Kartini L Makmur, Robert Sidauruk
Jero Wacik, Minister of Energy and Mineral Resource (ESDM), has suggested that the energy and mineral resource sectors should be managed by two different ministries.
Such separation, as the Minister explained, would lead to the more effective performance of each ministry and accelerate domestic energy utilization.
“In the future the mining and energy sectors must be managed by different Ministers,” the Minister said during a talk show titled ‘Indonesia Towards Green Energy’ in Jakarta, Wednesday.
In many countries, the separation of mining and mineral resource management is relatively common. Jero further explained that there is even a developed country that has different ministeries for oil and gas, electricity, mining, and the renewable energy sectors.
“Meanwhile here, all of those sectors are supervised by a single ministry,” Jero added.
In response to the Minister’s recommendation, Harsanto Nursadi, state administrative law expert at Universitas Indonesia, commented that such a separation is permitted under current laws and regulations because the mining and energy sectors are regulated under different regimes.
“The unification of the two sectors does make things easier for the Ministry of ESDM with respect to oversight, but on the other hand it has created ineffectiveness in energy and mining utilization,” Harsanto asserted.
Harsanto referred to the separation between the Ministry of Industry and the Ministry of Trade which were previously under the same ministry.
This separation provides for the Ministry of Industry to only focus on the management of goods or services, while the Ministry of Trade deals with the actual selling.
“If the separation is realized, the Ministry of Mining will only focus on the production sector, while the Ministry of Energy can focus on product management,” Harsanto added.
In contrast, Marwan Batubara, Director for Indonesian Resources Studies, said that the Minister’s suggestion is lacking as asubstantial solution.
He admitted that the Minister of ESDM currently has a fairly broad scope of authority, but at the same time he believes that this is the ideal arrangement for the mining and energy sector.
Marwan further suggested that the Minister of ESDM timprove coordination with related institutions rather than discussing the idea of a separation.
“If the objective is to utilize energy for people’s prosperity, coordination between Government institutions is the solution,” Marwan concluded.
(hot/kc)
Kartini L Makmur, Robert Sidauruk
Jero Wacik, Minister of Energy and Mineral Resource (ESDM), has suggested that the energy and mineral resource sectors should be managed by two different ministries.
Such separation, as the Minister explained, would lead to the more effective performance of each ministry and accelerate domestic energy utilization.
“In the future the mining and energy sectors must be managed by different Ministers,” the Minister said during a talk show titled ‘Indonesia Towards Green Energy’ in Jakarta, Wednesday.
In many countries, the separation of mining and mineral resource management is relatively common. Jero further explained that there is even a developed country that has different ministeries for oil and gas, electricity, mining, and the renewable energy sectors.
“Meanwhile here, all of those sectors are supervised by a single ministry,” Jero added.
In response to the Minister’s recommendation, Harsanto Nursadi, state administrative law expert at Universitas Indonesia, commented that such a separation is permitted under current laws and regulations because the mining and energy sectors are regulated under different regimes.
“The unification of the two sectors does make things easier for the Ministry of ESDM with respect to oversight, but on the other hand it has created ineffectiveness in energy and mining utilization,” Harsanto asserted.
Harsanto referred to the separation between the Ministry of Industry and the Ministry of Trade which were previously under the same ministry.
This separation provides for the Ministry of Industry to only focus on the management of goods or services, while the Ministry of Trade deals with the actual selling.
“If the separation is realized, the Ministry of Mining will only focus on the production sector, while the Ministry of Energy can focus on product management,” Harsanto added.
In contrast, Marwan Batubara, Director for Indonesian Resources Studies, said that the Minister’s suggestion is lacking as asubstantial solution.
He admitted that the Minister of ESDM currently has a fairly broad scope of authority, but at the same time he believes that this is the ideal arrangement for the mining and energy sector.
Marwan further suggested that the Minister of ESDM timprove coordination with related institutions rather than discussing the idea of a separation.
“If the objective is to utilize energy for people’s prosperity, coordination between Government institutions is the solution,” Marwan concluded.
(hot/kc)