Revisiting fuel-conservation, Indonesia

The market pricing mechanism and fiscal measures the government, state oil company Pertamina and State Electricity Company (PLN) have and will implement will help encourage fuel efficiency, cut fuel and electricity consumption and consequently government spending on the fuel subsidy.

The government announced last week all large industrial enterprises would be required to buy diesel oil and industrial fuel at market prices. Now only export-oriented businesses and shipping and big fishing companies will be subject to market prices. Small and micro firms and cooperatives still can get their fuel needs at subsidized prices.

The Jakarta Post