Tue, 16 Aug 2005

Experts urge government to promote biofuel

Abdul Khalik, The Jakarta Post, Jakarta

As fuel prices continue to soar on the international market, environmentalists, non-governmental organizations (NGOs) and businesses have renewed their calls for the government to develop biofuels to help conserve energy and reduce air pollution.

"We have to shift our energy sources from fossil fuels to biofuel, such as crude palm oil (CPO) and/or castor oil, which are abundant here in our country," environmentalist Ahmad Syafrudin told a seminar last week.

During the event, which was organized by the city administration and Swisscontact, participants, who included officials from the Office of the State Minister for the Environment, NGOs, researchers and businesspeople, it was agreed that Indonesia is in dire need of alternative fuels as the country will soon run out of reserves, partly due to the increasing number of vehicles.

Looking at the government's current drive to conserve energy, Ahmad said there was no reason for biofuel to be excluded as it was one of the best options for resolving the country's problems in dealing with increases in oil prices.

Fuel prices on the international market shot up to US$66 per barrel last week, prompting the government to suggest that it will increase fuel prices at home before January 2006.

Fuel shortages are common in Indonesia, despite it being a member of the Organization of Petroleum Exporting Countries (OPEC).

In order to ease the energy burden, President Susilo Bambang Yudhoyono issued Instruction No. 10/2005 requiring all local and central government offices to reduce power consumption on air conditioners, lighting and office appliances, and especially fuel for vehicles.

Last week, the government announced that although world oil prices had hit US$66 per barrel, Indonesia would not benefit as the country had become a net oil importer.

An expert on biofuel, Tri Mumpuni, who together with her husband Iskandar Kuntoaji has traveled to several areas across the country to train villagers on how to use biofuel, argued that the technology used to produce fuel from CPO or castor oil was simple so that even villagers would be able to master it.

"We can easily plant oil palms or castor-oil plants here in Indonesia. I have taught villagers in a number of areas of Indonesia to use castor oil as a replacement for kerosene, diesel, or gasoline in their mechanical equipment and trucks. We have also used castor oil as a fuel in electricity generators," she said.

The West Nusa Tenggara administration has successfully been using castor oil to generate electricity.

Tri said that Indonesia lagged behind Malaysia, which has been using CPO in its power projects.

"Malaysia plants oil palms here or buys the oil from us, and they process it into fuel. It's a pity that as a producer of CPO we can't benefit from it," he said.

Biodiesel entrepreneur Bambang Tribudiman, who also attended the seminar, said that besides replacing gasoline or diesel, biodiesel produced from CPO produced little pollution.

"It would also be cheaper than gasoline if the latter were not subsidized. With a retail price of Rp 3,500 per liter, the producers make Rp 500 per liter. Without a subsidy, people would be encouraged to use biodiesel in their vehicles," he said.

He added that the price of castor oil would be even cheaper.

Tri said that unsubsidized gasoline would cost Rp 4,500 per liter.

Both Ahmad and Tri agreed that the development of biofuel would need government support before it would be capable of being widely used.