Family Hydro - An OTC Product?

TC did a great presentation yesterday. He talked about family hydro and all development possibilities.

So family hydro in Indonesia is defined as very small, less than micro, hydropower that have capacity less than 1 kW and able to serve max 3-4 families. There is now only one technological option: propeller turbine. In the future, there is another option: cross flow turbine.

Let us start with the propeller. There are two types with same operation principle. They need draft tube to make the runner spin. The first type TC calls it “land mine”. It has permanent magnet so that as soon as the runner spins it will produce electricity. TC calls it land mine because of that dangerous aspect. The turbine has to be submerged therefore there is a risk of electrocute. It produces max 100 watts. It needs average 10 liters of water with head at least 3 meters. The second type is also a propeller turbine with max capacity of 2 kW. It needs at least 30 liters per second flow and at least 7 meters head. It is safer than the “land mines”.

Why they call it family hydro? Because usually you need to go a little out of the village to get a decent hydro potential that has enough head and flow. That kind of potential might able to serve the whole village. Many conditions found that hydropower sites near settlements are having only limited head and small flow. At those sites, you can install something small that can serve a family or some more families. This is where the family hydro term came.

Was it user friendly? It turned out that even the “land mines” still need people that have ideas on how hydropower works. The bigger family propeller needs more civil construction than simple gutter. The “land mines” is still too difficult to install for normal user, although it is intended as a product that can be sold easily on a hardware store (Over the Counter (OTC) product). Those products are still too complex to install for normal people.

Those products (land mine and family propeller) have very crucial limitation. They do not operate in a wide operation range. They need specific head and flow. If you have something different, they will not work or work but with poor efficiency. Why they have poor performance? Because they have fixed guide vane that can only work with specific condition. Family cross flow turbine (up to 2 kW so far) will soon eliminate this limitation.

Family cross flow is designed to be simple yet robust turbine. Simple workshop should able to produce it easily with decent quality and performance. It has wider operation range because one can adjust the guide vane. The problem is: it needs people that understands hydropower to install. It needs more complex civil structure than propeller. It also does not operate very well in sites with head less than 7 meters. I never make any site statistics, but finding a site with 7 meters head close to a settlement should not that difficult.

The family cross flow set different standard. It shall be able to service more than one family. It is easily produced in regions (while the propeller is coming only from Bandung – copyright restriction). It should be able to boost the application of family hydropower. It does not need outside support to finance the construction. It has wider operation range so that it can operate all year round with slightest decrease of efficiency. It is safer than the propeller especially the land mine.

Family hydro is still far for being an OTC product. Propeller might have the biggest chance but it needs more improvement. Improvement needed are: safety issue, multi guide vane package propeller, clear understandable installation procedure. For now, family hydro products only provide pre-electrification measures. They need to prove its salability in real market.(picture: CIT, Bandung)

BTEL's Sins

BTEL or Bakrie Telecommunication (http://www.bakrietelecom.com/) is a new company that has three main products: esia, wifone and wimode. All are using CDMA system instead of GSM. When they started their business some years ago, they boast for cheap telecommunication. It was and it is still cheap with a big “BUT”.

I used wifone, a fixed wireless phone from BTEL(http://www.wifone.co.id/). I have used it for approximately 2 years. Before using Wifone, I used Telkom Flexi. Flexi has weak signal in my place but according to others who use it, the signal is much stronger now than 2 years ago. I stick to Wifone because the phone looks nice, internet access with the phone is fast (although, see below) and it is wireless (c’mon).

The internet does not work with Windows XP. I have to use my other computer that has W2K installed to access the internet. The old computer, a Vaio P3 900Mhz with only 128 MB memory, is just too slow now. Although the internet connection is fast but the computer is the bottleneck. I tried to reinstall wifone driver too many times without any single success in WinXP machine. Finally, I gave up. I filed a complaint to Wifone but there is no real solution for the problem except that I have to bring the phone to Kuningan where Wifore HQ situated. It’s just too much for me to come down there without any positive prospect. If customer service has known the issue long time, they should provide an update in their webpage. They do not do it.

