Fajarasia.co – It is believed that the energy transition that is being intensively carried out in Indonesia will not shift the role of fossil energy, both oil and gas, even in the next decades the role of oil and gas is still very vital to meet Indonesia’s energy needs, including driving the national economy.
Mulyanto said that oil and gas production must continue to be encouraged even though there is an assumption that oil and gas has run out, but in fact oil and gas has a direct impact on the Indonesian economy. In addition, in the midst of current conditions when oil prices are high, the state also enjoys these benefits.
“Recently, with oil prices rising, downstream is certainly depressed, upstream has added to a conducive atmosphere. Prices are rising, investment is expected to rise, prices are rising. This allegation is confirmed by PT Pertamina upstream getting better. Mrs. Sri Mulyani (Minister of Finance) admits oil and gas will provide additional quite large, both non-tax revenues and taxes to state income,” he explained in a release received by the Editor, Thursday (16/6/2022).
The DPR, according to Mulyanto, even encouraged the government to be more serious in pursuing oil and gas lifting targets of one million barrels per day (bpd) and 12 thousand million cubic feet per day (MMscfd). One of them is by making the target stated in clear regulations.
“The one million bpd target is made into a presidential regulation (perpres) or presidential instruction (inpres). If there is, it will be a strong financial support,” he said.
Meanwhile, Satya Yudha said the energy transition needs to be done gradually. This automatically makes upstream oil and gas still very necessary. According to him, the right way to develop fossil energy or oil and gas is to pay attention to the balance of upstream oil and gas development with reducing emissions through the use of energy.
“Friends in the oil and gas industry don’t have to worry about the presence of EBT, we still use fossils, but with clean technology,” he said.
He emphasized that DEN continues to encourage the improvement of the oil and gas investment climate so that investors feel at home investing in Indonesia by monetizing existing fields. DEN also warned that oil and gas production should not continue to decline. Because, based on the scenario prepared by DEN, gas becomes the backbone of Indonesia’s energy transition strategy.
“Oil and gas is still the mainstay until NRE is ready to take so that future oil and gas trends can lead to cleaner energy,” said Satya.
Taslim Yunus revealed that the outlook for Indonesia’s energy needs shows that there is still room for the oil and gas industry to continue to grow. Moreover, the government has provided several incentives to several cooperation contract contractors (KKKS).
“Our target in 2030 is to produce 1 million BOPD of oil and 12 Bscfd of gas,” he said.
Meanwhile, Komaidi Notonegoro stated that all parties have agreed that the upstream oil and gas industry is still very important and now it is just a matter of how to manage it wisely.
Indonesia must learn from several countries such as Brazil, Australia and Canada which provide incentives to operators so that oil and gas production in these three countries also increases. This in turn also increases state revenues from the sector.
A study conducted by the Reforminer Institute shows that of the 185 industrial sectors in Indonesia, around 145 sectors or 70-80 percent have links to the upstream oil and gas sector.
“The multiplier effect index reaches 39. So, every oil and gas investment has an impact of 3.9 times on our economy,” he said.
According to Komaidi, the upstream oil and gas sector still plays an important role in the national economy despite the energy transition through the development of new and renewable energy. Moreover, many derivative products are produced from oil and gas.
“If you want to move into the energy transition, of course, there are many details that need to be looked at wisely,” he said.****
