Commemorating the 76th Anniversary of Mining and Energy Day, Energy Minister Presents Subroto Awards

MINISTRY OF ENERGY AND MINERAL RESOURCES

REPUBLIC OF INDONESIA

PRESS RELEASE

NUMBER: 348.Pers/04/SJI/2021

Date: 28 September 2021

Commemorating the 76th Anniversary of Mining and Energy Day, Energy Minister Presents Subroto Awards

Commemorating the 76th Anniversary of Mining and Energy Day, Minister of Energy and Mineral Resources (EMR), Arifin Tasrif, on Tuesday (28/9) presented the 2021 Subroto Awards to 104 stakeholders to recognize their achievement in the energy and mineral resources sector within the last year. Minister Arifin explained how the sector had contributed significantly to national development.

"Year by year, the EMR sector has been playing a key role in national economy and improving people's welfare," said Arifin in his welcome remarks prior to the award presentation.

The significant contribution, continued Arifin, was obvious from state revenue that, until July 2021, had reached Rp141 trillion or 103% compared to revenue in the same period last year. Meanwhile, investment in the EMR sector touched USD12.3 billion. "Amid a pandemic that has started to come under control, the performance of the EMR has improved and increased," explained Arifin.

The improvement was due to the adoption of a number of strategies in a bid to realize the transition to clean, environmentally friendly, and low carbon energy. "As conveyed by Mr. Subroto, almost all countries in the world have committed themselves to dealing with climate change through the Paris Agreement. In the net zero emission roadmap, we've set a target to deploy 100% new, renewable energy power plants sooner than 2060," Arifin emphasized.

To support the target realization, the government is finalizing a regulation on new, renewable energy prices that are more attractive for investors, implementing Ministerial Regulation on Rooftop Solar Power Systems, and carrying out the government geothermal drilling program funded by the State Budget (APBN) to reduce investment risks.

The government has also encourage the young generation in the effort to accelerate the use of new, renewable energy through programs such as Energy Patriots and Solar Power Initiative Movement (GERILYA). "We expect energy business players will be more active in supporting energy transition to net zero emission through various strategies. The energy transition must become our shared commitment," Arifin added.

In the oil and gas subsector, production sharing contracts have been made more flexible with the freedom to choose either gross split or cost recovery scheme. To attract upstream investment, the government has offered various incentives, such as those given to the Mahakam Block 3 months ago. "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.

Additionally, the government is in progress with programs that directly affect the public, for example the One-Price Fuel program. The government has targeted to add another 580 distribution points until 2024.

In the mineral and coal subsector, the government issued a policy to ensure the use of coal for domestic energy security, particularly by power plants. "The policy to use minerals is directed to increase the added value, especially of nickel which is one of the supporting materials for electric vehicle battery," Arifin continued.

In terms of the electrification ratio, this year sees 99.4% of ratio, while next year, the target is to get 100% households have electricity.

Construction of electricity and oil and gas infrastructure as well as mineral and coal processing and refining facilities has been sped up to attain energy security and sovereignty.

For the record, the Subroto Awards were first presented in 2017, and this year marks its fourth conferment. It is a result of the collaboration between the Ministry of EMR and the United Nations Development Programme (UNDP). It was named after Prof. Subroto, Minister of Mining and Energy in 1978-1988. For more information about the 11 categories presented, visit the list of the <2021 SUBROTO AWARDS>. (IY)

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Agung Pribadi (08112213555)

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