Approved by the House, Most of EMR Budget 2020 is for People

MINISTRY OF ENERGY AND MINERAL RESOURCES

REPUBLIC OF INDONESIA

PRESS RELEASE

NUMBER: 679.Pers/04/SJI/2019

Date: 27 November 2019

Approved by the House, Most of EMR Budget 2020 is for People

The House of Representative approves the proposed State Budget (APBN) of Ministry of EMR of Fiscal Year 2020 at Rp9.67 trillion. About 58.4% of the total will be used to finance programs that directly benefit the community.

"We (the government) have prioritized four fields (O&G, geology; new, renewable energy and energy conservation, and vocational education) with a budget of Rp5,955.8 billion," said Minister of EMR Arifin Tasrif at the Work Meeting with Commission VII of the House in Jakarta, Wednesday (27/11).

For the oil and gas subsector, the government will continue construction of 266,070 gas networks (jargas) for households--allocating a budget of Rp3,037.5 billion, distribution of 5,000 converter kits of oil-fuels to 3-kg gas cylinder for fishermen and farmers Rp432.5 billion, 7 recommendations of gas infrastructure service Rp55.6 billion, and conversion of kerosene to 3-kg LPG cylinder for 522,616 packages Rp266.5 billion.

In the NREEC subsector, the Ministry will revitalize 24 NRE power plant units worth of Rp50 billion, 24 units of communal biogas digester Rp28.6 billion, development of 45,000 units of energy efficiency equipment (PJU-TS) Rp800 billion, 23 solar power plants for volcano observation posts Rp30 billion, 800 rooftop solar power plants Rp175 billion, 50 solar power plants for Indonesian Armed Forces posts Rp90 billion, and 13 recommendations of NREEC infrastructure service Rp59.5 billion.

In the geology subsector in 2020, the government focuses on developing two geoparks (Rp7.5 billion), development of 10 volcano observation posts (Rp28.6 billion), construction of 20 shallow groundwater wells for emergency response (Rp2.4 billion), 1,000 bore well spots at areas with water shortage (Rp554.1 billion) and development of 3 geological disaster mitigation system at 8 locations (Rp35 billion).

Finally in the vocational education, there is a plan to develop Energy and Mining Polytechnic (Politeknik Energi dan Pertambangan, PEM) Bali (Rp94.3 billion) and PEM Prabumulih (Rp114.8 billion), expansion of PEM Akamigas Cepu (Rp97.9 billion) and PEM Bandung (Rp33.8 billion), community oil and gas education and training centers (Rp2.9 billion); geology, mineral, and coal training centers (Rp2 billion), NREEC (Rp1.3 billion), and underground mines (Rp2.1 billion).

2019 Realization

As of 26 November, the Ministry of EMR realized 63.82% of the 2019 APBN with a total budget Rp5.6 trillion.

Arifin explains that the budget is used for goods spending Rp3.15 trillion, capital spending Rp1.14 trillion, and employee compensation Rp870 billion.

"Strategic targets include, among others, oil lifting 744 MBOPD, gas lifting 1,050 MBOPD, electrification ratio 98.86%, One-Price Fuel realized at 170 points which we'll continue until 2024," Arifin concluded. (IY)

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