Celebrating the 76th Anniversary of Mining and Energy Day, Minister Says Sector Contribution is Higher than Last Year

MINISTRY OF ENERGY AND MINERAL RESOURCES

REPUBLIC OF INDONESIA

PRESS RELEASE

NUMBER: 347.Pers/04/SJI/2021

Date: 28 September 2021

Celebrating the 76th Anniversary of Mining and Energy Day, Minister Says Sector Contribution is Higher than Last Year

Until July this year, the EMR sector has contributed Rp141 trillion to state revenue, which is 103% higher than the contribution in the same period last year, Minister of Energy and Mineral Resources (EMR), Arifin Tasrif, has said at a virtual ceremony commemorating the 76th Anniversary of Mining and Energy Day. Meanwhile, investment in the EMR sector has reached over USD12 billion, Arifin continued.

The 76th Anniversary of Mining and Energy Day was celebrated on Tuesday (28/9), under the theme of "Energi Tumbuh, Energi Tangguh" (Harnessing Energy, Limitless Energy). In line with the theme, the contribution and performance of the EMR sector has continued to grow significantly amid the Covid-19 pandemic, which is starting to be under control. The sector performance has improved strongly due to a number of policies and strategies.

In the oil and gas subsector, Arifin continued, the government had provided various types of incentives, besides making the schemes of production sharing contracts more flexible in order to attract investment. Additionally, the One-Price Fuel Program, which directly affects the public, is in progress. The government has targeted to add another 580 distribution points until 2024.

"In the oil and gas subsector, production sharing contracts have been made more flexible, because we offer gross-split and cost recovery schemes. To attract investment in the upstream business, we've offered various incentives, such as those for the Mahakam Block. In August 2021, the Rokan Block, one of the largest oil and gas blocks in Indonesia, was officially managed by the state through Pertamina," said Arifin.

The Ministry of EMR has also introduced a policy to ensure the use of coal for domestic energy security, especially for electricity generation. "The policy on mineral use is directed towards an increase in added value, especially of nickel, because it is one of the supporting materials for electric vehicle battery," continued Arifin.

In the electricity subsector, equal access to electricity remains the principal focus of Ministry of EMR. "Currently, the electrification ratio is 99.4%, and next year, we've set a target to get 100% of households have electricity," Arifin added.

On the same occasion, Arifin restated that the Ministry of EMR had formulated a National Grand Energy Strategy (GSEN) which was expected to offer solutions to the challenges in national energy security and resilience.

"The GSEN is also expected to answer the challenges we're facing such as limitation on NRE development and demands that more massive and efficient infrastructure should be developed," continued Arifin.

The Grand Energy Strategy has mapped out the increase of 38 GW in new, renewable energy power plant capacity until 2035 through the acceleration of primary energy substitution, conversion of primary fossil energy, addition in new, renewable energy capacity, and the use of new, renewable energy for non-electricity/non-fuel purposes.

"To achieve the target, the government has prioritized the development of solar energy because the investment costs are declining and the installation time is shorter," Arifin said.

These programs support the realization of the energy transformation target towards the Net Zero Emission (NZE), a common commitment to be met by 2060 or sooner with international assistance.

"Technology selection is the main consideration to ensure availability, accessibility, affordability, sustainability, and competitiveness in order to realize energy independence, energy security, sustainable development as well as climate resilience and low carbon," Arifin concluded. (IY)

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