Government hesitates on plan to ban leaded fuel

Government hesitates on plan to ban leaded fuel

JAKARTA (JP): Despite growing concern that the country should
ban leaded fuel, the government insisted on Tuesday that the move
was unlikely in the near future as there were more pressing
demands on its limited resources.

Assistant to the Coordinating Minister for the Economy Dipo
Alam said the government supported efforts made by non-
governmental organizations (NGOs) to arrange a presidential
decree ruling that Greater Jakarta be free of leaded fuel by June
next year.

"But the government has its priorities, which, among other
things, is promoting social safety net programs," Dipo said
during a one-day environmental workshop titled "Leaded Gasoline
Phase-out in Indonesia and Realistic Fuel Pricing Policy" here on
Tuesday.

He said given the current situation, the government lacked
sufficient resources to allocate to the program.

"Our funds are limited, therefore we distribute those funds in
line with our priorities.

"Unfortunately, we have yet to hear from investors interested
in joining the plan," he said, adding that the program would go
ahead should conditions become more feasible.

Besides Dipo, speakers during the seminar included an
executive from state-owned oil company PT Pertamina, Maskurun,
The Jakarta Post's managing editor Endy M. Bayuni and National
Development Planning Board advisor Chandra Prakash.

During an environmental workshop held in February, the
Ministry of Energy and Mineral Resources agreed that the Greater
Jakarta area should ban leaded gasoline by June next year, with
the ultimate goal of making the whole country free of leaded
gasoline by January 2003.

Under the plan, sponsored by several NGOs, an estimated US$190
to $230 million will be needed to finance the conversion from
leaded to unleaded fuel.

Currently, unleaded fuel, such as Petro 2TT "blue gasoline"
and Super TT, comprise less than 1.5 percent of the gasoline sold
in the country.

A shortage of investors in the project was also confirmed by
Maskurun.

"At least 10 investors have come to our office to discuss the
plan. But as time goes by, none have agreed to follow up on the
plan. Perhaps they realized that the plan was economically
challenging," said Maskurun, an executive in the planning
division of the oil company.

Meanwhile, Achmad Syafrudin, chairman of the Jakarta chapter's
Indonesian Forum for Environment (Walhi), urged the government to
take immediate steps to somehow begin implementing the plan.

"The first step is to raise funds to finance investment in the
plan, and that is the responsibility of the Ministry of Finance,"
he said in his address.

He warned that air pollution in Greater Jakarta had reached
alarming levels.

"Air pollution levels in the capital have reached 0.2 to 1.8
micrograms per cubic meter, while the World Health Organization
sets the limit at 0.5 micrograms per cubic meter," Achmad said.

Another speaker, Chandra Prakash, also pointed out the serious
health consequences of high air pollution levels.

"As it (lead) is emitted as very fine particles, it is
inhaled, easily entering the human body. It can have a serious
impact on human health, such as causing brain damage in
children," he said, adding that the health cost of lead emissions
in Indonesia was estimated at $62.4 million per year.(asa)