WB, ADB financing model under fire

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[ Jakarta Post ]

Riyadi Suparno ,  The Jakarta Post ,  Nusa Dua, Bali   |  Mon, 05/04/2009 2:07 PM  |  Headlines

Why do the World Bank (WB) and the Asian Development Bank (ADB) finance coal-fired energy instead of geothermal and solar energy, and why do they finance the development of roads and not railway lines?

Emil Salim, a former minister for the environment during Soeharto's time, has the answer.

"The key is you pick up projects that are helpful in reducing *poverty and unemployment*, and you go away from investments that are climate resilient," Emil told officials from the ADB and the WB at a seminar on climate change on Sunday.

Emil suggested the ADB and the WB follow the path of Norway in selecting investment projects. Norway, Emil said, did not make investments in tobacco, sugar, salt and other industries that are unhealthy and even reduce the quality of life. "Can't the World Bank and ADB devise similar things: No investment in climate endangering activities? That's missing in the World Bank and ADB."

Salvano Briceno, director of the United Nations' International Strategy for Disaster Reduction, concurred, saying that no banks and even no governments have given priority to reducing risks and vulnerability to climate and disaster in their project financing.

The majority of money, he said, goes to projects with no risk reduction, which makes them prone to disasters. Worse, much of the money goes to responses after disasters happen, i.e. to projects to rebuild houses, bridges, roads and other destroyed infrastructure.

"The reason money goes to the response is because it gives great visibility to political leaders. It's what we call the CNN syndrome. No better time to advertise your works than when a disaster happens. And you have assured spots on TV. But you don't have it when you build schools, when you built hospitals."

He suggested that the World Bank and ADB start advising governments to incorporate environment, risk and vulnerability to disaster measures into their projects.

In response, ADB vice president for knowledge management and sustainable development Ursula Schaefer-Preuss said that the bank had addressed environment and climate change in its long-term strategic framework of development. The ADB, she added, had even established a special fund generated from its own income to finance CO2-reducing projects.

But she acknowledged the amount was very small.

J. Warren Evans, director of Environment Department at the World Bank, noted that if the bank incorporated the environment factor into all of its projects it would increase the cost of projects, and it's unclear who should pay the difference.

Most likely project owners and the governments of developing countries, would not be willing to absorb the added environmental costs, he said.

He suggested the issue be discussed and negotiated at an international level to help resolve the problems; at the upcoming climate change negotiation in Copenhagen, later this year, for instance.

The problem is, financing climate change adaptation is not yet on the table for Copenhagen. Financing for climate change mitigation, which is already incorporated in the Kyoto Protocol, is however.

Evans predicted it would be an uphill battle to simply include financing adaptation into the climate change conference agenda in Copenhagen. But, it's worth a try.

UPDATE 1-Indonesia says plans coal buffer stock

[ Reuters ]

JAKARTA, Nov 10 (Reuters) - Indonesia, the world's top exporter of thermal coal, plans to put in place a coal buffer stock to secure supplies for domestic power plants, the energy minister said on Monday.

Coal for the buffer stock would be procured by revising a policy so that producers pay royalties using coal supplies, Minister Purnomo Yusgiantoro said.

The policy is expected to affect all coal producers, including companies such as PT Bumi Resources Tbk (BUMI.JK: Quote, Profile, Research, Stock Buzz), Indonesia's largest coal producer and PT Indo Tambangraya Megah (ITMG.JK: Quote, Profile, Research, Stock Buzz), a unit of Thailand's Banpu PCL BANP.BK.

"We are considering developing coal buffer stocks and PLN will be authorised to manage it so that when there's a supply problem, it won't cause a panic," Yusgiantoro said, referring to state electricity firm PT Perusahaan Listrik Negara.

The government has said earlier this year that it was looking at swapping cash royalties for coal stocks to ensure domestic supply.

Under the current scheme, the government gets 13.5 percent of miners' total coal supplies. Miners have to return the proceeds from the sale of this coal back to the government.

"We will be able to apply the buffer stock once the policy on swapping cash royalties into coal supplies is completed," Bambang Setiawan, director general of mining, geothermal and coal at the ministry, said at the same news conference.

The energy minister said Indonesia may be able to get around 30 million tonnes of coal for buffer stocks under the plan.

Disruptions in coal shipments partly due to bad weather caused blackouts in Java and Bali, the two main commercial islands, earlier this year.