Now there is this accessibility problem. I can hardly able to call outside number or call the wifone number most of the time in a day. The signal bars shows full signal, but still I cannot make outgoing call. Incoming call is also not possible. This is dangerous because that Wifone is the only way I can contact my son at home. Calling to other wifone is also not possible in that condition.

I think BTEL suffers typical short-term profit making syndrome. They can only sell sell and sell. They cannot give the promised services. I think they purposely kill my connection at most of the time so that they can give more bandwidth to the active lines. This is very bad because all customers have the same right. They do not want to increase the quantity of the infrastructure because it is cost. They just do not care for customers.

In many online media, there are many complaints about BTEL performance and also BTEL’s bad after sales service. For example this http://suarapembaca.detik.com/index.php/detik.read/tahun/2008/bulan/04/tgl/02/time/125320/idnews/917129/idkanal/283.
For those that are planning to get a new telephone connection, please reconsider when you find BTEL’s product interesting. Their service is just below standard. Success rate of call is very bad in one day. For your information, BTEL’s owner is also the one that owns Lapindo Brantas. As you might already know, Lapindo Brantas created the mud catastrophe in East Java. They did not do proper drilling techniques and created the problems and make thousands of people suffers. BTEL’s owner is just an example of greedy type of people. They only want profit without any will to repay the one who suffered because of them.

So, please think carefully before you buy CDMA phone. Choose wisely support good company.

more complaints (in bahasa)
http://www.mediakonsumen.com/Artikel1768.html

Caution – GREED

Greed has made the “free market” of America fell apart. Government of the US has to make a similar move of Indonesian in 1999 to rescue its economy. US government has to deny its own economic principles: against nationalization and regulation of market. US government is now nationalizing some private financial firms (so that no foreign capital eats it) and regulating the market. This has showed the failure of liberal economy theory. This has shown the danger of liberalization and total privatization without limits. Greed, once again greed, can make everything collapse.

Islam says stop when you have enough. As far as I know, last year the Pope also says that one of the dangerous things in the world today is super wealthy people that are greedy. I think all religions agree about this. Someone has to limit and control his/her greed. I say this is the bad sign of materialism. Greed comes from materialism root.

So what’s for Indonesia? Liberalization of electricity market was once a hot discussion when Law No.20 of 2002 exists. At that time, the main opposition was coming from PLN’s worker union. There was no further discussion about the good and the bad thing of full liberalization of electricity sector. The constitution court was finally annulled the law based on the argument that electricity is influencing to people’s livelihood therefore it should not be privatized. The law is in principle against the principles of Constitution 1945.

I am not against liberalization as long as there is a limit and it does not involve gambling. Liberalization can bring efficiency and finally bring the cost down. Lower cost means lower price for customers and it is certainly beneficial for them. That liberalized market has to have limits so that there is no “gambling” option for market player. I think the fell down of the US economy is because this “gambling” actions. I believe, derived market (options, futures etc.) is very much supporting “gambling”.

The annulment of Law 20 of 2002 was in time. At that time, the market infrastructure was not available, supporting regulations were not available (e.g. coal market regulation etc.) therefore, the continuation of the law might bring chaos. Constitution court has made a correct decision. However, monopoly should be stopped. PLN is now monopolizing the sector and the worst thing is that PLN does not have clear identity (either being fully private entity or public service entity). PLN being in the monopoly has create difficulties in developing electricity sub sector for example the implementation of small renewable energy generation decree (PSK Tersebar Decree of 2002).

The conclusions are:

• Man made things are not perfect (including the free market economic theory
• Government has to be strong and act as needed. Free certain part of the market and regulate necessarily
• The important conclusion is: do not become a greedy person. It is just bad for you and for other people.

