The contribution of the energy and mineral resource sector to the state revenue has jumped 103 percent year on year as of July this year, Energy and Mineral Resources Minister Arifin Tasrif has informed.
“As of July this year, the contribution of energy and mineral sector to the state income has reached Rp141 trillion or increased by more than 103 percent compared to the same period of 2020. While investment in the sector has reached more than US$12 billion,” he said at a virtual ceremony held to commemorate the 76th Mining and Energy Day on Tuesday.
Indonesia’s energy and mineral sector has continued to record positive growth amid the COVID-19 pandemic, the minister noted.
In the oil and gas sub-sector, the government has provided several incentives to attract investment and has made the production sharing contract scheme more flexible, he said.
“We made the oil and gas production sharing contract more flexible with gross-split or cost recovery scheme. To attract investment in the upstream sector, we provide various incentives, including (investment) in Mahakam Block,” Tasrif said.
In August 2021, the largest oil and gas field, Rokan Block, was officially managed by state-run company PT Pertamina, he said. The ministry has issued a policy regarding the use of coal to maintain domestic energy supply, especially for power generation, the minister said.
The Energy and Mineral Resource Ministry is focusing policies toward ensuring equal access to electricity for all, he said.
“Currently, our electrification ratio has reached 99.4 percent. Next year, we have targeted to electrify all households 100 percent,” Tasrif said.
The ministry has formulated the Grand Design of National Energy Strategy (GSEN) to map out a plan to increase the capacity of renewable energy plants by 38 GW by 2035, he informed.
Several efforts have been made to achieve this end, including the acceleration of primary energy substitution, conversion of fossil energy, and to increase the capacity of renewable energy and the use of non-electric green energy, he pointed out.
“To reach the target, the government has prioritized the development of solar energy for its lower investment cost and shorter time for implementation,” he said.
The program will support the target of energy transformation toward net-zero emissions (NZE), which has become a common commitment to be reached by 2060 or earlier with international help, he added.
Source: Antara News