Last week, PLN was quoted by the state Antara news agency as saying it planned to import coal from Australia to increase stocks ahead of the rainy season due to higher local prices and dwindling stocks at its four major power plants.

But the firm later denied the plan and said it would focus on seeking supplies from domestic producer.

According to Setiawan, most domestic power plants currently use sub-bituminous coal with low heating value and the new policy should enable the country to have better quality coal by blending different kinds of coal quality.

PLN has said it would need more than 40 million tonnes of coal in 2009 up from about 35 million tonnes this year as three new coal-fired power plants start operating.

Indonesia coal output is expected rising to 240 million tonnes in 2009 from 235 million tonnes this year, according to date from the industry-backed Indonesian Coal Mining Association. (Reporting by Fitri Wulandari and Muklis Ali; Editing by Ed Davies)

Indonesia May Cut Tin Output If Price Keeps Dropping

[ Bloomberg ]

By Naila Firdausi and Bambang Dwi Djanuarto

Nov. 3 (Bloomberg) -- Indonesia, the world's largest tin exporter, may reduce production if the price extends its decline, an Energy and Mineral Resources Ministry official said.

``Output will be less than 90,000 tons this year,'' Bambang Setiawan, director general of coal and mineral resources, said in an interview today. ``If the price keeps tumbling we'll talk with local governments and producers on their output quotas and we'll have to tighten them.''

Tin, mostly used in soldering and food cans, has slumped 46 percent from a record $25,500 a ton in May on concern the global credit crisis would push the world economy into recession and reduce demand for commodities. The price slump will probably curb investment and delay new projects, Peter Kettle, research manager of ITRI Ltd., a producer-funded group, said Oct. 29.

``It will definitely have some impact if Indonesia cuts output as they and China are the biggest producers,'' said Pang Ying, an analyst at Shenzhen Rongtuo Trading Co. ``The market will be watching Chinese supplies closely. If these drop too, we could see prices bucking the general downtrend.''

PT Timah, Indonesia's largest tin mining company, may produce 45,000 tons of refined tin this year, while PT Koba Tin, a unit of Malaysia Smelting Corp., may make ``less than 10,000 tons,'' Setiawan said in Jakarta.

Timah Corporate Secretary Abrun Abubakar said Oct. 22 that the company may produce 45,000 tons. That was 6.3 percent down from an August forecast by company president Wachid Usman.

Lower Production

Koba Tin said Oct. 21 full-year production was already scheduled to be half the original target of 15,000 tons. In the 10 months through October, output totaled 6,000 tons, according to company president Kamardin Md Top.

Indonesia's small tin smelters have already agreed to halt production to help stem the price decline. All nine members of PT Bangka Belitung Timah Sejahtera, a group set up in 2007, agreed to stop output, Ismiryadi, a member of the board of commissioners, said in an interview Oct. 21. The group produces about 3,000 metric tons a month.

``Today some of the once probable projects are now only possible, while many previously possible projects have already been postponed or canceled,'' ITRI's Kettle said at a conference in Istanbul last week.

The metal is heading for a third consecutive year of supply shortfall, Kettle said. The deficit may reach 20,700 tons, compared with 2,500 tons last year, he said. That would be more than five times larger than existing stockpiles monitored by the London Metal Exchange.

Tin for three months delivery advanced 2.5 percent to $13,732 a ton on the London Metal Exchange today.

Pemerintah Tetapkan Acuan Tarif Listrik Panas Bumi

[ ESDM ]

JAKARTA - Pemerintah menetapkan biaya pokok penyediaan (BPP) sebagai acuan tarif tenaga listrik dari panas bumi untuk tahun 2008.

Direktur Jenderal Listrik dan Pemanfaatan Energi (LPE) J Purwono mengatakan, besaran tersebut diajukan PT PLN (Persero). "Jadi tidak merugikan," ujarnya di Jakarta kemarin. Purwono menambahkan, BPP ini juga dapat dijadikan acuan untuk penetapan tarif listrik dari bahan bakar energi terbarukan lainnya, seperti bahan bakar nabati (BBN), hydro, dan Banyu.

Di samping itu, lanjut dia, BPP tersebut juga berlaku bagi pengusahaan pembangkit listrik tenaga energi terbarukan skala menengah dan pembangkit lainnya berskala kecil. Purwono menjelaskan, harga BPP itu tercantum dalam lampiran Peraturan Menteri ESDM No 269-12/26/600.3/2008 tentang BPP Tenaga Listrik Tahun 2008 yang disediakan PT PLN tertanggal 9 Juni 2008.

