Politics
Revealed! It turns out that this is Jokowi's order for Bahlil
Jakarta, CNBC Indonesia – Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia revealed that he received an important mandate from President Joko Widodo to improve the management of Indonesia's energy sector.
Even though he was only appointed last August, Bahlil stressed that the brevity of his mandate cannot serve as an excuse for not immediately implementing the arrangements within the ESDM.
“President Jokowi's orders are not what I just learned about. At ESDM, I have to step on the accelerator because I am continuing what the previous leader, Mr. Arifin, did, which is already well, I will continue, but if this is not the case, we will make improvements,” he said, quoted Monday (09/30/2024).
Bahlil explained that there are at least several structuring axes, one of which is the increase in oil transport.
Currently, Indonesia's oil consumption reaches 1.5 to 1.6 million barrels per day, while national production is only 600,000 barrels. This situation leads to high oil imports and has an impact on the country's currencies.
To overcome this problem, Bahlil mentioned the measures taken, such as reactivation of unused wells and application of enhanced oil recovery (EOR) technology to existing wells, as done by Pertamina in Rokan block, Riau . This effort is expected to increase domestic oil production.
Apart from this, accelerating licensing in the oil and gas sector is also Bahlil's priority. He highlighted the slow permitting process, which requires up to 300 permits for oil and gas exploration.
“Imagine if (taking care of) one permit per day, a year before processing 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 sector and the gas sector,” he said.
Bahlil added that although ESDM's licensing service is based on Single Online Submission (OSS), this system still needs to be simplified to make it more efficient and faster. Improving the OSS will be part of the Ministry of Energy and Mineral Resources' efforts to speed up the licensing process.
He also stressed the importance of increasing the share of new renewable energies (EBT) in the national energy mix. He said Indonesia is still short of 8.1 GW, or about 8 percent of the 23 percent energy mix target for the coming year.
“Our (EBT mix) which is expected to be 23% next year, we are still short about 8.1 GW, which is about 8% of our deficit,” Bahlil said.
(pgr/pgr)
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With 2 months left as Minister of Energy and Mineral Resources, Bahlil wants to resolve this problem
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