Toyota to give away fuel-cell patents to boost industry

Yahoo – AFP, 6 Jan 2015

A man refuels Toyota Motor's fuel cell vehicle "Mirai" at a hydrogen station

in Tokyo on November 17, 2014 (AFP Photo/Yoshikazu Tsuno)

Tokyo (AFP) - Toyota will give away thousands of patents for its fuel-cell cars, it said Tuesday, in an effort to encourage other automakers into the new industry.

The world's largest vehicle maker said it will allow royalty-free use of about 5,680 patent licences, including 1,970 related to fuel-cell stacks and 3,350 concerning fuel-cell system control technology.

The firm also said the free patent licences will include about 290 items related to high-pressure hydrogen tanks.

Japanese auto giant Toyota Motor's fuel

 cell vehicle "Mirai" is displayed in Tokyo

on November 18, 2014 (AFP Photo/

Yoshikazu Tsuno)

The cost-free licences will be allowed "through the initial market introduction period" of fuel cell vehicles (FCV), which the company expects to last until about 2020.

Toyota will also open about 70 patent licences related to hydrogen stations -- the equivalent of gas stands for internal combustion vehicles, and a vital link in the chain for drivers -- indefinitely for manufacturers and operators.

"By allowing royalty-free use of FCV-related patent licences, Toyota is going one step further as it aims to promote the widespread use of FCVs and actively contribute to the realisation of a hydrogen-based society," the automaker said in a statement.

The announcement came after Toyota last month rolled out the world's first mass market fuel-cell car -- the four-door Mirai sedan -- in Japan.

The car -- whose name means "future" in Japanese -- will hit the US and some European countries, including Britain, Germany and Denmark, in 2015, Toyota has said.

It hopes to sell more than 3,000 units of the car by the end of 2017 in the United States, and up to 100 annually in Europe.

Fuel-cell cars are seen as the Holy Grail of green cars as they are powered by a chemical reaction of hydrogen and oxygen, which produces nothing more harmful than water at the point of use.

But a limited driving range and lack of refuelling stations have hampered development of fuel-cell and their cousin, all-electric cars, which environmentalists say could play a vital role in cutting greenhouse gas emissions and slowing global warming.

The Mirai can travel about 650 kilometres (400 miles) without refuelling, some three times further than an electric car, and its tank can be filled in a few minutes like gasoline engine vehicles, according to Toyota.

Related Articles:

Tesla opens patents to rivals in China to expand industry
Tesla gives up patents to 'open source movement'

Beijing to build electric car charging network

Want China Times, Xinhua 2014-06-28

An electric car charging station in Beijing. (File photo/Xinhua)

Beijing plans to establish 10,000 public charging spots for electric cars by 2017, the municipal government announced on Friday.

The charging facilities will be installed in airports and train stations, public parking lots, mall and supermarket parking lots, highway rest areas, electric car stores and gas stations, according to an electric car promotion plan published by Beijing Municipal Science and Technology Commission.

Zhang Jihong, deputy head of the commission, said that a network of charging devices for electric cars will be established within the fifth ring road of the city.

According to the plan, Beijing also plans to introduce private charging facilities.

The Chinese government has been encouraging consumers to buy electric vehicles as one of the solutions to the country's pollution problems, but the plan has been hindered by a bottleneck in the country's charging infrastructure.

Cars for high officials to switch from gasoline to gas

Bagus BT Saragih, The Jakarta Post, Jakarta, Mon, 01/16/2012

The government plans to equip all official cars used by President Susilo Bambang Yudhoyono’s Cabinet members and other high-level state officials with gas converter kits as part of the oil-to-gas conversion program.

“We have appointed [state-owned aircraft maker] PT Dirgantara Indonesia to produce the kits. But if the company fails to provide all the demanded kits, we will import more kits to fill the gap,” Coordinating People’s Welfare Minister Agung Laksono told reporters at the presidential office on Monday.

Agung added that the government expected to reach its goal by April.

The oil-to-gas conversion campaign was launched to support government plans to limit the amount of subsidized fuel used by private cars in Java and Bali, which will be gradually carried out from April.

The government hopes the program will allow it to reduce the fuel subsidy.(dic)

Related Article:

Public cars to get free gas converter kits: Govt

Green areas instead of gas stations on city's plan

Triwik Kurniasari, THE JAKARTA POST, JAKARTA | Thu, 03/19/2009 3:00 PM

The city plans to revive a program aimed at rejuvenating green areas in the capital, by closing down 25 gas stations and converting them into public parks.

Head of parks and cemeteries agency, Ery Basworo, said Wednesday the administration had allocated a budget of Rp 75 million to close down each gas station.

