SBY issues decree on fuel saving measures

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.