KEROSENE SUBSTITUTION PROGRAMS IN INDONESIA 印度尼西亚煤油替代程序.pptVIP

KEROSENE SUBSTITUTION PROGRAMS IN INDONESIA:INSTITUTIONS AND PUBLIC POLICIES Asclepias Rachmi Indonesian Institute for Energy Economics 31st IAEE Pre Conference on Clean Cooking Fuels Technology Istanbul, 16-17 June 2008 Agenda Energy Consumption Fuel Price Policy Kerosene substitution program The Program in brief Role of institutions Evaluation: Program Implementation Complicating Factors Energy Security Concluding Remarks ENERGY CONSUMPTION Energy Consumption in 2005 (1) Energy Consumption in 2005 (2) FUEL PRICE POLICY Fuel Pricing Policy (1) As stated in the Blue Print of Kerosene to LPG Substitution Program: Certain fuels (Bahan Bakar Tertentu) which requires subsidy: price setting by the Government through laws and regulations Fuels for national needs: to be determined B-to-B, approved by the Government Fuels used by large amount of people but unsubsidized: prices are based on certain formulas General fuels: no price regulation, treated similar to general commodities Fuel Pricing Policy (2) Fuel Pricing Policy (3) KEROSENE SUBSTITUTION PROGRAM The Substitution Program in Brief Targets: ‘Zero Kero in 2012’: No subsidized kerosene for cooking in 2012 Kerosene available at economic price and in a higher value form (e.g., aviation turbine) Distribution of 3kg LPG to 6 million household in 2007 and 42 million household in 2012 Implementation strategy: Reduce kerosene subsidy gradually, distribute LPG 3kg package based on priority lists Develop LPG infrastructure Involve local businesses Prudent supply capping of subsidized kerosene Intensive campaign on using LPG safely Improve government role (central, provincial, municipal, community level) in monitoring the distribution package Distribution of LPG package: 2007: pilot project in Jakarta, initial step in 13 municipalities in Java, then other areas in Java-Bali 2008 onward: Sumatera and other islands in steps Role of Institutions As stated in Blue Print: Dept of EMR: coordinator, policy Dept of Financ