Govt must lead campaign for alternative fuels

Govt must lead campaign for alternative fuels

The continuing trend of high global oil prices has left the
Indonesian government facing a dilemma as raising fuel prices
will be met with strong opposition while keeping prices as they
are will cause the budget to be derailed.

Indonesia has huge amounts of untapped natural resources that
are capable of providing alternative fuels for the automotive
sector -- both public and private -- but the government still
lacks leadership and appropriate policies.

In the past, many taxi companies in Jakarta installed LPG
conversion kits in their vehicles -- allowing the drivers to
switch between gasoline and LPG or bi-fuel -- only to find that
there were not enough LPG filling stations in Greater Jakarta.

Recently, Indonesian scientists and companies have been
promoting the use of palm oil-based biodiesel. However, there has
been only a lukewarm response from the government.

"With such huge natural resources, the Indonesian government
only needs to spell out its policies for alternative fuels and
show strong leadership to the automotive industry," PT Ford Motor
Indonesia's Richard Baker told The Jakarta Post recently.

"The government should also provide a number of incentives,
such as tax reductions for cars using alternative fuel," he
added.

Baker was speaking on the sidelines of a Ford Focus test drive
event at the Bira Race Circuit in Pattaya, Thailand, on Aug. 3
and Aug. 4.

"Without clear policies and incentives, automakers may be
reluctant to introduce engines that use alternative fuel as they
are more expensive than ordinary engines.

"For gasohol, for example, we have to use stainless steel
pipes instead of ordinary steel pipes, and need a computer to
monitor the mixture of alcohol and gasoline," Baker said.

He gave as an example the Ford Taurus, which can run on fuel
of up to E-85 standard, which means 85 percent alcohol and 15
percent unleaded gasoline. However, it costs US$500 more than an
ordinary gasoline model.

Cars like the Ford Taurus are also known as Flexible Fuel
Vehicles (FFV) as they can run on any mixture of gasoline and
alcohol from E-10 up to E-85. The term FFV can also be applied to
vehicles running on the same mixtures of biodiesel, from B-10 up
to B-85.

"We had to offer a $500 discount so the price of the car would
be the same as those with gasoline engines."

Baker, however, emphasized that the technology was already
there in the market and PT FMI could easily provide the cleaner
engines as long as there were incentives for car buyers.

"Maybe Indonesia could start by using E-10 instead of jumping
ahead to E-85. As soon as the gasohol is more readily available,
we can increase the proportion of alcohol.

Baker, however, did not say that Indonesia should rely solely
on gasohol, but rather should look for the best option
considering all the resources available.

"With such a huge production of palm oil, Indonesia could also
use bio-diesel to reduce diesel consumption. Indonesia could also
opt to use gas for its public transportation, buses and taxis.

"This is what the Indonesian government needs to do: map all
the available resources and provide the guidelines on how to use
them."

The automotive industry, he said, will do what is necessary
provided government policies are clear. -- The Jakarta Post