Government Prepares Three Alternatives for Financing Biodiesel
Wednesday, 01 November, 2006 | 17:01 WIB

Tempo Interactive, Jakarta: The government is considering three alternatives for funding biodiesel projects, said Wimpie S. Tjetjep, Head of the Coordination Team for Alternative Energy Supply and Utilization Program, after a coordinating meeting on the alternative energy program.

State Minister for State-Owned Enterprises Sugiharto, Industry Minister Fahmi Idris, Agriculture Minister Anton Apriyantono, Transportation Minister Hatta Rajasa and Energy and Mineral Resources Minister Purnomo Yusgiantoro also present at the meeting.

The first alternative, said Wimpie, is for biodiesel projects to use funds from departments involved with biodiesel utilization as alternative energy to be relocated to the Revised State Budget 2007.

The second alternative is to use funds from other posts at the Department of Finance.

The third alternative is to use funds in allocated posts at the Department of Energy and Mineral Resources that are still “starred” or existing funds that can be partly diverted for alternative energy.

The amount of funds from each of these alternatives, said Wimpie, is yet to be determined.

However, at least the construction of alternative energy plants that were delayed in 2006 can be carried out in 2007.

“New programs are also to be added,” said Wimpie yesterday (10/31) in Jakarta.

According to him, the three alternatives are required because next year there will not be any 'carry-over' mechanism or fund disbursement for departments and institutions that did not spend all their budgets this year.

Wimpie has estimated that only 60 percent of the budget for alternative energy programs of around Rp300 billion can be realized this year.

“Around 40 percent or between Rp100 billion and Rp150 billion of the budget for alternative energy programs is not yet realized. We can't carry it over, so it must be re-budgeted in 2007 with one out of three options,' he said.

Therefore, the team that he leads will make a clearer program to be in line with the budget that the government allocates.

According to Industry Minister Fahmi Idris, the alternative energy project will still run and will not experience funding problems.

However, there will be large changes to the initial plan for constructing the biodiesel plants.

The alterations will be by increasing the number of plants instead of decreasing production capacity.

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