Energy Transition Must be Realized Immediately, Says Energy Council Chief

MINISTRY OF ENERGY AND MINERAL RESOURCES

REPUBLIC OF INDONESIA

PRESS RELEASE

NUMBER: 392.Pers/04/SJI/2020

Date: 8 December 2020

Energy Transition Must be Realized Immediately, Says Energy Council Chief

Energy transition must immediately be realized in order to reduce LPG, gasoline, and crude imports as well as strengthen domestic energy security, Secretary General of Indonesian National Energy Council (DEN) has said in the 4th Warm and Fun Stories (CHAT) program on Energy Transition aired by the DEN on their official Instagram account on Tuesday (8/12).

Djoko continued to explain the shift in energy management paradigm. "Indeed, the paradigm (of energy management) has been shifted. We used to rely on energy as the source of foreign exchange and state revenue. Now we use energy for economic growth and job creation," he said.

Djoko went on to say that years ago, Indonesia's oil production exceeded demand, with production reaching 1.5 million barrels per day (bpd) while demand at 800 bpd.

Consumption continues on the increase, on the contrary, fossil energy production has been declining. "Since 2016, the upstream oil and gas contribution (as foreign exchange generator) has been below 10%, at about 5%-6%," said Djoko.

To answer this challenge, the Indonesian government through its Ministry of Energy and Mineral Resources (EMR) has prepared a special regulation to speed up the use of New, Renewable Energy (NRE). "The Ministry of EMR has sent draft presidential regulation on NRE so that NRE is affordable for the public while still attractive for investors," said Djoko.

He admitted that NRE prices have been uncompetitive than fossil energy prices. However, during the pandemic, oil prices slumped while NRE prices have remained stable. Therefore, Djoko hopes the new regulation will facilitate investors to build NRE infrastructure, thus clearing the way for job creation.

Djoko has however stressed that the shift in the consumption patterns will not threathen the existence of fossil energy industry. "That's why we're converting coal (industry) into clean energy such as syngas and DME," he said.

Finally, Djoko hopes to get support from all parties, including the public, for speeding up the realization of energy transition in order to realize energy security. "Energy security is evident when we can use our domestic energy, both fossil and non-fossil," he concluded. (IY)

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

Agung Pribadi (08112213555)

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