Minister Advances Four Policies to Address Energy Crisis

Kartini Laras Makmur, Robert Sidauruk

Jero Wacik, the Minister of Energy and Mineral Resources (ESDM), has suggested four policies to address the energy crisis currently engulfing Indonesia. The Minister refers to these four policies as “Catur Dharma Energi”.

Each of the four policies is centered around measures to increase oil and gas production, reduce fuel consumption, increase the utilization of new and renewable energy, and strengthening programs for saving and conserving energy.

The policy for increasing oil and gas production, as explained by the Minister, will be realized by providing assistance to investors in securing relevant permits and also fiscal incentives. These efforts are being taken based on the reality that Indonesia no longer has any known substantial new oil resources.

In relation to the policy to reduce fuel consumption, the Minister said that several initiatives have been taken pursuant to this policy such as increasing the biodiesel indices mixtures for diesel fuel to 10%, and prohibiting the State Electric Company, PLN, from using fuel driven generators for newly established power plants.

The Minister added that “If these efforts can be earnestly performed to a maximum, the Government may also suppress fuel imports.”

In regard to the third policy, the Minister stated that the Government is currently focused on optimizing new and renewable energy generated from geothermal, hydro and solar sources.

The Minister believes that Indonesia can successfully explore these alternative energy sources as there are considerable potential natural resources throughout Indonesia that can be used for these purposes.

To encourage the saving and conservation of energy, the Minister believes that at best the Government can only encourage the public to change their attitudes and way of thinking about the utilization of energy such as turning off electronic devices when not in use.

“Such small efforts can save thousands of megawatts of electricity if performed on a massive scale,” added the Minister.

(hot/kc)

Kartini Laras Makmur, Robert Sidauruk

Jero Wacik, the Minister of Energy and Mineral Resources (ESDM), has suggested four policies to address the energy crisis currently engulfing Indonesia. The Minister refers to these four policies as “Catur Dharma Energi”.

Each of the four policies is centered around measures to increase oil and gas production, reduce fuel consumption, increase the utilization of new and renewable energy, and strengthening programs for saving and conserving energy.

The policy for increasing oil and gas production, as explained by the Minister, will be realized by providing assistance to investors in securing relevant permits and also fiscal incentives. These efforts are being taken based on the reality that Indonesia no longer has any known substantial new oil resources.

In relation to the policy to reduce fuel consumption, the Minister said that several initiatives have been taken pursuant to this policy such as increasing the biodiesel indices mixtures for diesel fuel to 10%, and prohibiting the State Electric Company, PLN, from using fuel driven generators for newly established power plants.

The Minister added that “If these efforts can be earnestly performed to a maximum, the Government may also suppress fuel imports.”

In regard to the third policy, the Minister stated that the Government is currently focused on optimizing new and renewable energy generated from geothermal, hydro and solar sources.

The Minister believes that Indonesia can successfully explore these alternative energy sources as there are considerable potential natural resources throughout Indonesia that can be used for these purposes.

To encourage the saving and conservation of energy, the Minister believes that at best the Government can only encourage the public to change their attitudes and way of thinking about the utilization of energy such as turning off electronic devices when not in use.

“Such small efforts can save thousands of megawatts of electricity if performed on a massive scale,” added the Minister.

(hot/kc)

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