Rp5.89 Trillion Allocated to Energy Ministry in 2022

MINISTRY OF ENERGY AND MINERAL RESOURCES

REPUBLIC OF INDONESIA

PRESS RELEASE

NUMBER: 481.Pers/04/SJI/2021

Date: 27 December 2021

Rp5.89 Trillion Allocated to Energy Ministry in 2022

Minister of Energy and Mineral Resources (EMR), Arifin Tasrif, on Monday (27/12), handed out Budget Implementation List (DIPA) of Fiscal Year 2022, which amounts to Rp5.89 trillion. The budget is distributed to 12 organizational units and 32 work units (Satker) within the Ministry of EMR, and will be used to finance national priority activities that strengthen energy access for the public.

"(For) Fiscal Year 2022, the Ministry of EMR is allocated a budget of Rp5.89 trillion. Most of the funds will be used for national priority activities and activities that strengthen energy access for the public," explained Arifin.

National priority activities and activities that strengthen energy access for the public include the Cirebon-Semarang Natural Gas Transmission Network, Natural Gas Distribution Network for Households, Oil-to-Gas Converter Kits for Fishermen and Farmers, Solar-Powered Public Road Lighting; Revitalization of New, Renewable Energy Power Plants; Micro Hydropower Plants, and New Electrical Installations for the Underprivileged.

Minister Arifin expects the 2022 budget will be managed better than that of 2021, for example, the budget is more evenly distributed throughout the year, and the realization does not accumulate at the end of the year.

"Reflecting on the evaluation of the 2021 Budget Implementation, as of December 19, 2021, a total of Rp534 billion still has to be realized and 8 work packages have physical progress that ranges between 0%-25%, while the time to spend the budget is only a few days away. I hope these issues will not happen again next year," Arifin commented.

According to the directives of President Joko Widodo for the Implementation of the 2022 State Budget (APBN), the APBN will focus on six areas, among others, to continue protection against COVID-19 while prioritizing the health sector, and maintain a sustainable social protection program for the poor and vulnerable.

Moreover, to accelerate the implementation of the 2022 budget within the Ministry of EMR, Minister Arifin instructed all units to start drawing up a risk register for every main activity related to budget absorption, by identifying all risks and control steps.

"Please immediately complete the tender for all work packages that have been and will be announced in the SIRUP so that the work can be executed immediately in early January 2022, and all units immediately draw up a detailed implementation plan according to the set targets," said Arifin.

Minister Arifin said President Joko Widodo had instructed that flexibility be applied in using the budget to address ongoing problems. However, such flexibility requires prudence, transparency, and accountability as part of budget execution.

After handing out the DIPA documents to Senior Executive Officers, the Head of BPH Migas, and the Head of the Aceh Oil and Gas Management Agency, the Minister of EMR witnessed the signing of Integrity Pact and Performance Agreement of Fiscal Year 2022 by twelve program holders.

The signing is a form of commitment to implement, manage, and be held accountable for the APBN in a manner that is transparent, accountable, timely and free from Corruption, Collusion, and Nepotism (KKN), and a commitment to meet the performance target.

"I hope that what you have said and signed is not a mere formality but instead truly shows your commitment to implementing, managing, and being held accountable for the APBN in a manner that is transparent, accountable, timely, and free from KKN, and a commitment to meet the performance target," Arifin said. (IY)

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

Agung Pribadi (08112213555)

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