Rendi A. Witular, The Jakarta Post, JAKARTA<\/p>\n
Lending Hands: Chief executive officer of Cooperation for Development Europe (CDE) Terry Lacey (left) greets Bandung Institute of Technology researcher Tatang H. Soerawidjaja (right) while Indonesian Institute of Sciences (LIPI) head of chemical standards Hery Haerudin looks on during a seminar on biofuels in Jakarta on Wednesday. The seminar was organized by CDE, the Institute for Global Environmental Strategies (IGES), university researchers and government agencies. (JP\/J. Adiguna)Lending Hands: Chief executive officer of Cooperation for Development Europe (CDE) Terry Lacey (left) greets Bandung Institute of Technology researcher Tatang H. Soerawidjaja (right) while Indonesian Institute of Sciences (LIPI) head of chemical standards Hery Haerudin looks on during a seminar on biofuels in Jakarta on Wednesday. The seminar was organized by CDE, the Institute for Global Environmental Strategies (IGES), university researchers and government agencies. (JP\/J. Adiguna)<\/p>\n
A grave lack of leadership and a deepening global economic meltdown have resulted in the development of biofuels being put on the back burner.<\/p>\n
In a two-day seminar that kicked off on Wednesday, experts voiced concern over the government\u2019s failure in turning the \u201ceuphoria\u201d of the potential of biofuel development into concrete and fruitful action.<\/p>\n
\u201cFor some reason, the euphoria surrounding biofuel development unfortunately did not materialize into bold and real activities that responded to the government\u2019s intentions,\u201d Hilmi Panigoro, chairman of the Indonesian Renewable Energy Society (IRES\/METI), said.<\/p>\n
\u201cInstead, we now have a controversial situation, which has further confused and discouraged investors,\u201d said Hilmi, whose family founded the Medco Group which is involved in the oil and gas business.<\/p>\n
In 2006, the government issued strategic policies on the development of biofuels to reduce dependency on fossil fuels while at the same time strengthen national energy security.<\/p>\n
On the back of skyrocketing global oil prices in early 2008, the development of renewable energy had spurred \u201ceuphoria\u201d among the public as well as the private sector about the bright prospects of the biofuel industry in Indonesia.<\/p>\n
However, according to Hilmi, there were problems with the clarity of the government\u2019s direction and ability to effectively provide leadership, to ensure and drive all the related stakeholders to take action.<\/p>\n
\u201cThere was not a clear and consistent strategic plan, which should have been followed up with real action,\u201d he said.<\/p>\n
The now-defunct National Team for Biofuel Development, for example, had no authority to enforce policy other than merely coordinate between the related ministries.<\/p>\n
Coordination in biofuel development is now under the Office of the Coordinating Minister for the Economy, which is also toothless in forcing the related ministries to get serious about supporting the policy.<\/p>\n
\u201cBiofuel development is just floating around without leadership. The current global economic crisis has even forced the related ministries away from the program,\u201d Unggul Priyanto, director of energy resources development at the Agency of Assessment and Application of Technology (BPPT), said.<\/p>\n
The Energy and Mineral Resources Ministry, Agriculture Ministry, Forestry Ministry, Industry Ministry and Finance Ministry are critical to the success of biofuel development.<\/p>\n
\u201cThey are now busy cushioning the impact of the crisis. Biofuel development has been put at the bottom of their list of priorities,\u201d Unggul said.<\/p>\n
He also said uncertainty about the biofuel pricing policy versus subsidized fossil fuels had also
\ndiscouraged businesses to enter the sector.<\/p>\n
Declining global crude oil prices has made the development of biofuels less attractive, given the high cost involved in producing biofuel.<\/p>\n
The government mandated that by 2025, biofuel consumption must contribute at least 5 percent to the national energy portfolio, from less than 1 percent currently.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/biofuel-euphoria-ends-in-vain-1233816620", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }