Imperialisme Amerika di Sektor Migas Indonesia (7)

Amerikanisasi BBM

http://www.usaid.gov/pubs/cbj2002/ane/id/497-013.html

Indonesia
ACTIVITY DATA SHEET

PROGRAM: Indonesia

TITLE AND NUMBER: Energy Sector Governance Strengthened, 497-013
STATUS: Continuing

PLANNED FY 2001 OBLIGATIONS AND FUNDING SOURCE: $4,000,000 DA
PROPOSED FY 2002 OBLIGATIONS AND FUNDING SOURCE: $4,000,000 DA
INITIAL OBLIGATION: FY 2000 ESTIMATED COMPLETION DATE: FY 2004

Summary: The energy sector is critical to the Indonesian economy, generating nearly 30% of total Government of Indonesia revenues and serving as a major source of foreign exchange. However, massive national energy subsidies ($4.5 billion annually, or half of all energy revenues) bleed the national budget and reduce funding for critical education, health and other social programs. Poorly conceived energy policies have resulted in inefficient production and distribution by state-owned monopolies and wasteful energy consumption. Reform efforts have accelerated since 1999, however, and the Government of Indonesia energy sector reform agenda has focused on improving efficiency and attracting private sector investment. The few vested interests benefiting from the current structure and the lack of transparency remain as obstacles to reform.

This strategic objective will strengthen energy sector governance to help create a more efficient and transparent energy sector. By minimizing the role of government as a regulator, reducing subsidies, and promoting private sector involvement, a reformed energy sector can contribute billions of dollars in tax revenue. A more efficient energy sector will also have positive environmental impact, rationalize pricing, increase access to energy services, and help sustain Indonesia's natural resource base. USAID has been the primary bilateral donor working on energy sector reform, which helps leverage larger multilateral loans.

Key Results: At the strategic objective level, impact is demonstrated by increases in energy sector contributions to Government of Indonesia revenues and increases in emission units avoided (greenhouse gases, lead and other local pollutants). Achievement of this objective also relies on three key intermediate results: 1) energy sector reform implemented; 2) broader and more knowledgeable participation in energy sector reform; 3) environmentally friendly investments in the energy sector increased.

Performance and Prospects: USAID intends to obligate a total of $4 million in DA in FY 2001 to strengthen energy sector governance and help create a more efficient and transparent energy sector. USAID advisors play a catalytic role in helping the Government of Indonesia develop and implement key policy, legal and regulatory reforms. In 2000, the Government of Indonesia reduced energy subsidies by increasing electricity prices by 20% and fuel prices by 12%. Wary of public reaction to the price hikes because similar increases in 1998 led to street demonstrations, the Government of Indonesia, with USAID assistance, ensured that national and local parliaments, civil society organizations, media, and universities were involved in the decision. As a result, there was minimal public outcry. USAID also supported this process by providing policy analysis for energy pricing and subsidy removal. Additional increases are necessary and will require greater public understanding of the impact on the economy and on vulnerable groups. USAID will continue to provide technical analysis on the macroeconomic and microeconomic impact on industries and households, including a study on the impact of pricing policy on women and vulnerable populations.

USAID is helping restructure the electricity sector to open it to private competition, increase efficiency, and reduce the demand for scarce public funds in the sector. USAID advisors work directly with Government of Indonesia officials responsible for implementing power sector reform, revising draft electricity legislation and redesigning regulatory structures. USAID has provided much-needed assistance to the state electricity monopoly in improving power plant efficiency. The program has been replicated quickly within the monopoly as it prepares for sector restructuring.

In FY 2001, USAID plans to provide $2.85 million in DA to incrementally fund contractors under the Global Bureau Energy indefinite quantity contracts for energy analysis and policy assistance, and for assistance in restructuring the electricity, and oil and gas sectors.

USAID helped draft new oil and gas policy legislation submitted to Parliament in October 2000. The legislation will increase competition and efficiency by reducing the role of the state-owned oil company in exploration and production. A more efficient oil and gas sector will lower prices, increase product quality for consumers, increase government revenues, and improve air quality. USAID will continue to work on developing implementing regulations for the oil and gas legislation.

USAID, in partnership with an Indonesian NGO, has been instrumental in gaining the commitment of the state-owned oil company to phase out leaded gasoline in Jakarta by July 2001. USAID is assisting the Ministry of Energy's Oil and Gas Directorate to develop and implement a long-range fuel standards plan that will provide the foundation for refinery upgrade decisions and the production of cleaner fuels.

In FY 2001, USAID plans to provide $850,000 DA to support NGOs and universities in developing programs for raising awareness and supporting involvement of local government and the public of energy sector issues, including removal of energy subsidies and phase out of leaded gasoline.

New decentralization laws have devolved the licensing of electricity businesses and management of non-oil and gas resources to local governments. USAID has helped establish a university network that can serve as a resource for local governments to address revenue sharing and regional pricing issues. The program will provide education on national policy issues and a forum for local governments to analyze and understand their own energy issues, provide input into national policy and develop their own local policy.

In FY 2001, USAID plans to provide $300,000 in DA to support U.S. Department of Energy/Albany Research Center to partly fund the expansion of the performance and efficiency improvement program and possibly to support Indonesian and international NGOs in developing renewable energy and energy efficiency investment activities.
Possible Adjustments to Plans: An increase or decrease in political will for energy sector reform may warrant adjustments to this objective. The appointment in 2000 of a private sector-oriented reformist as the new head of the State oil and gas company bodes well for reform agenda progress.

Other Donor Programs: USAID works closely with the Asian Development Bank (ADB) and the World Bank on energy-sector reform. USAID assistance is leveraging a $20 million ADB power sector-restructuring loan, with USAID advisors playing project management and planning roles. The ADB and USAID worked together on drafting a new oil and gas law in 2000. Complementing USAID efforts, the World Bank has conducted comprehensive studies of the oil and gas sector, pricing policy, and provided assistance to the State electric company on financial and corporate restructuring. Along with USAID, Canada and the ADB are helping Indonesia develop an action plan for leaded gas phase-out and reducing overall transportation emissions.

Principal Contractors, Grantees, or Agencies: The Energy Policy Analysis Office and Oil and Gas Policy programs are implemented by Advanced Engineering Associates International. The Institutional Strengthening for Electricity Sector Reform program is implemented by the Institute of International Education. The Power Plant Improvement program is implemented by Albany Research Labs, U.S. Department of Energy.

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