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.