Indonesian Government Told to Cut Import Duties on CNG Converter Components

The government needs to reduce the excessive import duties for components used to produce compressed natural gas (CNG) in order to lower CNG prices and boost demand, CNG observer Erwin Wijaya said on April 18, 2011.

He said the components included tanks and small pipes, which were part of a system in a CNG-fueled vehicle that could convert oil-based fuels to natural gas.

"The components normally cost between Rp 13 million (US$1,495) and Rp 14 million. If the government applies a special regulation, such as reducing the [CNG] component import duties, the costs could drop to Rp 7 million," Erwin said.