"It will be expensive to demolish the gas stations. We don't have much of a budget for that this year," Ery said at City Hall.

"So the first step will be to close every gas station along the city's green areas.

"We will do this in September. We will inform every gas station owner before we do that," he said, adding that the agency proposed to carry out the project in 2008, but the City Council had rejected it.

He said the administration owned the land the gas stations were built on and had rented it out to businesses.

"The gas station owners will not get any compensation because they do not own the land," he said.

"An exception will be made if the gas station owner has proof that they own the land," said Ery.

He added the agency had teamed up with the city's legal bureau to prepare for any possible lawsuits from gas station owners.

According to the agency, the gas stations occupied about 5 hectares of the city's green areas.

Some of the gas stations are in Central Jakarta, on Jl. Gereja Theresia, Jl. Diponegoro, Jl. Hayam Wuruk and Jl. Kwitang Raya, while others are in South Jakarta, on Jl. Suryo/Senopati, Jl. Lapangan Roos and Jl. Melawai Raya.

Green areas in the capital have shrunk with the burgeoning of skyscrapers, shopping centers, apartments, hotels and office buildings, which started in the early 1970s.

Deputy Governor Prijanto said green areas in the capital currently accounted for 9.9 percent of the city's area.

The administration's objective is to increase the city's green areas to 13.94 percent of the total area of Jakarta (63,744 hectares) by 2010, which is far below the 30 percent set by the central government.

Wati Amir, a legislator at the House of Representatives' Commission VII for energy affairs, urged the administration not be afraid to close down gas stations set up illegally.

"The administration should not be afraid of shutting down a gas station just because it is owned by a state official," said Wati.

"Gas stations shouldn't be built along one of the city's green zones like Pakubuwono."

"Today, children in the area have nowhere to play outside because there are very few parks there. So it's time for the administration to shut down those gas stations and convert them back into parks," said the member of the Golkar Party.

Many business people with political connections and state officials own gas stations around town.

One of the gas stations located on Jl. Jend. Sudirman, near the Semanggi bridge in Central Jakarta, belongs to Taufik Kiemas, former president Megawati's husband.

Wati said the administration should immediately implement its plan because green areas played a very important role in making the city more livable.

Pertamina to Take Over Fuel Stations

TEMPO Interactive, Jakarta, Wednesday, 07 January, 2009 | 12:16 WIB 

PT Pertamina is reviewing the contract involved gas station owners as there have been fuel shortages in several regions in Indonesia since January 2. 

“We will review the contracts. If the shortages are because of a owner’s carelessness, Pertamina will take over the gas station,” said Pertamina's corporate secretary, Toharso, on Wednesday (7/1), in Jakarta 

He said that Pertamina was monitoring fuel supplies on a 24-hour basis. 

“There is no reason that fuel stations should not have fuel supplies. Distribution is running normally,” said Toharso. 

He went on to say that there were only one or two fuel stations running out of supplies in several regions. 

“Fuel stations run out of supply when they are late in sending in delivery orders or paying their bills,” said Toharso. 

SORTA TOBING

Pertamina admits implementing discriminatory policy

The Jakarta Post, Jakarta | Sun, 01/04/2009 3:40 PM  

PT Pertamina admits Sunday that it has been implementing a discriminatory policy between "Pasti Pas" certified gas stations and those without, a representative told tempointeraktif.com 

"We want the gas stations that have yet to certify themselves to start upgrading their service to the public," Pertamina Marketing and Trade Director Achmad Faisal said. 

The total number of Pertamina gas stations are 4,300, he said, however, the number of that which have received certification are merely 1,000. 

According to Faisal, "Pasti Pas" certified gas stations are prioritized in every fuel shipment delivery and given a Rp 200 per liter profit margin as opposed to non-certified establishments, which are only eligable to receive Rp 180 per liter. 

Pertamina President Director Ari Soemarno added that the certification was necessary so as to ensure that the entrepreneurs did not cheat in providing service. 

"So we're making it easy for certified gas stations, whereas the rest would have to catch up in their upgrading efforts," he said.

Pertamina cuts further non-subsidized fuel prices

The Jakarta Post, Jakarta | Thu, 01/01/2009 11:47 AM  

State oil and gas company PT Pertamina has reduced the price of its non-subsidized high-octane fuels as of Thursday for the Greater Jakarta market. 

Pertamina said in a statement that it lowered the prices of its Pertamax, Pertamax Plus and Bio Pertamax to between Rp 5,800 (about 57 U.S. cents) and Rp 6,000 per liter from between Rp 6,500 and Rp 6,800. 

