Jakarta – The government intends to implement a subsidized fuel restriction policy starting next year, Energy and Mineral Resources Minister Darwin Zahedy Saleh says.

The restrictions are imperative because the government needs to set aside funds for other budget expenses, Darwin said.

"We noticed we should prioritize [restrictions] in Java and Bali first, because these two islands consume the most subsidized fuel, accounting for 59 percent of national consumption, or 24 million kilolitres of subsidized fuel, 53 percent of which is used for private vehicles," Darwin said Monday as quoted by tempointeraktif.com.

He added that the government was deciding to introduce the restrictions in January or April next year. "With this policy we could save up to 37.8 million kiloliters of subsidized fuel," he said.

In a similar tone, Finance Minister Agus Martowardjojo said that saving 37.8 millions kiloliters of fuel was equivalent to saving Rp 4.9 trillion from the state budget and was thus worth the effort.

Downstream oil and gas regulator BPH Migas chief Tubagus Haryono said he supported the plan but warned that the government would need to also produce clear schemes regulating which parties would still be allowed to purchase subsidized fuels and which parties would not.

"At the end of the day it is us who are in the front facing the public head-on. So, for us to be able to explain this policy to the public properly, we need clear and thorough regulations on this particular matter," he said.