Southeast Asia gets penny-wise about energy

Southeast Asia gets penny-wise about energy

Deutsche Presse-Agentur, Bangkok

With oil prices at historic highs this year, hiking import bills
and slowing economies, Southeast Asian governments are pursuing a
host of energy saving measures such as raising office
temperatures, turning off night billboards and encouraging car
pools and the use of alternative fuels.

The austerity measures, while moving in the right direction,
are expected to prove a drop in the bucket when compared with the
vast amounts spent by some of the same governments on fuel
subsidies to keep the populous happy.

The Thai government, which has spent 92 billion baht (US$2.2
billion) on fuel price subsidies since January 2004 was forced to
float gasoline prices in October 2004 and "semi-float" the more
politically sensitive diesel last month.

On July 12, the government approved energy-saving measures
designed to save the country $162 million this year, including
closing petrol stations between 10 p.m. to 5 a.m., turning off
billboards after 10 p.m., and ordering civil servants to use
gasohol in their cars.

Thailand's billionaire Prime Minister Thaksin Shinawatra has
yet to follow the government's gasohol directive in his own fleet
of luxury cars, according to Thai newspaper interviews with his
chauffeur.

High oil prices helped hike Thailand's import bill 37 percent
during the first five months of 2005 to $48.8 billion, leaving
the country with a trade deficit of $6.6 billion. Thailand's
economy, which grew an impressive 6 percent in 2004, is looking
at a much slower growth rate of 4 percent this year.

The energy situation is arguably more politically threatening
for Indonesian President Susilo Bambang Yudhoyono -- who earlier
this month postponed state visits to China, Thailand and Brunei
due to a domestic fuel shortage -- showing the magnitude of the
issue for his political career.

Susilo this month issued presidential instructions to conserve
energy, which included an order for officials to up their AC
temperatures to 25 Celsius degrees, while the presidential palace
reportedly upped its air con to 28 Celsius degrees.

Top government officials, including Susilo, have ditched their
traditional business suits and ties at work for short sleeve
Batik or casual shirts, or the once-popular safari suits.

Indonesia's Ministry of Communications and Information
instructed TV stations to save energy by halting broadcasts from
1 a.m. to 5 a.m., except for European soccer games, sparking
criticism from some elements of society.

"If I could talk to President Susilo, I'd tell him it's a bad
idea to limit the TV time," Zainuddin, 44, an ojek (motorcycle
taxi) driver in Jakarta, told Deutsche Presse-Agentur. "It's our
only entertainment at night."

Even less popular would be a decision to lift government
subsidies of domestic fuel prices, although many economists
believe this is now necessary.

"The government should just be honest and raise the fuel
prices soon," said Faisal Basri, an economist at the University
of Indonesia. "The water is already at our nose, we are almost
drowning."

Vice President Jusuf Kalla last month warned that with current
consumption in Indonesia, the government would have to provide Rp
110 trillion (US$11.3 billion) in subsidies to catch up with the
increased price of crude oil.

Last year the government spent $7.4 billion on fuel subsidies.

Fuel price subsidies are also still in place in Malaysia.

The Malaysian government has raised gasoline and diesel prices
three times since last October but prices still remain low
compared to neighboring nations.

Subsidies for petroleum cost Malaysia, a net oil exporter, 4.8
billion ringgit (US$1.3 billion) last year, and could reach 8.9
billion ringgit this year if oil prices continue to rise.

The Philippines scrapped its subsidies on oil prices back in
1997, when the oil industry was deregulated.

With the current increases in prices, however, the government
has persuaded oil firms to give public transport groups a one-
peso (2 U.S. cents) discount on diesel.

During summer months of April and May, the government
implemented a four-day work week as part of efforts to cut back
on power and fuel consumption, saving 144 million pesos.

Government offices have been ordered to turn off air-
conditioning systems during lunch hour, while the use of
government vehicles has been placed under strict monitoring to
avoid unofficial use.

Among the public, the government has encouraged people to take
car pools, cut down on use of electronic devices and use energy-
efficient light bulbs, among other measures, to save on energy
consumption.

A suggestion for all shopping malls to close at least one day
a week to save on electricity and fuel, however, was never
implemented.