The new prices, however, would only be applied for gas stations certified by Pertamina as "Pas Pasti" (exact and certain). 

"This policy is to give more choices for the people," Pertamian spokesman Rizkani Noor told Antara news agency. 

Pertamax prices for other gas stations in Jakarta, as well as in Banten and West Java are reduced to Rp 5,925 per liter from Rp 6,500, while Pertamax Plus prices are set at Rp 6,400 from Rp 6,800. 

For other parts of Indonesia, Pertamia cuts Pertamax prices to Rp 6,200 per liter for Central Java, East Java and Bali, Rp 6,300 for Sumatra island, Kalimantan and Sulawesi (except Central Sulawesi, where Pertamax price is set at Rp 7,300). 

Pertamax Plus prices are also cut to Rp 6,000 for Batam island, Rp 6,600 for Central Java, East Java, Bali, Aceh, North Sumatra (except Medan: Rp 6,500) and Riau, and to Rp 6,700 for Kalimantan island.  

Last month, coinciding with its anniversary on Dec. 10, Pertamina cut the prices of its Pertamax, Pertamax Plus and Bio Pertamax by Rp 300 per liter to Rp 6,500 a liter, Rp 6,800 per liter and Rp 6,500 per liter, respectively.

Police Close Another Gas Station After Claims of Tampering

The Jakarta Globe, Nurfika Osman 

The Jakarta Police have shut down a gasoline station in South Jakarta and detained one suspect for allegedly tampering with the pumps to supply short measures of fuel to customers, a senior police officer said on Tuesday. 

The police closed the station, located near Tanah Kusir Cemetery, on Monday afternoon after they received complaints from customers that the volume of gasoline pumped into their tanks did not match the figures displayed on the fuel pumps. 

Rudi Setiawan, head of the Jakarta Police’s environmental resources unit, said that a suspect, a manager identified as IS, had been detained after being questioned at Jakarta Police Headquarters on Monday night. 

“He may be charged with violating the consumer protection law, which carries a maximum sentence of five years in prison or a Rp 2 billion [$184,000] fine,” Rudi said. 

Police had questioned five people, four on Monday and one on Tuesday, he said. One of them was the owner of the gas station. The rest were operators and administrative staff. 

“So far, the owner claims that he knew nothing about the scam, but we will keep a close eye on him,” Rudi said. 

Electronic devices had been attached to the gas station’s fuel dispensers that reduced the volume of gas pumped into customers’ tanks, he said. 

“The devices can reduce the flow by one and a half liters per 20 liters of fuel,” Rudi said. 

The devices in question had been seized. 

He said that the police would continue to investigate the case as there was a possibility that new suspects would be named. 

A week ago, the Jakarta Police closed down a gas station located on Jalan Diponegoro, opposite Cipto Mangunkusumo Hospital in Central Jakarta, and detained one suspect after finding similar devices in use there. 

“As of today, we have detained four suspects in connection with the Central Jakarta case,” Rudi said, following an investigation lasting several days. 

The four suspects are the owners, JS and SF, an operational manager, AR, and a supervisor, EF.

Parks agency aims to convert aging gas stations into parks

Tifa Asrianti, The Jakarta Post, Jakarta | Fri, 11/14/2008 8:13 PM  

Jakarta's Parks Agency has filed a budget proposal to fund the conversion of 29 gas stations located in the green belt into public parks in 2009, an official said. 

Agency head Ery Basworo told reporters Friday he was asking the City Council for Rp 2.17 billion (US$188,800) to complete the green makeover before the end of 2009. 

Ery said the cost to turn one gas station into parkland was between Rp 50 million to Rp 75 million. 

"The budget will be used just for turning the gas station into park space. The gas station owners will not get any compensation," he said. 

The stations have not had their operating licenses renewed. Two highly visible stations of the 29 awaiting conversion are located within the Semanggi interchange, South Jakarta. 

The agency had already proposed a budget for the operation which the council rejected. 

"We hope the council will approve the funding for 2009 because we really need to add more green spaces in the city," he said. (and)

Gas stations to be moved

The Jakarta Post

JAKARTA: The administration plans to relocate 27 gas stations located in various green areas around the city.

The head of the Jakarta Parks Agency, Sarwo Handayani, said two of the stations to be relocated were on Jl. Sudirman and Jl. Thamrin in South Jakarta.

"Green areas are supposed to be free of concrete buildings," she said Monday, as quoted by tempointeraktif.

She said the agency had allocated Rp 2 billion (approximately US$210,000) for the relocation program.

The agency has asked for Rp 150 billion from the City Council to finance various programs this year.

