Govt lacks commitment to use gas
Moch. N. Kurniawan, The Jakarta Post, Jakarta
The government has admitted to a lack of political will and an absence of an integrated energy policy to promote natural gas as an alternative fuel to help reduce air pollution.
Deputy of State Minister of the Environment in charge of Non- Institution Environment Impact Management Tanwir Yazid M. said that although the government had campaigned the use of Compressed Natural Gas (CNG) for motor vehicle fuel since 1986, CNG sales were about 26 million liters per year or only 0.3 percent of the total consumption of gasoline and automotive diesel fuel.
"One important point is that, like in other countries, without the political will to seriously promote CNG as an alternative fuel, natural gas will remain unpopular," he said.
Air pollution in the country is getting worse due mainly to the increasing number of motor vehicles and factories that use polluting fossil fuels.
Millions of gasoline and diesel vehicles -- with an 8 percent to 12 percent annual growth rate -- contribute about 60 percent to 70 percent of total air pollution.
The Jakarta Environmental Management Agency (BPLH) said, 31.23 percent of the air was categorized as unhealthy last year, an increase of 8.49 percent in 2001.
The clear and present danger of air pollution is real as pollutants like carbon monoxide (CO) could cause death and worsen heart disease. Lead (Pb) could cause brain damage and trigger heart attacks. Nitrogen oxides (NOx) could cause respiratory problems.
According to research presented last year, lead-related illnesses alone, in 1999, forced Jakartans to spend a total of Rp 3.3 trillion (US$410 million) on medical treatment.
Tanwir said that one of the main challenges facing the government in developing CNG was to develop a natural gas pipeline to distribute it across the country. At present, the development of a pipeline to link Sumatra and Java is underway, but there are no plans to connect other islands.
He agreed that the price of natural gas should be kept low to encourage people to use it. The government is allocating subsidies for gasoline and diesel producers, but none for CNG.
Experts have estimated that CNG should be sold at a maximum level of 60 percent or Rp 1,140 (US 12.8 cent) per liter of its current market price which is around Rp 1,900.
As of May, the price of CNG at filling stations here was Rp 450 per liter, while gasoline is around Rp 1,810 per liter. State-owned oil and gas company Pertamina suffers the loss from selling CNG at a price far below the market.
Tanwir suggested that the government also oblige bus, taxi, and other public transportation vehicles to use CNG, and oblige automotive producers to import or produce CNG vehicles.
The government must also give tax incentives to businessmen who deal with CNG.
Pertamina's manager of special products, Maulanatzi agreed with Tanwir, saying that CNG needed to be promoted by the government.
"We'll be ready to continue the development of CNG fuel stations if the government can cover the cost of production. If firms like us are forced to sell CNG for a net loss, we will go bankrupt," he said.
When interviewed by The Jakarta Post, taxi drivers Agus and Maman said they would only support the use of CNG as long as it was cheaper, proven safe and easy to obtain.
"In my experience, many people just don't want to get in my taxi if I use CNG. They are afraid my car will blow up because of CNG," Agus said.
"Besides, CNG stations in Jakarta remain scarce, let alone on the outskirts of town," he added.
At present, there are 17 stations in Java and nine in Sumatra.
Besides the lack of public confidence in the safety of CNG and a limited number of filling stations, people have also complained about the expensive price of converters.