Unleaded gasoline hits Catch-22
Unleaded gasoline hits Catch-22
By P. Prasetyohadi
JAKARTA (JP): When it comes to using environmental friendly
fuels, Indonesia is falling behind its Southeast Asian neighbors
in spite of its status as the region's largest oil exporter.
Pertamina last August introduced unleaded gasoline to the
public, but despite compelling reasons for motorists to turn to
unleaded gasoline, the state oil company with a monopoly in
gasoline distribution has found few takers.
Experts believe the unleaded gasoline has fallen into the
classic "chicken or egg" dilemma: motorists are reluctant to make
the switch because there are too few stations dispensing unleaded
fuel. Pertamina is phasing in the Super TT, as the unleaded
gasoline is called, slowly because there are too few consumers.
F. Suseno, secretary-general of the Indonesian Automotive
Industry Association, attributes the slow public acceptance to
weak marketing strategy.
"The distribution of unleaded gasoline in Jakarta is not
widespread enough," Suseno told The Jakarta Post. "What is even
worst is that unleaded gasoline sells for Rp 1,000 (44 U.S. cent)
a liter, compared to Rp 700 (30 cents) for premium (ordinary
leaded gas)."
There are only seven gas stations that sell unleaded fuel in
all of Jakarta, a major inconvenience for motorists bold enough
to make the switch, he pointed out.
Suseno said as far as car manufacturers are concerned, there
are no real problems with the introduction of unleaded gasoline.
Most Japanese cars produced after 1983 are fitted with engines
which can take both leaded and unleaded fuels. Consumers can make
the switch without having to pay extra, he said.
Some additional costs will be incurred when manufacturers
begin to produce car engines solely for unleaded gasoline,
because they will have to install catalytic converter kits, he
said.
Adirizal Nizar, a director of PT Toyota Astra Motor, confirmed
that there won't be any immediate increase in car prices when
consumers switch to unleaded gasoline. There will be an increase
when car manufacturers begin producing engines that can only take
unleaded gasoline, Adirizal said.
Neither Suseno nor Adirizal were willing to say how much
additional costs car buyers will have to pay for such engines.
Well prepared
Pertamina is actually well prepared to supply the Indonesian
market, or Jakarta at the very least, with unleaded gasoline.
A $2 billion refinery plant in Balongan, West Java, which came
on stream last May, can produce low-leaded fuel. Most of its
output, in keeping with the name Export-Oriented I (Exor I), is
destined for overseas markets.
For now, Pertamina is only supplying 50,000 liters of unleaded
gasoline for the Jakarta market. Unleaded gasoline will be
available outside Jakarta starting in 1999, and it should become
available throughout the country by 2003.
Judosumardjo, Pertamina's director of provision and marketing,
said Indonesia had been slow in introducing unleaded gasoline.
He admitted that the slow public response to unleaded gasoline
had to do with its price, noting that in other countries,
unleaded gasoline is cheaper than leaded gasoline.
Margana Koesoemadinata, director of air pollution control at
the Environmental Impact Management Agency, argued that unleaded
gasoline should be made cheaper, or more attractive, then leaded
gasoline, if it is to succeed.
Various seminars have been held about the dangers of leaded
gasoline to people's health and countless articles have been
written on the subject. They do not seem to have any impact on
policy makers or motorists.
State Minister of Environment Sarwono Kusumaatmadja, in a
seminar last year, said air pollution is responsible for the
deaths of 15 percent of Indonesian children under five and for
6.2 percent of all deaths in Indonesia. In Jakarta the rate
doubles to nearly 12.6 percent.
Haryoto Kusnoputranto of the Public Health School of the
University of Indonesia said the content of lead in the air in
most parts of Jakarta has reached 1.2 ug/m3, well above the
internationally acceptable level of 1 ug/m3.
Haryoto said the impact on people's health is staggering: an
increase in the number of people with hypertension, coronary
heart and cardiovascular diseases, and a decline in children's
intelligence.
Anxiety problems
Last month, a University of Indonesia survey found disturbing
statistics about Jakarta's police officers who spend most of
their days trying to instill traffic order in the streets. A
total of 41.2 percent of 300 officers questioned were inclined to
suffer from certain psychopathic personality traits and as many
as 21.8 percent of them were suffering from anxiety problems, the
study said.
Pertamina might well draw some lessons from its unsuccessful
experience with gaseous fuel, regarded as a "clean-air fuel", for
motor vehicles, in planning its strategy for unleaded gasoline.
Launched in the mid 1980s, the project involved PT Blue Bird,
Jakarta's leading private taxi company. Now nearly 10 years
later, Blue Bird is about the only taxi company that has cars
which run on liquefied petroleum gas.
Now, 1,450 Blue Bird vehicles are fitted to run on gaseous
fuel, and many drivers are having problems operating in the city
because the gas tank can only take half as much as ordinary
gasoline, and there are only 12 stations selling gaseous fuels.
"That makes our drivers less mobile. And they have to spend a
long time queuing to refuel," Trismawan, PT Gas Biru president
said. "If they had a choice, drivers would opt for cars that run
on ordinary gasoline," he added.
"Drivers need to be as mobile as possible to pick up and drop
passengers," Blue Bird operation director Ateng Aryono said.
"I have to refill twice a day instead of only once. And I have
to drive a long way just to find a station that sells gaseous
fuel," a Blue Bird taxi driver complained.
Trismawan said the project might succeed if there are enough
stations selling gaseous fuel because gaseous fuel has its
advantages.
Car engines which are run on gas are cleaner and last longer.
The price of Rp 200 (8 U.S. cents) for a liter equivalent is also
cheaper.