SBY issues decree on fuel saving measures

Rendi A. Witular, The Jakarta Post, Jakarta

President Susilo Bambang Yudhoyono instructed officials in central and local government institutions to issue directives requiring the saving of fuel.

The Presidential Instruction No. 10/2005 on energy conservation was signed during a Cabinet meeting, which was also attended by executives of state oil and gas firm PT Pertamina and 33 governors, at the State Palace on Sunday.

Presidential spokesman Andi Mallarangeng said the instruction would require 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.

"These fuel conservation efforts are not aimed at reducing economic activity. They will only impinge somewhat on our comfort at the office. It is better to allocate subsidies to drive the country's economy than to burn them up keeping ourselves comfortable," said Andi.

Government and state officials will be allowed to issue their own directives for fuel conservation in their respective institutions, including reviewing civil service uniforms to help them better cope with the heat, he added.

Based on the instruction, government officials will be required to report on the progress of their programs to the President via the Ministry of Energy and Mineral Resources every six months.

Energy minister Purnomo Yusgiantoro said the instruction was expected to be followed up by a number of regulations and directives on fuel conservation from ministers, governors, regents, bureaucrats and executives of state and local government owned enterprises.

"With every part of government working to issue fuel- conservation directives, we are upbeat that we can reduce fuel consumption by between 5 percent and 10 percent, or at least keep it in line with this year's quota," he said.

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 the government -- particularly with global oil prices hovering at $61 per barrel -- as additional fuel subsidy spending will further strain the already over-stretched state budget.

Pertamina president director Widya Purnama said the country's fuel stocks currently stood at 19 days, less than the safe level of 22 days' supply. The firm is, however, upbeat that stocks will be back to normal by the middle of this month.

Gas stations across the country have been running short of supplies for two last two weeks after Pertamina cut back on its fuel supplies around the country so as not to overshoot the government-set quota.

Seven cities are still experiencing fuel shortages -- Krueng Raya in Nanggroe Aceh Darussalam, Pulau Bay and Maumere in East Nusa Tenggara, Pangkalan Bun in Kalimantan, Luwuk in South Sulawesi, Paregi in Sulawesi and Merauke in Papua. These cities, which are all remote, have only enough fuel supplies for three days.

Widya said Pertamina had sent a number of tanker ships to these areas, which were expected to arrive in port by the middle of this month.

"The fuel shortages will be over soon. Pertamina has secured 80 percent of its fuel supplies for August and 60 percent for September. There is nothing to worry about," he said.