Visiting London, Minister Jonan Promoted Equitable Energy as the Key to EMR Sector Governance in Indonesia

MINISTRY OF ENERGY AND MINERAL RESOURCES THE REPUBLIC OF INDONESIA

PRESS RELEASE

NUMBER: 00010. Pers/04/SJI/2018

Date: January 30th, 2018

Visiting London, Minister Jonan Promoted Equitable Energy

as the Key to Govern Energy and Mineral Resources' Sector in Indonesia

Ministry of Energy and Mineral Resources (EMR) continues materializing the commitment to govern energy and mineral sectors all over the areas in Indonesia through Equitable Energy policy. Permit simplification and program of energy infrastructure equality focus in providing energy access to be more accessible in a competitive price.

Those were important points stated by Minister of EMR, Ignasius Jonan in a discussion on Indonesia Roundtable Series together with the leaders of Bloomberg in London. In oil and gas sector, Ministry of EMR has simplified permit process from 104 to 6 permits. Meanwhile, in mineral and coal sector has only 6 permits of the previous 117 permits, 5 permits on electricity sectors and 10 permits in New Renewable Energy (NRE) sector.

"Oil and gas permit in Ministry of EMR is only for 6 permits from the previous 104 permits. We will continue simplifying and facilitating the permit process," explained the Minister Jonan to Bloomberg CEO, Costantin Cotzias and staffs in Bloomberg Central Office, London on Tuesday (1/29) at local time. The meeting was also participated by Asosiasi Profesi Muda Indonesia (Indonesian Young Profession Association).

Electricity infrastructure development has been developed since the last two years. There have been 70 signing of NRE-based Power Purchase Agreement (PPA) in capacity of more than 1.2 GW. The development affects the electrification ratio in the end of 2017 for 95.4% or increased form the previous year in 2016 for 91.2%.

There are several strategic policies implemented by the Government to reform energy and mineral resources' sector in Indonesia, those policies are gross split scheme for upstream oil and gas as well as Single Fuel Price that is applying the same price of oil fuels in all over areas in Indonesia.

Related to those policies, the Minister Jonan held a deeper discussion with Ambassadors of the Republic of Indonesia in Europe such as Ambassador of RI to United Kingdom, Rizal Sukma, Ambassador of RI to Kingdom of the Netherland, I Gusti Wesaka Puja, Ambassador of RI to Belgium, Yuri O. Thamrin, Ambassador of RI to United Nations in Jenewa, Hasan Kleib, Deputy V Presidential Staff Office, Jaleswari Pramodhawardani, as well as other embassy officials.

Minister Jonan stated that the purpose of the Single Fuel Price policy is to apply the same fuels price in all Indonesia areas especially in Papua and West Papua Province, as the same price in Java Island. Jonan also said that there will be more 33 districts built as oil fuels distribution agents up to 2019.

"There have been 57 Single Fuels Price points in 2017, so those 57 areas are having the same fuels price as Java's. These 16 points are located in Papua and West Papua," explained the Minister Jonan during the Focus Group Discussion (FGD) together with the embassy officials.

The development of oil and gas sector in Papua was also materialized by the construction of City Gas System along 3,898 Household Connection (SR) in Sorong City. It was planned that there will be City Gas System in 2 locations for 11,500 SR.

Ministry of EMR is also having a great commitment in the development of electricity sector in East part of Indonesia. There will be electricity development program in Papua and West Papua for 514 MW up to 2019. Besides, rural electricity program will be continued to reach 186 thousand customers up to 2019.

The other breakthrough to increase electricity access in East part of Indonesia is on NRE sector. The program is by distributing Solar Self-Ballast Lamps (LTSHE) to 250 thousand households in 20 province. The LTSHE have brightened 79,564 houses in 5 provinces. The Government targeted to distribute LTSHE in 2018 for 175,782 units (doubled than the previous year).

In the end of the discussion, the Minister emphasized that the prioritized policies for Papua and West Papua is by materializing social justice for the whole people of Indonesia. "As being mandated by the President Joko Widodo, that Single Fuels Price is the manifestation of social justice and would be one of unifier for Indonesia," affirmed the Minister Jonan. (AK)

The Head of Communications, Public Information

Services, and Cooperation Bureau,

Agung Pribadi

For further information please call:

The Head of Communications, Public Information Services, and Cooperation Bureau

Agung Pribadi (08112213555)

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