Jakarta. The government is considering limiting access to subsidized vehicle fuel based on engine capacity to reduce the strain on the state budget, an official announced on Friday.

Under the proposed policy, motorcycles and small cars would still be eligible for the subsidized gasoline known as Pertalite, which is currently priced at Rp 10,000 ($0.64) per liter. Subsidized diesel products like Solar and Biosolar are priced at Rp 6,800 per liter.

However, vehicles with larger engine capacities would be required to use non-subsidized fuel, according to Rachmat Kaimuddin, a deputy at the Coordinating Ministry of Maritime Affairs and Investment overseeing transportation.

“The draft policy is being finalized. Since we can’t freely raise the prices of subsidized fuel, the best approach is to regulate its distribution,” Rachmat told Antara news agency.

He noted that the policy would only affect about 7 percent of vehicles nationwide, but did not specify the engine capacity that would determine eligibility for subsidized fuel.

Public transportation vehicles will be exempt from the restriction, though the government is encouraging operators to transition to electric vehicles.

TransJakarta, a municipally-owned bus operator, has set a target to add 500 electric buses to its fleet by the end of the year.

Daud Joseph, TransJakarta’s operations director, said the company began incorporating electric buses in early 2022. After an initial trial with 100 buses, they found operating costs to be comparable to diesel buses, but with significantly reduced environmental impact. He added that their experience with electric buses has helped improve maintenance efficiency.

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