Have a nice day. It is very hot now in Jakarta.

Poverty Conscious Leaders

Some days ago, there was this tragic accident in Tuban, East Java. Some 20 people are dead in the struggle to get IDR 40.000 from a wealthy local businessperson. Let us put the site condition at the day of the accident (too many people in such a small space and there was no proper security control or mass control) aside. The tragic accident happened because many people wanted to get IDR 40.000 (please note only IDR 40.000). IDR 40.000 means 6 liters of subsidized gasoline, two cans of subsidized 3 kg LPG, one cheese burger at MacD (hardly make you feel full), 10 times meal with Nasi Kucing standard (in Jogja), or 20 packs of instant noodle. The accident showed that people are at the lowest condition now. There are many poor people living under one US$ per day. With keep rising inflation rate, the life is becoming harder for them.

That is only in Tuban. There are more poor people in many unreported places in Indonesia, especially in rural areas. This condition is a difficult homework for any leaders in any areas in Indonesia. They are, especially the president, are responsible for this bad condition. The government supposes to ensure the life of the citizen is easy. Basic needs such as food, housing, and clothing should be easily got.

Indonesia is now experiencing rather “bad” transformation. Individualistic is becoming more and more popular. One can notice this if s/he pays attention in the urban areas (e.g. Jakarta). High-rise apartments are constructed everywhere. Living in an apartment nurtures individualistic lifestyle. In rural areas, many people are going to urban to work and this educates them to be individualistic because living in urban area is tough. The strong is the winner. This has made many villages lost their “good practices”. I cannot see anymore “village food stock” or we call it Lumbung Desa in the villages in Java. Lumbung Desa keeps crops of the villagers. The crops will be used together when there were hardships in the village (rainy season, failing harvest etc.). Agricultural livelihood cannot support villagers anymore. Traditional fishermen cannot beat the “climate change” that has made the waves bigger and weather unpredictable. Condition is rather grey for villagers and this has made people become poor. The chance to get free money (although very little) has made poor people excited and ignored possible dangers.

Government has to work with those facts. Government has to change those conditions. Leaders are the key. As Indonesians are mostly patriarchal, any examples of the leaders will be followed. Strong, pro-poor leaders are needed. Sometimes leaders are too much carried out with corporate demands instead of people demand. Local independency is important (e.g. energy and food) should be prioritized. Programs to increase the usage of local products, reduce unnecessary imports, reduce economic gaps between urban and rural have to be done. Not to forget battle against corruption is not to be lost.

In Islam, leader or Imam must have higher knowledge than anybody in the religious and also governmental aspects and in other aspects such as economy. Islam does not separate governing a community with religious spirit. Religious content of governing is important to ensure “pure” commitments exist and self-control works. Leaders should be the best of the best because they will answer to God later in the end of the day. Now the condition in Indonesia is not exactly like that. People that have money can come to power despite lack of necessary knowledge. Money driven leaders will not be pro-poor and finally the poor will stay poor (if not poorer) and the rich becomes richer (or less rich if they are not lucky).

Finally let us hope 2009 election (for all leaders including leaders in the parliament) is for pro-poor and high knowledge/skillful leaders. Let us hope the next president has “pure” commitment, pro-poor, and has high spiritual content in each of his decision. Amin.

World Economy Will Never Be Fair

There will always be injustice in the world economy now and in the future. There is no respect from people of wealthier countries. Those people that only think about money and more money will do anything to get more and more profit. When those people die, they will not bring their money with them in the grave. No money can help them in the grave and before God. Those kinds of people do not understand the “good” way to earn money.