'Everything we do can harm the environment'

The Jakarta Post

While Indonesia's climate change delegation gather at the UN conference in Bali, many organizations in Jakarta are holding environmental campaigns, including tree seedling give-aways and planting activities. But while the world is watching the creation of a roadmap for a new international agreement on environment protection, many people continue to disregard important climate change management messages. Much of the city's population continue to dispose of their garbage into river systems, or exploit the city's groundwater, or build commercial premises on water catchment areas. So The Jakarta Post hit the streets this week to find out how to involve more people in environmental and climate change management practices.

Jakarta Governor Fauzi Bowo:

Everyone must realize that everything they do may harm the environment.

The impact of climate change is evident ... in floods.

When (the public) litter and thus clog the rivers, they are being harmful to the environment. In consequence, they will be in danger of floods.

The residents must stop throwing garbage into the rivers.

The Jakarta administration itself has initiated environmentally friendly programs by imposing the emission test for vehicles and using compressed natural gas for busway buses.

Wardah Hafidz, urban poor activist:

Global warming has become a problem (and it's) right under our nose. So, ecological awareness must reach ... the lowest level of the society, the poor.

We currently hold an event that also aims to familiarize (the) urban poor with ... global problems and how to deal with (them) (called) Human Rights Day on Dec. 10.

Lia, 34, an employee of a private company:

I think, most people are not aware of preserving the environment (on) a daily basis, let alone knowing about ... the climate change in Bali.

When my father washes his car, he always lets the water continuously run from the tap.

It's true that we do not have to pay for the water because we use ground water, but still, that is not right.

In addition to that, my father also likes to throw trash anywhere he pleases, especially while driving.

The minute I forbid him, he will try to follow my advice, for once. But then he will repeat his violations in other times.

My older sister, a graduate of Biology from the Bogor Institute of Agriculture (IPB) who is now working as a researcher in a government office, is no different.

One time, when I (prompted a) family discussion on how the industry contributes a great deal of damage to our environment, the two of them simply said, "Well, the industry is important for our country's development."

That's it. They (did not) ... touch ... on the subject I brought up.

Meanwhile, I also regret the waste management at my campus, the Bandung Institute of Technology.

Since two years ago, around its campus, it has provided three sets of garbage bins designated for organic, paper and plastic garbage.

But neither the students nor the garbage pickers throw trash into the right designated bin.

What bothers me most is the fact that when the trash was picked from the three-set-bins, they were just mixed into one dump site.

So, what's the point of distinguishing the bins?

It is also difficult for me to find garbage bins in every corner of this city. The lack of garbage bins at public places, has forced me to turn my pocket and my bag as temporary trash bins.

It's ok if the trash is dry. But it's not ok if the trash is wet.

So, I end up throwing garbage anywhere, with a guilty feeling haunting me.

Elly Kristanti, 66, an employee of a private company:

I have not heard about the conference.

However, I ... heard about the global warming issue (after) I watched The Oprah Winfrey Show some time ago.

And I think global warming has started to happen in Jakarta. Just look at the extreme weather condition nowadays.

When it rains, floods are everywhere, when it's a dry day, it is hot as hell.

All of that happens due to zero awareness to preserve the environment from both the citizens and also the industrial players.

Environment awareness is not something formed in a snap. It needs to be nurtured (from) as early as ... kindergarten level and in the family.

My only hope ... the conference ... can make the entire global citizens simultaneously aware of the seriousness of this global warming condition and act upon a shared-commitment to preserve the environment in every corner of this globe.

Am I hoping too much?

Govt fuel price plan gets thumbs-up from observers

JAKARTA (Jakarta Post): The government's plan to limit the sales of subsidized premium gasoline to public vehicles and motorcycles, and to sell a new type of gasoline to private cars in order to curb the rise in thefuel subsidy, has received approval from economic observers.

Economist Didik Rachbini said here Wednesday the government's plan in reducing the rise in the subsidy resulting from the surging crude oil prices in the world market was "creative", while oil industry observer Kurtubi said the government had done the right thing, but it should monitor its implementation.

"The government must do anything it can to stop the gasoline subsidy for private vehicles to save the state budget," Didik told The Jakarta Post.

Didik, who is also a member the House of Representatives (DPR)representing the National Mandate Party (PAN), said although the plan would need to be closely monitored, it would be better than raising the price of premium gasoline, currently sold to the public at Rp 4,500 per litter, with a subsidy of more than Rp 2,500 a litter.

The government said Tuesday that under the new plan, the government would limit sales of the highly subsidized gasoline to public vehicles and motorcycles.

For private cars, the government will sell 90-octane gasoline to replace 88-octane premium gasoline.

