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.