The Indonesian CNG Owners Association (Asosiasi Perusahaan CNG Indonesia – APCNGI) has released a proposal aimed at assisting Indonesia reduce its future energy requirements. Danny Praditya, APCNGI chair, informed NGV Global News that up to 200 compressed natural gas (CNG) refuelling stations are planned but that the association has called on the government for increased support for the natural gas vehicle industry and to allow increased participation in NGV program development by APCNGI.
The stations are planned for implementation over the next three years, as CNG distributors prepare to invest Rp 3 trillion (USD315 million) under the government’s oil-to-gas conversion program, with a combined capacity of 100 million standard cubic feet per day (MMSCFD). Praditya confirmed that this would potentially reduce consumption of petroleum fuels by 90 million litres per month, contributing to the government objective of limiting subsidised fuels and energy consumption.
24 stations are currently operated in Jakarta, Palembang, South Sumatra and Surabaya, East Java by APCNGI members. The new stations will strengthen numbers in Palembang, Jakarta and surrounds and East Java before spreading to other areas, and will include an option to co-locate with conventional fuel stations,
Praditya said the association was wanting more from government: “We want government to allow us [the private sector represented by APCNGI] to take a role on the NGV program as Pertamina or PGN’s counter part,” he said. (Pertamina is a State Owned oil & gas company. PGN (Perusahaan Gas Negara) is Indonesia’s primary and State-controlled gas distributor.) Thus far, the industry has developed without government incentives.
APCNGI is also calling for the removal of VAT (value added tax) and import duty from gas and various industry components, to encourage increased non-government investment. “We need to have clear game rules to develop gas fuel infrastructure in Indonesia. We need to know where we are going and what we have to achieve to save energy in the future,” he said, adding that standardization of fuel price across the nation would also make the fuel more attractive.
(This article primarily compiled using information supplied by APCNGI)