Indonesian Political, Business & Finance News

Space for gas stations running out: Sarwono

| Source: JP

Space for gas stations running out: Sarwono

JAKARTA (JP): The scarcity of land in the city has become a
major obstacle to building new gas stations, Minister of
Environment Sarwono Kusumaatmadja said yesterday.

He said investors were struggling to find land to build new
stations.

"To solve the problem, the Jakarta administration is only
willing to issue permits for gasoline and diesel fuel filling
stations if the investors also build natural gas pumps," Sarwono
said after inaugurating a liquefied petroleum gas (LPG) station
in a Taxi Express pool on Jl. Veteran, Kebayoran Lama, South
Jakarta.

According to Sarwono, the city has 25 gas filling stations, 18
of which sell compressed natural gas (CNG) and seven LPG.

Some of the 153 diesel fuel and gasoline stations also sell
CNG and LPG.

Of 2.5 million vehicles on the city's streets, about 1,800 --
comprising 1,570 taxies, 150 private cars and 80 public buses --
use LPG and CNG.

The percentage of vehicles running on natural gas climbed
yesterday when 200 taxis in the Taxi Express fleet were
converted.

"The use of gas fuel is not only to support the Blue Sky
program but also to benefit people because of the low price of
the gas," Sarwono said.

The blue sky program was introduced by Sarwono last year to
reduce air pollution.

A liter of CNG costs Rp 270 (10 US cents) while LPG is Rp 570
per liter.

CNG is provided by PT Elnusa, a subsidiary of the state-owned
oil company PT Pertamina while LPG is distributed by the
privately run PT Otogas Karya Pratama.

Sri Hartati Sutowo, a director of PT Otogas, said yesterday a
LPG station cost Rp 500 million (US$175,438), excluding the cost
of the land, to develop and required at least 500 square meters.

"That's why we cooperated with public transportation companies
to build gas stations in their fleets' pools," Sri said.

Besides that, city taxis travel an average of 350 kilometers a
day, which would make the use of gas very economic, she said.

Three of the seven LPG filling stations are owned by taxi
companies, two by Citra Taxi, run by businesswoman Siti
Hardijanti Rukmana, and the Express Taxi one inaugurated today.
(jun)

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