BPP itu terdiri atas tegangan tinggi (TT), menengah (TM), dan rendah (TR). Setiap wilayah, kata dia, biaya yang ditetapkan berbeda-beda. Untuk sistem Jawa-Madura-Bali mencapai BPP untuk TT mencapai Rp783 per Kwh. Sementara untuk TM antara Rp849-Rp859 per Kwh, dan TR Rp1.011-Rp1.030 per Kwh.

(sumber: Seputar Indonesia)

Fuel subsidies hurting Indonesia: Pertamina executive

[ AFP ]

SINGAPORE (AFP) — Fuel subsidies in Indonesia are hurting the economy, sucking away precious funds which could have been better used in other areas such as health and economic development, an Indonesian oil executive said Sunday.

The country cannot go on indefinitely subsidising fuel and bold decisions are needed from the government to address the situation, said Widhyawan Prawiraatmadja, a senior vice president with state-owned Pertamina.

"When you continue subsidising oil, there will be some distortion," he said.

"I think the government will have to start making some bold efforts to rectify this, otherwise this is going to continue and perhaps even get worse because of the distortion in the market," he said.

Prawiraatmadja, who was speaking at an Asia security summit in Singapore, said his comments do not reflect that of his employer.

The Indonesian government recently hiked fuel prices by almost 30 percent in what it said was a move to save the budget from the swelling cost of its multi-billion-dollar subsidy scheme on the back of soaring global oil prices,

Fuel prices have been heavily subsidied in Indonesia and since the fuel hike was announced, protests have occurred almost daily across the country.

Selisih Harga BBM Indonesia

[ Harga BBM RI Mei 2008 ]

Berapa harga Minyak Tanah tanya saya? Rp.4.200,-
Berapa harga Premium? Rp. 4.500,-
Kalau Solar? Rp. 4.300,-
Kalau begitu tolong lihat harga minyak di Amerika/US dibawah ini




Silakan kalkulasi berapa negara merugi jika, pada tahun 2004 di Blueprint PEN (Pengembangan Energi Nasional) dalam satu hari Negara mengimpor 487.000 Barel.

Dengan pertumbuhan iklim investasi dan penjualan produk kendaraan bermotor, bukan hanya kendaraan roda dua, maka secara logika sederhana kebutuhan akan BBM meningkat drastis.

Jikalau begitu bagaimana dengan kebijakan Pemerintah menaikkan harga BBM?

[ A.Arifianto ]

Harga BBM akan Naik Terbatas

[ Republika ]

Subsidi BBM hanya untuk warga tak mampu.

JAKARTA--Pemerintah akan menaikkan harga bahan bakar minyak (BBM) bersubsidi secara terbatas. Pengumuman kenaikan itu akan diputuskan bersamaan dengan program kompensasi bagi masyarakat yang paling rawan terdampak kebijakan tersebut.

''Melihat situasi sekarang ini, pemerintah menyiapkan suatu kebijakan dengan tujuan untuk mengamankan APBN 2008-2009 dengan fokus pada subsidi BBM dan listrik,'' kata Menko Perekonomian, Boediono, usai rapat terbatas di Kantor Presiden, Senin (5/4).

Paket mekanisme penghematan energi dan konsumsi BBM yang ada saat ini, seperti konversi minyak tanah ke elpiji, pengenaan tarif insentif disinsentif, dan kartu kendali minyak tanah, dirasa belum cukup. Demikian pula, dengan rencana penerapan smart card.

Karena itu, perlu pelaksanaan dua elemen tambahan yang saling terkait. ''Elemen itu adalah kenaikan BBM bersubsidi secara terbatas yang masih bisa ditanggung masyarakat, sekaligus memberikan kompensasi kepada mereka yang berpenghasilan rendah dan miskin,'' papar Boediono.

Berapa besaran kenaikan dan kapan mulai berlaku, Boediono enggan membeberkan dengan dalih masih dibahas teknisnya. ''Kita tak bisa sampaikan (kenaikannya) kapan, tapi arahnya ke sana.''

Menkeu, Sri Mulyani, menjanjikan kenaikan itu diumumkan tak lama lagi agar tidak memperpanjang ketidakpastian. Pemerintah, lanjut Menkeu, justru ingin memberi sinyal bahwa subsidi hanya untuk warga tak mampu dengan menaikkan harga BBM secara terbatas.