Fuel prices for industry rise by up to 21 percent

The Jakarta Post, Jakarta

State oil and gas company Pertamina will increase the prices of fuels for industrial and commercial use by between 15 and 22 percent today (Dec. 1) in line with soaring crude oil prices on the world market.

Pertamina said Friday that the prices of unsubsidized diesel for transportation and industrial use would be increased by 15.9 percent to Rp 8,300 (about 89 U.S. cents) and Rp 7,039 per liter, respectively, while the price of unsubsidized premium-grade gasoline would be increased to Rp 7,450 per liter.

Meanwhile, the price of kerosene will go up by 21.7 percent to Rp 8,347, while that of fuel oil will rise by 15.9 percent to Rp 7,700 per liter.

Pertamina said the price increases were in line with the rise in the Mid Oil Platts Singapore (MOPS) index, which is used as the reference for determining the prices of non-subsidized oil-based fuels.

The increases were larger than last month's increases of between four and six percent due to a 1.87 percent depreciation in the value of the rupiah against the U.S. dollar.

Subsidized Premium gasoline and transportation diesel remains pegged at Rp 4,500 and Rp 4,300 per liter, respectively, while the price of heavily subsidized kerosene for use by households and small enterprises also stays the same at Rp 2,000 per liter.

Petrol stations to provide natural gas

Mustaqim Adamrah, The Jakarta Post, Jakarta

State oil and gas company Pertamina, along with foreign competitors Petronas and Shell Indonesia, will soon supply compressed natural gas (CNG) to the public.

Jakarta Mineral and Mining Agency spokeswoman Peni Susanti said Friday it was part of their obligation to provide and operate CNG pumps at their existing gas stations in the future, although she did not set a deadline.

"Pertamina, Petronas and Shell signed an agreement with the city administration in September in which they promised to provide natural gas at their gas stations," she said at City Hall.

"The agreement is backed up by an existing city bylaw that requires them to install natural gas pumps and supply natural gas at every gas station they have," she added.

Speaking after a meeting with a number of city officials and Governor Fauzi Bowo, Peni said Pertamina would start supplying natural gas to the public in December in conjunction with the state firm's birthday.

Meanwhile, Petronas, Malaysian state oil and gas firm Petroliam Nasional Berhad, and Shell Indonesia, the local arm of Royal Dutch Shell Plc., will commence CNG provision next year, Peni said.

She said as a pilot project for the agreement, Pertamina's CNG would be available at its station on Jl. Pramuka, East Jakarta, Petronas's station on Jl. Pasar Minggu, South Jakarta, and Shell Indonesia's station on Jl. Gatot Subroto in South Jakarta.

Currently, out of existing 14 gas stations equipped with CNG pumps, only seven are operating, Peni said.

The city has a total of 264 gas stations.

Petronas, which is planning to build a total of 22 gas stations in Greater Jakarta, currently has two stations, while Shell has 10, also in Greater Jakarta.

Peni said both Petronas and Shell Indonesia were yet to specify the exact date of their initial CNG provision.

Most customers of CNG are Transjakarta buses and some bajaj. Prompted by worsening pollution, the city has encouraged more vehicles to use CNG, which is considered to be cleaner.

'Alternative energy needs incentives'

Ika Krismantari, The Jakarta Post, Shanghai

A package of clear-cut incentives is needed if Indonesia's renewable fuel projects are to become a reality, says a senior executive of the world's third largest energy company, Shell.

Shell Hydrogen vice president Duncan Macleod said that it was urgent for the government to provide support in the form of financial assistance and tax incentives for energy companies planning to invest in the environmentally friendly fuel sector.

"For a start, it is not easy to develop clean fuel. That's why we need the government's support, maybe in terms of a mandate or financial support. But in the long run, when the business has developed and a lot of players have been involved, let the market decide where it will go," Macleod said.

A number of companies, including Britain's BP, China's CNOOC and a number of local firms, are lining up to enter the country's biofuel sector, with total investment commitments standing at some Rp 160 trillion as of last July.

However, none of the plans have been realized to date pending government regulations making the use of biofuel mandatory and the introduction of incentives.

Though the government issued a special regulation earlier this year to provide incentives for the development of biofuel feedstock plants, it is short on detail and implementation procedures.

Macleod said Indonesia should learn from China, which has shown a strong commitment to supporting the development of clean and sustainable energy through state financial assistance.

During the ongoing Michelin Challenge Bibendum conference being held here to promote sustainable mobility through the development of various sources of energy, Shell, with the support of the Shanghai government and China's Tongji University, launched the first hydrogen refueling station for fuel cell vehicles.

