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Kaleidoscope 2017: Real Actions of EMR Sector in Achieving an Energy Justice (Part 1/4)
JAKARTA
- The year 2017 is the year in which the Government strives for equity,
in line with the commitment of the Government of the Cabinet of Work in
the third year to put more emphasis on equitable distribution, after
two consecutive years taking focus on foundation development and
development acceleration. In terms of equity, the energy sector is one of the spearheads, given
that equity in the energy sector is a manifestation of social justice
for all Indonesians.
"We
must not allow our people in Papua, in border areas, and in remote and
foremost islands to suffer injustice by having to buy fuel (fuel oil) at
prices many times compared to Java and Sumatra We also should not allow
the people we in the archipelago do not get electricity at night, "said President
Joko Widodo in the 4th Plenary Session of DEN early 2017 ago.
Following
the mandate of the President, the Ministry of Energy and Mineral
Resources (ESDM) has made various efforts to realize the energy of
justice for all the people of Indonesia, including increasing the
national electrification ratio which currently has reached about 93% by
continuing to accelerate the electricity infrastructure 35,000 MW, subsidizing energy prices as low as possible without sacrificing
people's purchasing power, building gas network infrastructure for
households, as well as distributing fuel-to-LPG converter kits for
fishermen.
Especially
for the 3T area, the Government has launched the One Billion Price Fuel
Program so that people in all regions of Indonesia can enjoy fuel at
the same price, as well as build local community-based power generating
plants and distribute Solar Energy Saving Lights ( LTSHE) for areas not covered by PLN's electricity network.
The beginning of 2017 also became one of the most historic years in the management of the national oil and gas industry. The Ministry of Energy and Mineral Resources has issued a phenomenal
policy in the oil and gas sector by changing the production sharing
contract (PSC) cost recovery scheme which has been used for decades to
become PSC gross split through Minister of Energy and Mineral Resources
Regulation No. 8 of 2017.
In
2017 also for the first time, the Ministry of Energy and Mineral
Resources has only 15 licenses with details of 6 oil and gas permits, 6
minerba permits, and 3 EBTKE licenses. As for the electricity subsector, the ESDM Ministry only issued 3 certification and 2 recommendations. All these permissions are further simplified through the implementation of an online system.
The following are reviews of incidents in the energy sector that occurred in 2017 first quarter:
JANUARY
January 1, the introduction of electricity tariff adjustment for the 900 VA community of capable customers. This adjustment is made to enable the electricity subsidy to be well
targeted and can drive a reduction of approximately Rp 20 trillion in
electricity subsidies in the 2017 APBN. The budgets resulting from
subsidy savings will be diverted for more important development programs
including electricity, health and education infrastructure.
January
11, Government Regulation No. 1 of 2017 is issued in the framework of
implementing the increase of metal mineral added value through metal
mineral processing and purification activities as referred to in Law No.
4/2009 on Mineral and Coal Mining. The birth of this PP provides optimal benefits for the state and
provides legal certainty and business certainty for the holders of
Production Operation IUP, Production Operation IUPK, Contract of Work,
Coal Mining Concession Working Agreement.
January 13, Regulation of Minister of Energy and Mineral Resources
Number 08 Year 2017 concerning Production Sharing Contract Gross Split
is determined in the framework of the implementation of upstream oil and
gas business activities based on profit sharing contract oriented to
the improvement of efficiency and effectiveness without operating cost
recovery mechanism.
January
18, signed a Working Area Contract (WK) Offhore North West Java (ONWJ)
between SKK Migas with Pertamina Hulu Energi Cooperation Contract (KKKS)
Contractor. The contract valid until January 18, 2037 is using the first Gross
Split Production Sharing Contract (PSC) scheme applied in Indonesia.
In January also launched 3 hour investment services sector of EMR and
ESDM One Map Indonesia as the embodiment of data integration in the EMR
sector.
FEBRUARY
On
February 10, the Ministry of Energy and Mineral Resources (ESDM)
approves the submission of PT Freeport Indonesia (FI) and PT Amman
Mineral Nusa Tenggara (AMNT) mining concession rights changes to Special
Mining Operation License (IUPK). This demonstrates the Government's commitment to continue to create a
conducive investment climate and implement good governance of the
mineral and coal mining sector, thus providing greater benefits to the
State.
MARCH
March
10, Villages on the border of Papua New Guinea have been able to enjoy
electricity with the launch of eight packages of Central Solar Powered
Power (PLTST) with a total installed capacity of 145 kilowatts (kW) and
65 units of Solar Street Light (PJU) Solar Power or PJU Cerdas in Keerom Regency, Papua Province.
March 18, President Joko Widodo (Jokowi) inaugurated 8 Power Plants
(PLTG) Mobile Power Plant (MPP) spread in 8 locations with a total
capacity of 500 Megawatts (MW) and 9 other electricity infrastructure in
West Kalimantan.
March
21, Minister of Energy and Mineral Resources attends the naming
ceremony of Floating Processing Unit (FPU) cricket ship, at Saipem
Karimun Yard, Tanjung Balai, Riau Islands, which marks the immediate
production of gas from Muara Bakau Block. The first gas is targeted mid-2017. The FPU is the largest floating
facility in Indonesia, with a width of 46 meters and a length of 192
meters.
March 29, the signing of 10 New Renewable Energy (EBT) power supply
agreements between PT PLN (Persero) and renewable energy development
company.
In
March, there was also an Electricity Supply Business Plan (RUPTL) for
the period 2017 - 2026 by issuing the Decree of the Minister of EMR No.
1415 K / 20 / MEM / 2017. In
this new RUPTL, energy mix for Renewable Energy (EBT) targets rose from
19.6% to 22.5% in 2025. RUPTL revisions also set new targets for
electricity infrastructure, optimizing the use of local energy for power
generation and selection more efficient technologies that can lower the cost of providing electricity.
Continued ... .. (KO)
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