of oil refineries needs to be accelerated and will offer another solution for the government to speed up the provision of energy supply to meet the rising demands and to anticipate the growth of the automotive industry.

"We will also push for refinery development. Unless we build more refineries, the challenges will be bigger. The current oil prices are very high and we need to be more realistic. In view of this, the development of renewable energy sources is essential," he explained.***2***

Reporting by Satyagraha

(H-YH/INE/H-YH)

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