"This is a trial project, and not commercially operational yet. We aim to create awareness among the people about the existence of this clean energy," Shell China downstream director Dennis Cheong told The Jakarta Post.

Tail-pipe emissions from hydrogen fuel cell vehicles contain virtually no carbon, so that the technology has the potential to significantly improve local air quality.

Clean energy is very important for China, which is the world's second largest automotive market with more than 8 million cars sold per year, and whose demand for energy is expected to more than double in the next two decades.

As well as government support to turn alternative energy projects into reality in Indonesia, Macleod also stressed the importance of a level playing field for all players involved in developing non-conventional fuels so that they would be able to compete with conventional subsidized fuels.

"If you have highly subsidized fuel products in the market, then it will be hard to be able to develop other kinds of alternative energy," Macleod said.

Shell is the world's largest distributor of transportation biofuel, with 3.5 billion liters sold in 2006.

In Indonesia, Shell currently sells high-octane fuels in 18 locations in Jakarta, off-loading some 18 million liters of gasoline every month.

Govt to display eco-friendly transportation at Bali meet

Adianto P Simamora, The Jakarta Post, Jakarta

The Indonesian government will exhibit its eco-friendly public transportation to the international community during the upcoming climate change conference in Bali.

However, since most of the country's public transportation vehicles are still powered by fossil fuels, the government will swap the engines of the vehicles to be put on display in Bali with ones that run on compressed natural gas (CNG) first.

"We will send the three-wheeled pedicab bajaj, the Metro Mini public mini-buses and CNG taxis to Bali from Jakarta on Dec. 2," Mangisara Lubis, in charge of site events for the Bali meeting, told reporters Friday.

"The display will become part of the site events at the Bali conference."

He said about a hundred businesses related to renewable energy and green products would also exhibit products.

Mangisara, also an adviser to the environment minister, said the vehicles would have to travel with their own supply of CNG for refueling since filling stations along the route to Bali wouldn't have any.

"We hope this will push world leaders, including Indonesia's, to promote lower emission fuels such as CNG for the sake of climate change," he said.

Indonesia will host the 13th Conference of Parties of the United Nations Framework Convention on Climate Change (UNFCCC) from Dec. 3 to 14 in Bali.

Over 10,000 delegates will attend the conference to discuss ways to combat climate change.

The Intergovernmental Panel on Climate Change (IPCC), an independent group of experts tasked with assessing scientific aspects of climate change, reported that the use of fossil fuels including in transportation and industry was the main contributor to greenhouse gas emissions.

High concentrations of greenhouse gasses generate climate change.

Mangisara said the government would conduct vehicle emissions testing along the route of a parade to feature public transportation vehicles in Bali.

"We will doing tests on ... private and other vehicles at 13 gas stations along the route as an effort to boost public awareness of climate change," he said.

To improve air quality, the government ordered all public transportation to switch to CNG, effective 2005, as part of its Blue Sky program.

Although the pilot program is in Jakarta, CNG-fueled public vehicles in the city are limited to busway coaches and 250 bajaj pedicabs.

The organizer of the Bali conference earlier said all motor vehicles entering Bali's Nusa Dua area during the conference had to be powered by biofuel.

Mangisara said President Susilo Bambang Yudhoyono would dispatch a group of cyclists from Jakarta to Bali on Tuesday as a welcome brigade for the conference.

The 15 cyclists will pedal the 1,433-kilometer route to Bali in 20 days.

New players may get to sell subsidized fuels

Ika Krismantari, The Jakarta Post, Jakarta

Downstream oil and gas regulator BPH Migas may allow Dutch-based oil giant Shell and Malaysia's Petronas to join state-owned oil and gas firm Pertamina in selling subsidized fuels.

BPH Migas representative Adhi Subagio Subono told The Jakarta Post on Tuesday that the designation of Shell and Petronas as subsidized fuel distributors, despite their lack of storage facilities, would benefit consumers as the increased competition would force Pertamina, currently the sole distributor of subsidized fuels, to provide better services and reduce prices.

"New players could establish joint storage facilities, or if Pertamina agreed, they could share Pertamina facilities to overcome their lack of space," Adhi said.

Pertamina still holds the exclusive right to distribute subsidized fuels, despite the partial liberalization of the country's retail fuel market in 2005.

The government has said that the exclusive right continued to be awarded to Pertamina as no other operators had been able to meet the requirements, such as having sufficient distribution networks and storage facilities.

As a result, the newcomers, including Shell and Petronas, have only been able to sell non-subsidized high-octane gasoline in Indonesia.

BPH Migas has not decided whether to hold a tender or to resort to the direct appointment mechanism to select the distributors of subsidized fuels for next year.

As a result, the appointment of distributors, which should have been announced in August, has been delayed.

