The government will import fuel-to-gas converter kits from Italy to help facilitate the nation's energy conversion plans to see more vehicles run on gas.
Ten percent of 25,000 converter kits that the government requires will come from Italy.
"Three state-owned enterprises will be in charge of producing the fuel-to-gas converter kits -- PT Dirgantara Indonesia, PT Pindad and PT Wijaya Karya. They will work together with the Italian kit producer," Hidayat said on Tuesday, as quoted by Antara news agency.
Hidayat said that Italian expertise has been sought so that Indonesia can eventually become an independent kit producer, adding that Italy is the biggest converter-kit producer in the world, accounting for 60 percent of global exports.
"The government wants national industries to be able to mass-produce kits within the span of six months, so that all demands for converter kits can be fulfilled nationally," Hidayat said.
Hidayat said that converter kit production has so far reached 3,000 units per month.
This year, the government plans to distribute 25,000 converter kits to government cars and public transportation vehicles to allow them to use gas-based fuels, as part of a program that is expected to cut the country’s subsidized-fuel consumption by 0.3 million kiloliters, worth Rp 1.5 trillion (US$163.46 million).
On Monday, the government signed a memorandum of understanding (MoU) between gas producers and regional administrations in Jakarta to supply 35.5 million standard cubic feet per day (mmscfd) of gas to Greater Jakarta, Palembang in South Sumatra and Surabaya, Gresik and Sidoarjo in East Java.
Currently, there are six compressed-natural gas (CNG) stations in Greater Jakarta and Surabaya, and 11 fuel stations providing liquefied gas for vehicles (LGV). Four more CNG stations are under construction in Palembang.
The government has issued an assignment letter to state-owned oil and gas company PT Pertamina to build 54 CNG stations and 108 LGV stations in Java and Bali this year.