Power consumption declines on energy saving drive

Power consumption declines on energy saving drive

Rendi A. Witular, The Jakarta Post, Jakarta

The government said on Wednesday that peak-time power consumption
had declined by more than half after President Susilo Bambang
Yudhoyono issued a presidential instruction on energy
conservation last week.

Minister of Energy and Mineral Resources Purnomo Yusgiantoro
said that power consumption in the Java-Bali network during peak
hours between 5 p.m. and 10 p.m. had declined by 900 megawatts
(MW) from 1,500 MW to 600 MW.

"So far, there has been a significant decline in power
consumption since the President issued the energy conservation
instruction. As for fuel, we can't determine the results yet as
the calculations are not so straightforward as in the case of
power," he explained.

He said that the power savings were very encouraging as the
instruction was not legally binding on the public, but was rather
dependent on people's goodwill.

Purnomo added that the government had decided not to
immediately issue binding regulations for reducing both power and
fuel consumption as initially planned as the impact would be
severe on both the public and the economy in general.

"We acknowledge that the instruction is only an appeal. But
eventually, we will issue the necessary, legally binding
regulations stipulating restrictions on fuel consumption,
especially subsidized premium gasoline," he said.

Presidential Instruction No. 10/2005 was signed during a
Cabinet meeting on July 10, which was also attended by executives
of state oil and gas firm PT Pertamina and 33 governors.

The instruction requires government offices to reduce power
consumption on air conditioners, lighting and office appliances,
and the use of official vehicles.

The instruction also states that local governments should
promote the program among the public and private sector in their
respective jurisdictions, and issue regulations establishing a
progressive vehicle taxation system.

The government has set a quota of 59.69 million kiloliters for
domestic fuel consumption this year, with fuel subsidies expected
to cost Rp 76.5 trillion (US$7.88 billion).

But demand for fuel rose by 10 percent in the first semester.
This is of concern to the government -- particularly with global
oil prices hovering at above $60 per barrel recently -- as
additional fuel subsidy spending will further strain the already
overstretched state budget.