A committee made up of BPH Migas, the Finance Ministry and the Energy and Mineral Resources Ministry is still discussing a number of contentious issues, which are reported to include policy changes so as to allow more players to become involved in the distribution of subsidized fuels.

Adhi said that the other mechanism being discussed involved a competitive tender under which the winners would be selected based on the price margin offered and the scope of their distribution areas.

Only those bidders that offered lower price margins and wider distribution areas would be allowed to sell the subsidized fuels, he added.

Pertamina marketing and trading director Ahmad Faisal said Tuesday that his company had sent a letter to BPH Migas to express its readiness to serve as the distributor of subsidized fuels next year.

Indonesia, with a population of some 220 million people, represents an attractive market for gas retailers as motor vehicles account for almost half of national fuel consumption, which currently stands at some 60 million kiloliters per year.

A number of oil giants, such as U.S.-based Chevron and French oil firm Total, have been lining up to enter the country's retail fuel market, but are still waiting for the government's latest decision on subsidized fuels, which account for 95 percent of Indonesia's fuel market.

Jakarta sees cleaner air through CNG use

Adianto P. Simamora, The Jakarta Post, Jakarta

In an effort to overcome the limited piped gas network in the capital, the Jakarta administration plans to adopt a mother-daughter system to distribute compressed natural gas (CNG).

Under a mother-daughter system, gas is compressed at a mother station and delivered via a "tube trailer" to a daughter station. Mother-daughter systems are usually implemented when piped natural gas is not available.

"We will conduct a pilot project using the mother-daughter system in Jakarta next year," Peni Susanti, head of the City Mining Agency, told reporters Wednesday.

The plan to introduce a mother-daughter system is aimed at supporting the central government's blue sky project to improve air quality in the city.

Jakarta is currently the pilot project city for the blue sky project, which requires all public transportation to use CNG.

Peni said many of the existing fuel stations in the capital were located far from gas pipe networks.

The agency signed a memorandum of understanding (MOU) with the operators of Pertamina, Shell and Petronas fuel stations to construct more stations selling CNG.

Of the 264 fuel stations in Jakarta, only seven currently sell CNG.

"Many of the fuel stations have allocated space for CNG outlets, but they are yet to receive CNG supplies," she said.

PT Perusahaan Gas Negara (PGN) earlier said the existing gas network could only meet some 40 percent of the gas demand in the capital.

The existing gas pipes are located along Jl. Daan Mogot, Jl Raya Pluit Utara, Jl. Raya Pluit Timur, Jl. R.E Martadinata, Jl. Sunter Barat, Jl. Sunter Selatan, Jl. Yos Sudarso, Jl. Kelapa Gading, Jl. Raya Bekasi and Jl. Pemuda.

The CNG project was first introduced in 1997, but because of the limited number of fuel stations selling CNG, public interest has remained low.

Some taxis, which previously used CNG, have gone back to using diesel.

In 2005, the administration issued a bylaw on air pollution control requiring all public transportation to switch to CNG.

To meet the target, the administration, PGN and Pertamina signed an MOU on a sustainable supply of CNG in the capital.

Pertamina, the state oil and gas producer, will guarantee the fuel supply, while PGN will be responsible for distribution.

Deputy Governor Fauzi Bowo called on the operators of fuel stations to improve the quality of fuel to help improve the city's air quality.

"Since there are only a few industries operating in the capital, the air pollution is largely due to the poor quality of fuel used by vehicles," he said at a seminar organized by the City Mining Agency.

"We need more eco-friendly fuels to help clean the city's air."

Fauzi, who will be installed as governor next month, said his office will set tougher standards for fuel sold in Jakarta to meet European emissions standards and help improve the quality of air in the capital.

The government announced the implementation of Euro II emissions standards at the beginning of this year, requiring the use of unleaded gasoline or diesel with low sulfur content with a maximum of 500 ppm (particle per milliliter).

However, sulfur content in diesel fuel sold throughout the city still sits at around 3,300 ppm.

Fuel shortage hits Jambi city

JAMBI (The Jakarta Post), Jambi province: A fuel shortage has affected Jambi city, the capital of Jambi province, for the past four days, resulting in long lines at the city's gas stations.

The shortage has seen the retail price of gasoline soar from Rp 4,500 (50 US cents) per liter to Rp 6,000.

"The fuel shortage is the result of a 50 percent cut in fuel supplies to all gas stations in the city," Kadir, the manager of the Kebunjeruk gas station, said Wednesday.

He said his station, which normally receives a supply of 40 tons of gas per day, is now only getting 20 tons.

The gas sells out within hours, he said.