I am becoming a bit mad, despite Ramadhan, because I just heard a sad story of a Balinese artist. She was forced to sell her special piece of artwork to a European. That European is then applying a patent for that piece of artwork in his home country (I do not know how he can get that patent for something that is clearly not local– patent office in his country must be very passive or ignorant). When that Balinese artist tried to sell the similar product to Europe, she suddenly has to deal with WTO because she was accused for stealing the design of her own original design. The system has beaten creativity. Economic reason (mainly profit) has killed someone’s creativity. What a fair world. Wait a fair economy. Theft is protected by law and sadly it happens in modern country (wealthier country). WTO cannot ensure fair trade. WTO only protects the rich ones because the poor is always guilty.

Globalization has many faces. Some are good and some are bad. It really depends on the man behind it. Economic oriented globalization created environmental damages, loss of jobs, product dependency, economic conspiracy, violation of human rights and injustice. Globalization cannot be stopped. Internet is the proof. Using the internet, people from around the world can connect. Internet is global.

One says: globalization is lucrative and also deadly competitive. Therefore, facing globalization the government has to be strong and smart. Protection is still needed for some important industry (e.g. agriculture). Indonesia is seen as a big market and also important source of “creative” products. Chinese products have flooded Indonesia and kill some established industries (e.g. textile). This is wrong. Government should do something about it. Creative products (indigenous creativity) of Indonesia is often stolen. Government should do something about this. Protecting the people is government’s duty.

People themselves also have to be loyal to local products. Middle class of Indonesia is the “destructive” class. They consume imported goods and use more than most of Indonesians. National economy is becoming imbalance because of that. There is no surplus for Indonesia because of that many imports. A national movement, with strong and real example from the top (president and all) to use local products might able to make change. Indonesia must learn from South Korea. Their pride to use their own products and their patriotism are some of many good examples. Different culture is not a barrier as long as there is real example from the leaders the people will follow.

Let’s use our national products and producers must also improve the quality of the products. Be prepare for globalization.

This is my 50th.

Energy - The importance of being independent

Georgia attacked South Ossetia few weeks ago and because of that, Russia has sent troops and tanks to push the Georgian army back to their barracks. The war ended in about one week but the economic and political effects remain. The economy of Georgia went down to the lowest point. Global economy is already hard, but people in Georgia have it harder.

Why actually Russia attacked Georgia? The official explanation was to protect Russians in South Ossetia, however the truth can be anything. Ex Soviet countries including Georgia are rich of fossil fuel reserves. After the fall of Soviet, the US are leading in the oil industry investment in those countries. The US secures fuel supply by exploiting new wells and also building gas/oil pipeline via friendly countries (that means not Russia, Iran or China). Russia off course does not like this. Russia needs to secure its dominancy in energy supply to Europe. Although Soviet is already fall, but Russia still has its sharp bear claws and the ex-Soviet countries are still respect those claws. Therefore, when Georgia tried to be naughty, Russia came with power.
Europe, knowing that they depend of Russian supply, did not do much after the military action. European governments left Georgian government alone to face the fierce claws of Russia. The US is also being silent and not making strong comments or reactions. Being dependent to foreign energy supply has made European and US leaders to act cowardly and sacrifices millions (circa 4 millions) people of Georgia. Dependency creates coward actions.

It is all about energy source. It is important to be independent from foreign energy sources. It is not right to import energy sources when in house you have many. I am very much hoping that people in the government act wisely and cleverly and think of national importance so that silly mistake (or intended mistake?) of Tangguh Gas Deal would not happen in the future.

Local investment on energy should be increased. I believe many Indonesians are working for foreign oil companies. I believe they can build strong Indonesian oil company (if Pertamina is so sick and cannot be healed). I admire Medco for being Indonesian company and be strong with it. It is now time to be independent, trust your own power and knowledge and be patriotic.

Is it a dream? In every prayer I ask Allah to give chance to this beloved country to be strong. I was born in Indonesia for a reason and so is everybody else. Let’s not be sissy. Let’s be confident. Start from yourselves be being energy efficient.

