JAKARTA, Jan. 16 (Xinhua) -- The Indonesian government has targeted to increase oil production to 1.3 million barrels per day (bpd) and cut domestic fuel price subsidy to 10 trillion rupiah (1.1 billion US dollars) by 2009.

    The current oil production stood at 1.01 million bpd and subsidy topped 70 trillion rupiah (7.7 billion dollars).

    Vice President Jusuf Kalla has instructed Minister of Energy and Mineral Resources to take measures to achieve the target during a meeting Monday, leading economic daily Bisnis Indonesia reported Tuesday.

    The government offers incentives to lift oil and gas production by exempting investors from VAT during the exploration stage and imposing zero percent duty on import of goods related to oil and gas industries.

    "All regulations that hamper the efforts to achieve the target... need to be evaluated," the vice president was quoted as saying.