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Indonesian Ministry of Energy and Mineral Resources – Media Center – News Archive
Minister Bahlil discloses arrangements that are central to the ESDM sector
Saturday September 28, 2024 – Read 334 times
MINISTRY OF ENERGY AND MINERAL RESOURCES
REPUBLIC OF INDONESIA
PRESS RELEASE
NUMBER: 542.Pers/04/SJI/2024
Date: September 28, 2024
Minister Bahlil discloses arrangements that are central to the ESDM sector
Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia revealed that the President of the Republic of Indonesia, Joko Widodo, gave him a mandate to improve the management of the ESDM sector. Even though he was only appointed last August, he said that could not be used as an excuse for not moving in a better direction.
“President Jokowi's requests for orders are not something I just learned about, at ESDM I have to step on the accelerator because I am continuing what was done by the previous leader, Mr. Arifin, that I have continued well, but if not then we will make improvements,” he said during a TV channel talk show in Jakarta, Friday (27/9 ).
The arrangements made, Bahlil continued, include provisions so that oil extraction can increase, given that the daily oil consumption is 1.5 to 1.6 million barrels of oil per day. Meanwhile, domestic oil production is only 600,000 barrels per day, leading to increased oil imports and a reduction in the country's foreign exchange.
To overcome the problem of oil extraction, he explained that efforts were made to reactivate unused wells to increase oil production and then intervene in existing wells by applying technologies with the hope of increasing oil production. production, as was done by Pertamina in the Rokan block, Riau, using EOR technology.
Then, accelerating licensing is also one of the priorities. Bahlil said that for oil and gas exploration permits, 300 permits are required. “Imagine if (taking care of) a permit in one day, a year before taking care of the permit. If a permit can be completed in three days, that means 3 years just to (handle) the permit. So imagine our inefficiency in the upstream oil and gas sector,” he said.
Bahlil said ESDM's licensing service had gone through single online submission (OSS), but it was not yet optimal as licensing simplification still needed to be carried out. This will therefore be put in order in stages to speed up the permitting process at the Ministry of Energy and Mineral Resources.
Another thing that will be sorted out, he continued, is how to encourage the use of new renewable energies (EBT) in the energy mix. Indonesia is still short of 8.1 GW, or 8,100 MW, or as a percentage, it is still about 8% short of the target. “Our (EBT mix) which is expected to be 23% next year, we are still missing around 8.1 GW, which is equivalent to around 8% of our deficit,” Bahlil pointed out. (AND)
Head of the Office of Communication, Public Information and Cooperation
Agus Cahyono Adi
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