Indonesia Considering Compulsory Fuel Conservation Measures
26 April 2006
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Jakarta Post. The Indonesian government is considering the enactment of new legislation instituting compulsory fuel-savings measures because the voluntary energy conservation program it encouraged last year has proven ineffective.
The government will study legislation on energy conservation in other countries, including Japan, to ensure that the new Indonesian legislation is more effective, according to State Minister for National Development Planning Paskah Suzetta.
“Voluntary fuel conservation campaigns have not been effective. They need to be made compulsory,” said Paskah after meeting Vice President Jusuf Kalla.
He reiterated that the government would renew its energy-conservation campaign this year through such things as restricting the use of private cars with engine capacities of above 1,300 cc.
“The government hopes to reduce subsidized fuel consumption by between 30 percent and 35 percent this year through an intensive fuel-saving campaign,” said Paskah, without going into the details.
The transportation sector consumes around 48% of the subsidized petroleum-based fuels.
While Indonesia is still a member of the Organization of Petroleum Exporting Countries (OPEC), it became a slight net importer of oil in 2004, and its oil production has continued to decline. (Earlier post.)
With global oil prices now hovering at above US$70 per barrel, the government is concerned that the allocated subsidy for oil-based fuels will be exceeded again this year, forcing the government to cut subsidy spending by raising fuel prices.
After the government raised prices last year in response to the spike in oil prices, the Indonesian economy—Southeast Asia’s largest—slowed its rapid growth.
Separately, the Transport Ministry said that it will provide Rp 40 billion (US$4.4 million) this year to provide free converters to public transportation vehicles to allow them to switch from gasoline to compressed natural gas (CNG).
State-owned Pertamina began developing jatropha biodiesel last fall and is beginning test marketing of a diesel-palm oil blend.
Our "government" should be doing this also. After all, there's a war on.
Where is the rationing.
I wonder how many americans would wonder if something like this happened?
Posted by: Lucas | 27 April 2006 at 04:49 AM
Cheers to Indonesia!
Far be it for the world's superpower to notice what other countries are doing, and wonder if they know something we don't..
Posted by: Charlie | 27 April 2006 at 07:25 AM
The U.S. doesn't directly subsidize fuel costs like this. Countries that do are going to be clobbered by higher fuel costs. China is one, IIRC.
Posted by: David | 27 April 2006 at 09:57 AM
Indonesia was an
Oil Exporter in 2004
and became and
Oil Importer in 2005
since their production plunged and consumption increased.
They have lot of nat-gas and should increase CNG powered vehicles.
Posted by: Max Reid | 27 April 2006 at 10:08 AM
Has anyone heard of this new Fuel Pill put out by a company BioPerformance? If so what have you heard and what do you think. It seems this can be a solution to a number of the fuel problems. I found a website on this pill at http://www.americanfuelpill.com
Thanks
Tom
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