''Ini penting agar seluruh pelaku ekonomi melihat APBN kita memiliki kepastian.'' Menkeu juga menegaskan bahwa kisaran kenaikan BBM masih bisa ditanggung masyarakat dan pelaku ekonomi.

Kenaikan harga BBM itu, jelas Menneg PPN/Kepala Bappenas, Paskah Suzetta, terkait langsung dengan program kompensasi. ''Itu hanya realokasi,'' katanya.

Pemerintah perlu waktu sebelum mengumumkan, kata Paskah, selain untuk mendapatkan perhitungan yang tepat, juga perlu berkonsultasi dengan DPR. ''Masyarakat juga dipersiapkan menghadapi kenaikan tersebut.''

Mengantisipasi kenaikan harga BBM itu, Sekretaris Utama Bappenas, Syahrial Loetan, menjelaskan pemerintah akan mengamankan 19,1 juta keluarga atau sekitar 50 juta jiwa (16-17 persen) penduduk miskin melalui program bantuan langsung tunai (BLT).

Namun, BLT itu akan diberikan selektif, hanya kepada mereka yang benar-benar membutuhkan. ''Yang diberi adalah mereka yang sudah tak bisa lagi dikasih pancing.''

Presiden minta dukungan
Sebelumnya, saat jamuan makan siang dengan pimpinan media massa, Presiden Susilo Bambang Yudhoyono meminta dukungan semua pihak untuk bersama mengatasi krisis dan masalah yang sedang dihadapi bangsa. ''Saya syukuri adalah komitmen bersama merapatkan barisan mengatasi masalah ini,'' kata Presiden.

Menurut Presiden, tahapan sekarang bukan lagi membahas harga BBM naik atau tidak, tapi bagaimana imbas kenaikan 20-30 persen terhadap berbagai komoditas, termasuk instrumen untuk melindungi masyarakat miskin dan berpenghasilan rendah.

''Itu kita hitung secara cermat. Mudah-mudahan tidak terlalu lama, sehingga bisa memberikan jaminan kepada pasar bahwa kebijakan kita tepat dan dalam waktu yang tepat. Jadi, tak sekadar menaikkan harga,'' jelas Presiden.

( wed/djo/una/evy )

Ketua DPR: Jangan Pakai Opsi Terakhir

[ Republika ]

JAKARTA--Ketua DPR, Agung Laksono, tak setuju harga BBM bersubsidi dinaikkan. Kebijakan itu dinilainya hanya membebani rakyat berpenghasilan rendah, seperti pegawai negeri dan karyawan perusahaan kecil. ''Kondisi rakyat sudah sangat parah,'' kata Agung, Senin (5/4).

Apalagi, katanya, alternatif lain masih bisa dijalankan ketimbang menaikkan harga BBM bersubsidi, seperti penjadwalan utang luar negeri. ''Sebaiknya, jangan dipakai opsi terakhir itu,'' pintanya.

Sementara itu, kenaikan harga BBM secara terbatas, menurut Ketua Komite Tetap Moneter dan Fiskal Kadin, Bambang Soesatyo, sudah diantisipasi pelaku usaha. ''Bahkan, kita tadinya berharap rapat kabinet terbatas sudah bisa memutuskan besaran kenaikan dan kapan diberlakukan, tapi ternyata masih diambangkan.''

Mengenai besarannya, Bambang menyerahkan ke pemerintah. Hanya, katanya, jika kenaikan harga BBM jauh di atas 10-30 persen, dampaknya terhadap masyarakat kelas menengah ke bawah sangat besar.

Sumber Republika di pemerintahan menyebutkan bahwa ada tiga langkah tambahan pengamanan APBN, yakni perluasan smart card, subsidi terbatas, dan kenaikan harga BBM. Smart card adalah bagian dari program penghematan konsumsi BBM bersubsidi.

Sedangkan, subsidi terbatas merupakan program penghematan BBM bersubsidi yang hanya diberikan untuk kendaraan umum dan sepeda motor. Sementara itu, untuk kenaikan harga BBM, skenario kenaikannya rata-rata 28,7 persen.

Prediksi Kenaikan Harga BBM
Premium / Rp 4.500 / Rp 6.000
Solar / Rp 4.300 / Rp 5.500
Minyak Tanah / Rp 2.000 / Rp 2.500
Kenaikan rata-rata 28,7 persen.

