Special message to Sony Keraf

Special message to Sony Keraf

From Media Indonesia

State Minister of the Environment Sony Keraf has stipulated a policy for implementation soon which will effectively abolish use of leaded gasoline in major cities. Unfortunately, it seems the implementation will be difficult because users of leaded gasoline are unfamiliar with the policy.

The Alliance of Environmentally Concerned Community (Ampel) has since 1997 endeavored to popularize unleaded gasoline but has faced obstacles in its efforts. The objection most frequently voiced by the community is that unleaded gasoline is more expensive than leaded gasoline.

In the present economic condition characterized by instability, a proposed leaded gasoline price hike of 20 percent has been strongly opposed. More opposition will be shown if the community will have to quickly switch to using unleaded gasoline, which is about 60 percent more expensive than leaded gasoline.

We wish to propose the following to the environment minister as our solution to the abolition of leaded gasoline.

(1) Leaded gasoline can be quickly abolished if the price of the fuel set to replace it is much lower. In this respect, one must be daring enough in making a decision and have at one's disposal a careful economic analysis on the subject.

(2) Leaded gasoline may be replaced by gas, which is much lower in price than leaded gasoline.

(3) When leaded gasoline is no longer used as fuel, the government's subsidy for it may be allocated to subsidize the use of gas fuel equipment in vehicles.

(4) As the use of gas as fuel will increase, state oil company Pertamina will no longer need to spend fund on promoting the use of gas as fuel among the community. These funds may then be allocated to subsidize the use of gas fuel equipment in vehicles.

(5) If this equipment is still imported, the government may decide to exempt the import of this equipment from import duties.

(6) Economic experts may be asked to calculate whether the subsidies for premium gasoline, the promotional costs of gas, the import duty exemption and the increased price of gas can equal the funds needed for the purchase of gas fuel equipment in vehicles. If the answer is positive, this equipment may be distributed free to the community. Otherwise, it can be purchased by installment through the purchase of gas at a particular fee.

(7) As the community enjoys the government's subsidy in the form of free fuel gas equipment, it certainly will no longer object to buying gas at a price approaching or equal to that of leaded gasoline (at present the price of gas fuel is Rp 450 per liter).

H. MAHATMA GANDHI

Executive Director of

Alliance of Environmentally Concerned Community