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s part of the plan to convert buses to use compressed natural gas (CNG), the Jakarta administration sealed a deal on Thursday with state-owned oil and gas company PT Pertamina, which will ensure the fuel supply.

Governor Joko '€œJokowi'€ Widodo, Energy and Mineral Resources Minister Jero Wacik and Pertamina president director Karen Agustiawan were present at the signing ceremony, which was conducted at a gas refueling station (SPBG) in Jelambar, West Jakarta.

Jokowi said the administration was ready to support the central government'€™s plan to promote the widespread use of gas rather than gasoline, as it was cheaper and friendlier to the environment.

'€œThere'€™s nothing wrong in shifting to gas,'€ he told reporters after the signing.

Jokowi praised Pertamina for preparing the SPBGs and four mobile refueling units (MRU) to serve Jakarta buses.

The city is in a tender process to procure 450 new gas-fueled Transjakarta buses and 800 minibuses by the end of this year, and another 1,000 and 3,000, respectively, by the end of 2014.

'€œWe are also preparing to convert 3,000 bajaj (three-wheeled taxis) every year to use gas, and gradually convert all of our official cars as well,'€ the governor said.

According to Jokowi, the cost of using gas was one third that of using gasoline.

He cited a report that stated bajaj drivers would only need to spend Rp 20,000 (US$1.72) on gas per day as compared to Rp 60,000 on gasoline.

Meanwhile, Karen said that Pertamina was currently able to supply 18.1 million standard cubic feet per day (mmscfd) of gas to customers, provided by several production sharing contract (PSC) holders.

As of now, the use of Pertamina'€™s gas, named '€œEnvogas'€, only reaches 4 mmscfd. She said the company was ready to build infrastructure to increase the supply.

'€œTo ensure the continuity of supply in the long term, we are looking for more contract holders,'€ Karen said.

From Pertamina alone, Karen said the company would have 10 new gas refueling stations by next year, adding to the existing 10 SPBGs.

Besides that, the company was also expanding its gas pipeline by 22.2 kilometers across Greater Jakarta, which will be funded from the 2014 state budget.

'€œWith this [program], we can reduce the government'€™s burden vis-a-vis the fuel subsidy and provide eco-friendly energy for a better environment,'€ she said.

To convert gasoline-fueled vehicles to use gas, a converter kit needs to be installed.

The Energy and Mineral Resources Ministry is conducting a tender process to mass produce them for the public.

Besides this program, the ministry and the city administration are also preparing to convert the Bantargebang landfill site in Bekasi, West Java, into a waste power plant.

The groundbreaking would take place next month, Jero said.