(evy/dsy/wed )

PLN says power subsidy not enough for this year

[ jakartapost ]

Ika Krismantari, The Jakarta Post, Jakarta

On the back of higher global oil prices, state power firm PT Perusahaan Listrik Negara (PLN) has asked the government to raise its power subsidy for this year.

PLN president commissioner Alhilal Hamdi said Tuesday the company would ideally need Rp 70 trillion (US$7.5 billion) in subsidies this year following the change in the state budget's oil price assumption to $80 per barrel from $60 per barrel.

He said the government's plan to raise the electricity subsidy to Rp 42.6 trillion from Rp 29.8 trillion allocated previously would not only be insufficient but would also stretch the company's financial resources.

"We estimate that we will need about Rp 70 trillion this year," Alhilal said after a meeting with the House of Representatives' Commission VII for energy and mineral resources.

Should the government and the House turned down the request, Alhilal said, the company would seek loans from local lenders to help the company plug the gap in the subsidy.

"We hope we can get the subsidy revision in the middle of this year. For the time being we will use the existing subsidy allocation already approved by the House," he said.

Based on an average oil price assumption of $60 per barrel, the House has agreed to provide PLN with Rp 29.8 trillion in subsidies for the 2008 state budget.

The subsidy is needed in order for the country's households to enjoy affordable electricity rates, which are set below the normal market price.

Following the surge in global oil prices, the Finance Ministry has proposed to the House it raise the power subsidy to Rp 42.8 trillion to prevent electricity rates from soaring.

Commission member Tjatur Sapto Edi said the commission had not yet discussed PLN's subsidy proposal.

"We hope PLN can find alternative fuels to generate its power plant so as to reduce operation costs," he said.

Currently, 30 percent of PLN's power plants run on diesel fuel.

Due to soaring global oil prices last year, the subsidy for electricity was raised by 33 percent to Rp 43.4 trillion from the original allocation of Rp 32.44 trillion.

Greenpeace and Bali hotels work together in energy efficiency program

[ JakartaPost ]

BENOA, Bali (JP): Hotels in Bali, working together with environmental organization Greenpeace, launched Tuesday an energy efficiency program aimed at promoting responsible and climate friendly tourism on the resort island.

Greenpeace Southeast Asia Climate and Energy Campaigner, Shailendra Yashwant, said the program, called “Switch off, Unplug, Enjoy – Energy Efficient Bali”, set an ambitious target of lowering hotel electricity consumption by 40 percent within a year.

“We are very ambitious, but it is very possible to achieve,” Shailendra said.

The program was launched aboard the Greenpeace flagship Rainbow Warrior, currently docked in Benoa Harbor off Nusa Dua, where the United Nations conference on climate change is underway.

Environment Minister, Rachmat Witoelar, welcomed the initiative. “Undoubtedly, like any other sector, tourism potentially contributes to the problem of climate change. On the understanding that everyone must do their share to reduce our collective carbon footprints, the Indonesian government welcomes this Greenpeace initiative to kick-start a conscious effort to help offset some of the problems associated with inefficient energy use,” he said.

The United Nations World Tourism Organization (UNWTO) says international tourism contributes some 5 percent to global carbon emissions. Based on UNWTO tourism market forecast, if no mitigation measures are taken, the industry’s carbon emissions could grow by 150 percent in the next 30 years.

Greenpeace has surveyed 15 hotels in Nusa Dua, Bali, under the program, to see their existing energy and environmental conservation practices.

“There are a lot of things that can be improved, such us using renewable energy for power sources. Even though the sun shines all year round, hotels here do not use solar power water heaters,” Shailendra said.

Sulistyowati, deputy assistant to Environment Minister for the impacts of climate change affairs, says hotels in Indonesia, including in Bali, have not been energy efficient.

“The designs of the hotels should be made in a way that could save energy. The more windows, for instance, the less energy will be spent on lights and air conditioning,” she said.

She added that the latest study on hotels’ contribution to global warming showed that lighting accounted for 70 percent of their contribution, compared to water (12 percent), greenhouse gasses (30 percent) and waste (65 percent).

Data from the Bali office of state electricity company, PLN, reveals that hotels – especially in Badung regency and Denpasar city -- consume 70 percent of the total electricity supply, which reaches 439 megawatts during peak hours. Nusa Dua resort area, the venue of the UN climate conference, alone consumes over one third of the power allocated for the hotels.