Nine Eleven

2001, I was in West Sumatera in a monitoring mission. Suddently Matthias, a Swiss guy, became hysterical. He mentioned something about US bombing. What I understood at that time was US was bombing somebody somewhere...I was wrong. Somebody has attacked the US in the US. Wow.... That actually should have been impossible.

US blamed Al-Qaeda and Al-Qaeda admitted that. But, many "smart people" in the US do not believe that Al-Qaeda did the attack. That group of people believes that there was an internal conspiracy (not Arab conspiracy or such other things) that did the attack and sacrifices many US citizen. Those people persistenly search for evidence and analyze the attack from many point of views.

There are many analysis after that attack. I accidentally got one of those. It is in the form of a video footage. The conclusion of this video is (at least from what I saw) that there was big conspiracy to steal the biggest gold reserve in the US and get the momentum to fight for oil and create war business (ooh suddenly I remember Lord of War starred by Nicholas Cage). The footage and also the analysis really showed many "coincidence" that if one puts it together then there is this "bad smell" in the air.

Finally, I am sorry for the American Citizen because victims of 9/11 were killed by greed. Hopefully this year's election could bring sifnificant change to American policy.

New Fuel Pricing in 2009

Just read in Kompas daily newspaper today. House of Representatives (DPR) still works on the draft of Regional Tax and Retribution Act (RTRA). One of many things covered in the draft act is regional fuel price (i.e. gasoline and diesel fuel). The current mechanism does not involve regional government in setting the price. Pertamina (state oil company) includes value added tax (10%) and regional retribution tax (5%) to the base price. Gasoline price of IDR 6.000 (subsidized) is already including 10% VAT and 5% retribution.

The draft stated that in the future (maybe in 2009), Pertamina does not have the right to add retribution tax component to the price. Pertamina only takes care of the VAT and therefore the retribution component (RT) is taken care by provincial government. The value range of retribution tax is 0% to 10%. In the future there will be different fuel price in each province (especially subsidized ones).

What’s the effect of that? I try to look at my magic crystal ball to see the future and I see:

• Fuel price is lower than today. Today gasoline is IDR 6000 (10% VAT, and 5% RT). In the future the price will be lower than IDR 6000 because most of regional government will try to make this strategy to boost investment. Lower energy price will attract investment
• Less corruption in Pertamina. Because Pertamina will not manage the RT component and redistribute it to respective regions
• More traffic congestions in areas where the fuel price is lower. This might happen in border area. For example if Jakarta sets higher RT component (say 6%) while West Java sets lower RT (say 4%) then most of Jakarta people will drive to gas station in West Java area (border between Jakarta and West Java) to buy cheaper gasoline/diesel fuel. This certainly will create traffic congestions in those area e.g. Bekasi, Depok, Bogor, Tangerang
• Maybe more corruption in the regions. Because local government will manage the RT directly, the flow of fund is shorter. Officials can play their games with gas station owners. For example there should be 100% RT fund goes to government but the deal between gas station owner and tax collector set that only 80% goes to public and 10% goes to tax collector and the rest stay in the pocket of gas station owner. Actually I still do not know the mechanism of retrieving RT funds from gasoline selling to public pocket therefore the scenario above is just an imagination
• Richer gas station owner. Provided that above point really happens
• More fuel consumption. Middle class in Indonesia (i.e. who have cars) is not a true middle class. Usually they do not have strong commitment on something patriotic. They want it safe for themselves. Nowadays middle class people consume more imported goods than the poor and middle classers still buy subsidized gasoline. Middle class in Indonesia is supported by false economy (credits cards). They want it cheap therefore they might go farther to get cheap fuel price. This will actually consume more fuel and thus fuel consumption will be higher
  There might be a little boost on investment, especially gas station investment in lower RT component areas
• Chaos in some areas because people are angry they cannot get fuel. Stock is out
• Small business of fuel reselling will be booming. Because people cannot get fuel at gas station they turn back to their original area. On the way, the fuel runs out. People have to buy fuel from street vendor….ha ha…with unknown impurities in it
• Workshops will be booming and is towing service. People buy fuel from street vendor and make the engine break down. The cars are then towed to the nearest workshop for repair
  

That’s all. The crystal ball is exhausted. Investment advice: automobile workshop or car towing business. Cheers.

