Household energy consumption in west Sumatra. Implications for policy makers

The results of a field survey on domestic energy consumption in West Sumatra are discussed within the context of Indonesian energy policy, particularly with regard to the problem of domestic kerosene subsidisation. Many energy planners believe that the heavy subsidies on kerosene are necessary to prevent deforestation and protect the poor. Inequalities in fuel consumption for different sectors of the population may vary for different uses. In formulating policies aimed at reducing inequalities it is helpful to consider the end uses of the fuels separately. Energy use in cooking and lighting and the villagers' attitudes towards different fuels are investigated to see what effect a removal of the kerosene subsidies would have. In the case of lighting, a removal or reduction in the subsidies would primarily affect the lowest income sector of the population, unless a system of loans or subsidies is established for the initial installation charges of electricity. For cooking the higher income group would primarily be affected, and reducing the subsidies would not cause considerable hardship to the villagers or adverse environmental effects as there are considerable underutilized forest resources in the region. However, unless suitable alternatives to kerosene are made available at reasonable prices, the villagers now using kerosene would consider it a retrogressive step in their standard of living to return to the use of smoky and inconvenient open wood fires.