Shailendra said the energy saving program will consist of training on energy conservation, water conservation and waste management for hotel staff. Greenpeace will also provide energy efficiency and energy conservation awareness for tourists and will persuade the Indonesian government to provide incentives and subsidies that allow hotels to invest in renewable energy.

Urs Klee of the Bali Hotels Association said that hotels welcomed the program, which could give a medium 300-room-hotel savings of up to US$30,000 per year by installing solar water heaters.

“Using renewable energy saves money. The (establishment) costs will be returned within two to three years,” he said. (Ary Hermawan and Prodita Sabarini)

President asks private sector to develop biofuel

[ Antara ]

Nusa Dua (ANTARA News) - President of Indonesia Susilo Bambang Yudhoyono Tuesday appealed to the private sector to increase its role in developing biofuel which is environment-friendly and more economical than fossil fuel.

The president made the appeal when visiting a Sugar Group Companies (SGC) pavilion in a Cool Energy Exhibition held on the occasion of the United Nations Framework Convention on Climate Change (UNFCCC) on Tuesday.

"I hope it will be developed further," he said.

Biofuel was far more economical than fossil fuel, SGC President Director Gunawan Yusuf said in reply to the head of state`s question.

"Without government subsidy premium-grade gasoline is currently priced at 72 dollar cents or around Rp6,600 per liter, while ethanol is only priced at Rp5,000 to Rp6,000 per liter," Gunawan said.

In the long run, another 2.5 million hectares of land would be needed to develop biofuel to replace fossil fuel.

The government would use idle land which currently covered an area of 7 million hectares to meet the need for land, he said.

Separately, on Tuesday, Chief of the National Biofuel Development Team Al Hilal Hamdi said the team intended to make use of another 5 to 6 million hectares of idle land to develop biofuel until 2012. The land is located outside Java.

"We must develop the mass production of biofuel. Therefore, the government has set itself the target of using another 6 million hectares of land until 2012," he said.(*)

Skeptical Indonesians turn their backs on liquid petroleum gas

[ Herald Tribune ]

By Leony Aurora Bloomberg News

Published: October 22, 2007

JAKARTA: Siti Chairoh earns her living selling liquid petroleum gas. But she will not cook with the fuel.

"I'm afraid to use it," said Chairoh, who runs her business from the home she shares with her son, his wife and two grandchildren in Jakarta. "I don't care if people say I'm old-fashioned. I'm too scared the cylinder will blow up."

Fear is hindering Indonesia's drive to persuade poor people to use liquid petroleum gas, or LPG, instead of kerosene, a switch that would save them money and cut government fuel subsidies by 23 trillion rupiah, or $2.5 billion - almost half the Indonesian education budget next year.

After six months of marketing and education campaigns in Jakarta, the plan has stalled because of the inability of the state energy company PT Pertamina to persuade people that LPG is safe. Protests erupted in Jakarta, the capital, in August, when kerosene supplies ran short after Pertamina cut deliveries because of an expected drop in demand. The government plans to convert the entire nation to LPG by 2011.

"The idea is brilliant," said Fauzi Ichsan, chief economist at the Indonesian unit of Standard Chartered. "Implementation is the problem."

Money is also an issue, even though Pertamina is providing free stoves and three-kilogram, or seven-pound, LPG canisters to every household.

In a country where half of the 235 million people survive on less than $2 a day, consumers need as little as 1,500 rupiah to buy a half-liter of kerosene, enough for the typical family to cook a single meal. It costs about 13,000 rupiah for a canister of liquid petroleum gas, which lasts a family about a week.

"There will be cash-flow problems," said Ibnu Bramono, senior consultant in Singapore at Facts Global Energy, a consulting firm. "It was even difficult in Jakarta. In remote areas it will be worse."

In the long run, households switching to LPG will save at least 24,000 rupiah a month, Pertamina estimates.

While Indonesia subsidizes all fuel for nonindustrial use, the switch will save money for the government because subsidies for LPG are lower than those for kerosene. State aid reduces the price of LPG by 53 percent, compared with 68 percent for kerosene, according to Pertamina. In 1998, demonstrations against fuel price increases helped topple the 32-year dictatorship of President Suharto.

Indonesia, a member of the Organization of Petroleum Exporting Countries, is the world's biggest exporter of liquefied natural gas, though it is a net importer of oil products like kerosene.

