Jakarta, Oct 4 (Antara) - While hosting the current APEC Summit in
Bali, Indonesia, which is developing electric and bio-fuel powered
vehicles, is introducing its green vehicles to delegates by fielding
eco-friendly buses to transport those in attendance.
The Indonesian government has provided 100 biodiesel-powered buses to
transport the flow of delegates and journalists at the meeting venue in
the Nusa Dua area, located in the country's tourist resort province of
Bali.
The
four state institutions involved in the launching of the green cars are
the Ministry of Trade, Ministry of Finance, Ministry of Industry, and
the Capital Investment Coordinating Board (BKPM).
"The use of biodiesel buses reflects Indonesia's commitment to
establishing a green economy," said Industry Minister MS Hidayat during
the launch of the buses on Friday.
Apart
from helping the environment, the use of green products such as
biodiesel, coming from Indonesia's palm oil plantations, can lead to the
creation of more jobs," he added.
It
was noted that in the development of environmentally friendly vehicles
the government involved the country's businesses.
According
to Wisnu Wardhana, chairman of the Asia-Pacific Economic Cooperation's
Business Advisory Council (ABAC), the government and businesses are
working closely to ensure energy sustainability to support Indonesia's
commitment to the continuation of sustainable development programmes.
He said that the 100 eco-friendly buses were powered by a combination of palm oil fuel and electricity.
Industry Minister MS Hidayat noted that the launch of environmentally
friendly cars reflects the government's commitment to the usage of green
vehicles, starting at the APEC Summit in Bali.
Besides biodiesel-fueled cars, the government is also launching its
electric powered car project. To that end, the government is planning to
set up an electric automotive technology development center and
establish other facilities for manufacturers that would boost production
of electric cars.
The incentives offered to participants will be in the form of import
duty exemptions and free value added taxes for the main components of
electric autos, such as batteries.
"We have decided to set up an electric automotive and technology
development center to boost the production to 10,000 electric cars in
2014," Coordinating Minister for Economic Affairs Hatta Rajasa said
recently.
"We will act faster and, if possible, mass production will be running
well by 2014. We have to provide incentives and legal protection for the
industry, which will be developed through state-owned firms and private
companies," said Hatta.
According to Industry Minister MS Hidayat, the government has announced
its plans to speed up the development of low-cost and green cars
(LCGC).
It said last month it was ready to launch an environmentally friendly
vehicles system, or LCGC, by inviting foreign automotive investors.
"Indonesia is ready to implement the LCGC system and is expected to
invite foreign investors to participate in the green car scheme," said
Budi Darmadi, Director General of Industry Leading Technology-Based at
the Ministry of Industry.
With a price of not more than US$10,000 (Rp100 million) per unit, LCGC
cars will be produced in an effort to reduce fuel oil subsidies provided
for conventional vehicles, which burden the state budget.
"The
government is planning to accelerate the development of green car
projects," Hidayat said. The green car movement is also expected to
reduce oil imports and enhance the development of environmentally
friendly fuels.
"The
programme can also safeguard the state, because it will reduce fuel oil
consumption and economise the country's foreign exchange reserves," MS
Hidayat.
Indonesia
is taking steps to reduce its fuels imports and promote the use of
biofuels at home, in response to its current account deficit and the
depreciation of its rupiah currency against the US dollar.
"Right
now, we need an immediate solution to the current account deficit. The
government will overcome the deficit by reducing imports, particularly
fuel oils," said Hatta Rajasa.
Seasonal
external and internal factors, as well as falling prices of export
commodities overseas, have been believed to contribute to the widening
of the current account deficit from US$5.8 billion, or 2.6 percent of
the country's GDP in the first quarter this year, to US$9.8 billion in
the second quarter, or 4.4 percent of GDP.
Indonesia
currently imports an estimated 35 million kiloliters of diesel oil per
year, including 17.5 million kiloliters for subsidized diesel oil, he
said.
To
reduce diesel oil consumption, the government would make it mandatory
for the public to use crude palm oil-based bio-fuel.
BKPM
Chairman Mahendra Siregar shared the minister's view that the usage of
bio-energy would reduce the nation's dependence on oil imports.
For
this purpose, the fuel subsidy must be reduced so the state's current
account can be improved. "Fuel subsidies should be reduced and bio-fuel
should be developed to reduce dependence on the subsidy. We should
become self-reliant," he added.
Indonesia's CPO production is currently on the rise, while, on the
other hand, the CPO price in the market is declining. Therefore,
Indonesia must protect its palm oil entrepreneurs and farmers so they
can continuously bring their product to market.
Officials noted that the price of CPO-based biofuel is lower than that of imported diesel oil.
According to Yudhohusodo, a former Indonesian farmers association
chairman, Indonesia has been the world's largest palm oil producer,
overtaking Malaysia as the world's largest palm oil producer five years
ago.
Indonesia's 2013 CPO production is projected to reach
25 million tons, well above Malaysia's CPO production forecast of 18.9
million tons, he stated.
In the meantime, Trade Minister Gita Wirjawan predicted that Indonesia
would be able to produce 50 million tonnes of crude palm oil (CPO) by
2030.
With that volume, global demand for CPO is predicted to become
saturated, allowing Indonesia to use its eco-friendly CPO as a source of
bio-fuel.
Therefore, the government is preparing the use of CPO as a source of
bio-fuel to help in the future development of green cars. And the
launch of 100 green buses at the current APEC events on Friday marked
the country's determination to go ahead with the development of its
eco-friendly vehicles, said officials.
The
introduction of the environmentally friendly cars on Friday was
conducted by Trade Minister Gita Wirjawan, Finance Minister Chatib
Basri, Industry Minister MS Hidayat, BKPM Chief Mahendra Siregar,
President Director of state-owned oil and gas Pertamina Karen
Agustiawan, ABAC Chairman Wisnu Wardhana, President Director of Bank BNI
Gatot M Suwondo, and entrepreneur Anindya Bakarie.***3***
(T.A014/INE/S012)
(EDITED BY INE)
(T.A014/A/BESSR/Suharto) 04-10-2013 22:03 |
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