Head of the Kasang fuel depot owned by state oil company Pertamina, Adnan Zhodhy, said there had been delivery delays from the depot to gas stations in Jambi because of the low water level of the Batanghari River.

Boats used to transport the fuel are unable to berth near the depot, he said.

Shell targets more growth in Indonesian market

Ika Krismantari, The Jakarta Post, Jakarta

Since the government opened Indonesia's downstream oil and gas business two years ago, the sector has attracted numerous new players interested in entering the market.

A subsidiary of oil giant Royal Dutch Shell Plc, PT Shell Indonesia was the first foreign oil giant to enter Indonesia's retail gasoline market when it opened its first gas station in Jakarta in 2005. This was made possible only after the government revoked the monopoly held by state oil and gas firm PT Pertamina over the country's non-subsidized gasoline retailing industry.

Following on the heels of Shell were Malaysian state oil and gas firm Petroliam Nasional Berhad, or Petronas, and a number of other international companies.

The Jakarta Post recently interviewed the newly appointed president director of Shell Indonesia, Darwin Silalahi, on the company's plans in the downstream sector.

Question: How do you see Indonesia's retail gasoline market following the liberalization of the sector in 2005

Answer: For major players such as Shell, the retail business is significant and a critical part of our portfolio business. We will always be looking at business opportunities in emerging markets such as Indonesia. Indonesia has always been on the radar screen of Shell and, in fact, Shell actually had a retail development team in anticipation if the government opened the market.

Indonesia, with over 220 million people, is one of the key strategic markets for Shell globally, and Shell is keen to grow its business in Indonesia. Our global retail strategy is to grow in high-growth markets, such as Indonesia.

Indonesia is a highly under-pumped market, meaning that the number of stations, compared to the population, is still too small. Compare it to Malaysia, where we are number two in the country. There, the population is between 20 and 30 million people, and they have 900 stations. Indonesia as a whole only has 3,000 plus pump stations, and that means a huge growth potential.

The government is considering opening up the entire retail market for other business players, either by easing the requirements for distributing subsidized fuels or revoking the subsidy. Your comment on this?

What we need is predictability and clarity in the way the governing regulation is implemented. This is very important for players which will be looking at investment with suitable size and a long-term time line.

The way we see it the government seems to be serious about reducing or taking out as much of the subsidy as possible from the state's budget. We hear the plan for the government is to open the market for subsidized fuel.

If there is a plan to open the subsidized fuel market, I think that will allow us to be able to serve our customers better with a broader portfolio of fuel products. And that is something that we are looking forward to doing.

What is Shell's plan to open more gas stations outside Java? Will you also be interested in placing a bid in the tender for subsidized fuel?

It's fair to say that for us Indonesia is not just about Jabotabek (Greater Jakarta). Our longer term plan will be to serve the entire country, in a way that makes sense for the customers.

Our development to be able to serve a wider section of Indonesian customers will be contingent on a few things, such as access to subsidized fuels and how quickly we roll out the plan, as well as how well customers respond to our propositions.

We need to make sure that we have the ability to adjust our propositions depending on customers' characteristics, market economics of the area, the supply chain and the regulatory framework of the area.

We don't normally disclose the next location for very obvious reasons. We need to make sure that all the products will work and are in place. We will be not talking in terms of the rate of growth of number of stations, because that is very much determined by how fast the market is being opened up.

And for joining the bids for subsidized fuel tender, we need to make sure that we are able to qualify for that tender, and the key there is distribution infrastructure. I think for us at this stage of development, there is still significant room for growth there, both in Jakarta and other locations.

Beside the gasoline business, is Shell also interested in tapping other fuel markets In Indonesia?

We love to be pioneering the opening up of the Indonesian downstream market, and Shell will also be the first to enter into the Indonesian aviation fuel industry. We have signed an agreement with Pertamina in the aviation sector (in April).

Shell is a global leader. We are serving 20,000 aircraft at 1,100 airports. We are very happy to add Jakarta's Soekarno-Hatta airport to our portfolio of 1,100 airports.

We are also excited to hear about the government pushing strongly for the conversion of kerosene to LPG.

We are currently looking into how and when we can participate in this emerging LPG market here. After all, we too are a global leader in LPG sales.

How do you respond to plans by other major oil firms, such as Total and Chevron, to play a role in Indonesia's downstream business?

Globally, we have proven to be the world's largest retailer with more than 46,000 stations operating globally. And in a lot of markets, we have been competing head to head with some of the global companies you have mentioned, and the fact is that we are still commanding our global leadership.

Shell welcomes new competitors to the Indonesian retail space and we believe it is the customers who will eventually benefit.