ENERGY MINISTER DELIVERS PERFORMANCE REPORT OF 2020 AND WORK PROGRAM FOR 2021

MINISTRY OF ENERGY AND MINERAL RESOURCES

PRESS RELEASE

NUMBER: 003.Pers/04/SJI/2021

Date: 7 January 2021

ENERGY MINISTER DELIVERS PERFORMANCE REPORT OF 2020 AND WORK PROGRAM FOR 2021

Minister of Energy and Mineral Resources (EMR) Arifin Tasrif delivered annual press statement on performance report of 2020 and work program for 2021 of the energy and mineral resources sector at the office of the Ministry of EMR in Jakarta on Thursday (7/1).

Minister Arifin said that the Ministry had successfully realized Rp5.8 trillion or 93.5% of the 6.2 trillion budget allocation in 2020. This is the highest realization in the last eleven years. "The financial statements of Ministry of EMR have received an unqualified opinion (WTP) from the Indonesia Audit Body (BPK). The Ministry has received the same opinion for four consecutive years," Arifin added.

The Ministry of EMR has also received various awards in 2020, such as Best Budget Performance for state ministries/agencies with medium budget, Best Reporting of State Administrators' Asset (LHKPN), integrity titles for Integrity Zones towards Corruption-Free Area (WBK) and Clean and Serving Bureaucracy Area (WBBM), Best Performance in the National Strategies for Corruption Prevention (Stranas) from Indonesia Anti-graft Commission (KPK), Best State Asset Management (BMN Award), best geoportal, Best Personnel Management from Indonesia National Civil Service Agency (BKN), best green building and energy management for building at the ASEAN Energy Awards, Best Social Media Management, and Archive Management Award.

Amid difficult global conditions, the EMR sector still recorded significant investment at USD24.4 billion. The oil and gas subsector made the largest investment, contributing USD12.1 billion to state revenue, followed by electricity USD7 billion, mineral and coal USD3.9 billion, and New, Renewable Energy and Energy Conservation (NREEC) USD1.4 billion. Investment in the EMR sector is targeted at USD36.4 bilion for 2021.

Despite the Covid-19 pandemic, the Non-Tax State Revenue (PNBP) of the EMR sector in 2020 recorded (temporary) realization of 120% above the target. In the Revised State Budget (APBN-P) of 2020, the PNBP target of the EMR sector was set at Rp90.7 trillion, while realization was Rp108.7 trillion. The amount was contributed by Oil and Gas PNBP Rp 69.7 trillion (131%), Mineral and Coal Rp 34.6 trillion (110%), NREEC Rp 2 trillion (154%), and other revenues Rp 2.4 trillion (51%). Other revenues consisted of fee from downstream oil and gas business entities, Oil and Gas DMO, data sales, rental services, public service agency (BLU) revenues, etc.

On this occasion, Minister of EMR presented the performance and programs of each subsector, as follows:

Oil and Gas

Until the end of 2020, the One-Price Fuels program had been implemented at 253 locations, or increasing by 83 distribution agents. The Ministry of EMR will add 76 distribution agents in 2021 and has set a target of 500 distribution agents in total by 2024.

Meanwhile, as many as 135,286 House Connections (SR) were built in 23 regencies/cities in 2020 as part of city gas infrastructure, and another 120,776 SR will be built in 2021.

On the upstream side, the oil and gas lifting in 2020 was recorded at 1,682 mboepd, or 99.1% of the APBN-P 2020 target. The volume was made up of oil lifting 707 mbopd or 100.1% of target 705 mbopd and gas lifting 975 mboepd or 98% of target 992 mboepd. According to the APBN, the oil and gas lifting target for 2021 is 1,712 mboepd, which consists of oil lifting 705 mbopd and gas lifting 1,007 mboepd.

To improve national industry competitiveness and support competitive electricity tariffs, gas price was adjusted to USD6 per MMBTU at plant gate. With a total volume of 2,601 BBTUD, the quantity was allocated for Certain Industries 1,205 BBTUD and PLN's power plants 1,396 BBTUD.

Electricity

In 2020, the Ministry of EMR had realized an electrification ratio of 99.20% or growing by 14.85% in the last six year (84.35% in 2014). The target of Indonesia national electrification ratio has been set at 99.9% in 2021.

The ministry had also made Public Launch of Battery Electric Vehicle (KBLBB) on December 17, 2020. The launch is aimed at carrying out Presidential Regulation Number 55 of 2019 on Acceleration of the KBLBB Program for road transportation.

New, Renewable Energy and Energy Conservation

The realized capacity of new, renewable energy power plants until 2020 had reached 10,467 MW. Additional capacity had come from PLTA (hydropower plant) Poso 66 MW, PLTBm (biomass power plant) Merauke 3.5 MW, PLTM (mini hydropower plant) Sion 12.1 MW, and PLTS Atap (rooftop photovoltaic power station) 13.4 MW. The capacity of new, renewable energy power plants for 2021 has been targeted to increase to 12,009 MW.

On December 17, 2020, Project Kick-Off Ceremony of Floating PLTS (photovoltaic power station) Cirata was held. The station with a capacity of 145 MW is the largest floating PV power station in ASEAN and is a collaboration between Indonesia and the United Arab Emirates.

The mandatory biodiesel program has also been intensified. Since the implementation of B30 policy in January, biodiesel consumption in 2020 was recorded at 8.46 million Kilo Liters (KL), making a saving of Rp38.31 trillion (USD2.66 billion) in foreign exchange. For 2021, biodiesel consumption is targeted at 9.2 million KL.

In terms of CO2 reduction, the Ministry of EMR successfully reduced 64.4 million tonnes of CO2, or 111% of the 58.0 million tonne target for 2020. For 2021, the CO2 reduction target is set at 67 million tonnes.

Mineral and Coal

Law Number 3 of 2020 on Amendment to Law Number 4 of 2009 on Mineral and Coal Mining was introduced on June 10, 2020. The law is expected to answer the various challenges in the mineral and coal subsector and the demands of the times for justice and welfare of the people according to the mandate of Article 33 section 3 of the 1945 Constitution.

In 2020, the amount of coal Domestic Market Obligation (DMO) realized was 132 million tonnes out of 558 million tonnes production, while coal DMO for 2021 is targeted at 137.5 million tonnes out of production target 550 million tonnes.

Downstream coal processing has continued to be promoted, for example through the conversion of coal into Dimethyl Ether (DME) as an alternative to LPG.

To support downstream mineral processing, 19 smelters had been operated until 2020. They consist of 13 nickel smelters, 2 bauxite, 1 iron, 2 copper, and 1 manganese smelter. In 2021, another 4 smelters have been planned to enter operation, making a total of 23 smelters.

Geology

In 2020, Ministry of EMR drilled 560 deep water wells, so that a total of 3,408 deep water wells have been built in areas where water is scarce.

In terms of geological hazards in 2020, explosive eruptions occurred at nine volcanoes, pyroclastic flows at three volcanoes, and lava flows at six volcanoes. Meanwhile, there were 2,099 land movements, 73% occurred in Java Island and which had caused severe damage at 6 locations. (IY)

Performance Report of 2020 and Work Program for 2021 (download)

Head of Bureau of Communication, Public Information Services, and Cooperation

Agung Pribadi (081122135)

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