Educating new liquid petroleum gas users is not easy, said Marwan, an LPG retailer who uses just one name. While conducting demonstrations at his kiosk in south Jakarta, Marwan places LPG cylinders in buckets of water to prove they do not leak. Even so, many customers return asking for kerosene, frightened because they cannot replicate some aspect of the lessons, he said.

The transition might have been smoother if the government had been more involved, said Huzna Zahir of the Indonesian Consumers Association.

The ministries of energy, women's affairs and small business could have helped educate consumers, Zahir said. Those ministries and Pertamina should place advisers in communities until people adjust to the new fuel. "That way people will have someone to turn to when they have questions," she said.

Pertamina was chosen to implement the switch because it successfully ran a pilot program in 2006 and maintained a distribution network of agents and retailers, said Energy Minister Purnomo Yusgiantoro. The company will continue to lead the effort, although government ministries will now help, he said.

Chairoh, the LPG retailer, is not budging. A former kerosene seller, she keeps gas stoves out of her kitchen and stores about 100 LPG canisters in a shed away from her brick house.

Menristek Minta Wapres Geser Subsidi BBM ke Biofuel

[ Republika ]

Jakarta-RoL-- Menristek Kusmayanto Kadiman meminta Wapres Jusuf Kalla menggeser sebagian subsidi bagi Bahan Bakar Minyak (BBM) ke Bahan Bakar Nabati (BBN) atau biofuel.

Pengarahan Wapres Jusuf Kalla menyebut selama dibandingkan dengan BBM, maka BBN tidak akan pernah menang, karena BBM disubsidi. Jadi saya pertanyakan mengapa BBM disubsidi? kata Kusmayanto di sela Peringatan Hari Kebangkitan Teknologi Nasional (Hakteknas) yang dihadiri Wapres di Jakarta, Jumat.

Ketika memberi selamat pada rombongan Biofuel Expedition Menado-Jakarta itu, ia mengatakan kepada wartawan, solusinya adalah sebagian subsidi BBM digeser ke BBN. Sayangnya Wapres menjawab soal itu masih sulit. Pemerintah di satu sisi mensubsidi BBM tetapi di sisi lain tidak mensubsidi BBN. Saya berharap subsidi ini bisa digeser sebagian, katanya.

Menristek juga mengeluhkan sulitnya menjelaskan bahwa alkohol dalam bioethanol (BBN substitusi bensin) itu berbeda dengan alkohol untuk minuman keras dan karena itu tidak seharusnya dikenakan bea cukai tinggi. Bioethanol itu menggunakan ethanol full grade yang kandungan airnya kurang dari 0,05 persen yang kalau diminum orang akan mati, katanya.

Roadshow kendaraan Biofuel Expedition 2007 Menado-Jakarta tiba di Jakarta Jumat, dini hari dan telah melakukan perjalanan sejauh hampir 3.000km menggunakan bahan bakar nabati (biofuel). Roadshow kendaraan berbahan bakar nabati Menado-Jakarta melalui
Gorontalo, Palu, Makassar, Surabaya hingga Yogyakarta selama perjalanannya lebih menonjolkan bahan baku nabati lokal seperti aren di Sulut, sawit di Sulteng, serta Tebu di Jatim.

Roadshow ini menggunakan 15 mobil ujicoba, ditambah tiga kendaraan lagi di Surabaya menjadi 18 unit dengan menggunakan bioethanol 3, 10, 15, 20 persen, biodiesel 3 dan 20 persen, serta truk dengan minyak sawit murni hingga 40 persen dengan menggunakan alat tambahan (konverter).

Sementara itu, Direktur Teknologi Pengembangan Sumber Daya Energi BPPT Unggul Priyanto sebagai Ketua Panitia mengatakan, secara umum roadshow BBN ini berhasil, karena dari hitung-hitungan kasar selain lebih hemat, oktannya lebih tinggi, performance lebih baik, juga emisi lebih bersih.

Selain itu dibandingkan pengadaan BBM, pengadaan biofuel membuka lapangan kerja hingga 10 kali lipat sehingga menguntungkan bagi petani kecil, katanya. Bahan baku bioethanol bisa berasal dari singkong, jagung, sagu, tetes tebu, aren dan lain-lain. Sedangkan biodiesel (BBN) sebagai substitusi diesel, berasal dari bahan baku minyak sawit, jarak pagar, minyak kedelai dan lain-lain. ant/
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