Breakfast = Break Fast?

This September, Muslims around the world are in the fasting month Ramadhan. Ramadhan is a special month of the year for over one billion Muslims throughout the world. It is a time for inner reflection, devotion to God, and self-control (www.submission.org).

In Ramadhan Muslims do fasting. They do not eat, drink, and sexual intercourse with their husbands/wifes during daylight (from dawn till dusk). They are allowed to break their fast when the sun is already set. That is the true meaning of "breakfast" from Muslims.

If nowadays breakfast means having meal in the morning, then it means people only do fasting at night. Sorry to say, there is no challenge doing fasting at night. So, I propose to change the name of morning meal to "Sarapan" instead of "Breakfast" so that it does not confuse people.

Micro Hydro Standardization

ISO (International Organization for Standardization) told me that standardization process usually starts with a request from industry. The industry is the front-runner of technological research. They found ways to make science friendlier to our daily lives. Industry has the reasons to push newly found technology as standard because standard means safe and customer friendly. Standard is market oriented. If industry complies with a standard then it has the chance to penetrate market better. I believe this only works in a market that has “quality awareness”.

Standard can also act like “protection” for certain industry. When industry can push certain technology to be a standard then it is sure that the supporter of that particular technology is ready to produce. This means anybody that cannot achieve the particular standard (maybe due to capital reason) will not able to have little share of the market. Someone or a group will certainly monopolize the market. So there is also a bad side of standard.

Therefore, when there is a plan to standardize micro hydro in Indonesia, the first thing that came to my mind is avoid “monopoly”. This future standard should not protect certain established industries (or manufacturers) and close the chance of developing manufacturers.

How can the standard accommodate the developing workshops? Training and maybe, once again maybe, capital support from government might solve the problem. Certain standard can be achieved, especially concerning specific products, using certain set of machinery. Improving capacity of work force to enable them to operate the advance machinery and support the developing workshops with hardware capital might work. This strategy is a bit dangerous because it opens the chance for corruption (procurement of machinery) and cronyism (only your friend’s workshop got the training and the tools).

Any other strategies? Make double standard (i.e. grade 1, grade 2, and more). Grading the products according to the production process used gives wider spectrum of the standard. For example: turbine is produced in small workshop with limited tools. It is only painted with epoxy paint to protect from rust. The rotor disc is cut using manual cutter. This kind of turbine is considered Grade-2. Grade 2 turbine is cheaper and must at least have 45% turbine efficiency.

Grade 1 turbine is sand blasted and painted with epoxy paints to protect from rust. The rotor disc is cut using laser cutting or water cutting. It is produced in advance workshop (established workshops). Grade 1 turbine is more expensive and must at least have 70% turbine efficiency. That is the second strategy. I prefer the second because the planner can calculate better. S/He will have more options for the budget. This strategy opens more chance to new workshops to enter the business. I think this strategy is fairer. The market will decide. If the budget is limited then go for the second grade if not go to the first grade. I believe there are more strategies to prevent monopoly and open more chance for new comers to compete.

But standard, especially micro hydro quality standard, is not only about the manufacturing of turbines. It should cover all aspect of micro hydro development. India and Nepal and Sri Lanka have set their standards. Their standards cover all aspects, from planning to delivering products. These kinds of standards might also be applicable in Indonesia. Let us see the government’s idea on this…

Philip Essential or Osram Mini Twist?

I started filling in my little house back in late 2005. First thing that I bought was lamps. I like warm white color (2700 Kelvin) lamps. I chose Compact Fluorescent Lamps (CFL) from Osram brand. Osram in Indonesia imported CFL from China. Osram offers one year guarantee if anything happen to the lamp (not including breaking because you drop it). I bought 15 CFL at that time an only 2 of them broke down before 1 year. The rest still operates until now (mid 2008 that means they operate almost 3 years) although there is degradation in the brightness.

The yellowish color of the lamp has a warm effect to the room and create particular "warm" feeling to the body. Temperature seems to be higher than outside temperature despite the many openings the house. Because of that, I changed some of the lamps with daylight white color lamps. I bought Philips because normal simple store nearby do not sell Osram. I bought the small Genie type and it broke down after two days. Philips does not give guarantee as Osram does so I could not return the lamp to the store. I suspected the voltage fluctuation is the source of lamp failure. Genie cannot stand voltage fluctuation as Osram. I also tried the Essential type of Philips that has broader voltage range (170-240 V). This Essential type lasts longer that the Genie type.

So, finally I get bored with warm white color and I decided to change all the lamps with day light color (4000-6500 K). There are two choices: Philips Essential or Osram Mini Twist. Essential has traditional design of CFL while Mini Twist has a twist design. I observed that the twist design (from any CFL producers) gives better distribution of lights. Traditional design (straight U tubes) left some darker spots in the room. The Essential is proven to be able to stand the wide voltage fluctuation but is has lower luminous efficacy. Philips Essential has 58 lumen per watt while the Osram has 64 lumen per watt. This means the Osram is more energy efficient. The problem is that Mini Twist does not have a wide operation voltage (220-240 V). I am afraid this mini twist cannot stand the voltage fluctuation in my area.

So, right now I am still testing the Mini Twist. It is more energy efficient, has one year guarantee (replacement for lamps failure), it is brighter, light is better distributed but it has narrow band of operation voltage. Taking Osram gives me better option because if the mini twist fails, I still can replace the lamps with other type of Osram and anyway all CFL sold in Indonesia from big brands are coming from China. Basically I have no choice...

Consumer Credits - For Renewable?

Banking sector in Indonesia is not yet familiar with renewable financing, although recently some small renewable projects were also financed by banks (e.g. Mandir Syariah, Mandiri etc.). For banks, consumer loan or credit is the big business. One can find many advertisement about car loan, house loan, and credit cards offer. I believe most of the consumption in Indonesia, especially in urban areas (i.e. Jakarta) is financed by consumer credits via credit cards.

Credit card penetration is very high right now. People can easily have credit cards. As far as I remember, getting approval for a credit card is harder some years ago. Nowadays, photocopy of ID card and salary slip can give you access to credit card. This mode of marketing has made many people trapped in consumerism and debt.

To make people use their cards, credit card issuers create programs such as discount in special shopping places etc. They also create "zero interest" program for buying special items such as computers, handphone, watches, or other gadgets. This kind of program is a good deal for real shoppers and "life style" followers. This kind of program might also be used for renewable energy market penetration.

So, the target will be urban people. They need lifestyle and also need "pride" or "respect". Some people think that when you are able to buy expensive items, you will get respect from other people (although one gets it by credit...). Some renewable appliances for example solar water heater is still a "luxury" good. In the Indonesian tax regime, solar water heater is still classified as luxury good with higher tax rate. Only rich people buy solar water heater. I do not know their basic reason to buy it, but I believe trend and pride are two of the reasons.

Then, if it is expensive, why not bank credit pay it in front? The consumer then have to pay the installment to the bank? Why not make solar water heater as one of the "zero interest" goods in the marketing flyer of credit cards? I think this will work, especially when the cost of LPG and electricity is certainly rising. Why not making rich people use it more and let them have it easily via bank credits.

The application of this idea for renewables might still be limited now. I can only see solar water heater and solar home system for emergency lighting. Other form of renewable? I do not know. Maybe energy efficient home appliances can do...mmm that will be very cool if banks can give offer for energy efficient appliances. Let's hope that the banks hear this....