The upstream oil and gas industry will continue to support the availability of affordable energy supplies and create economic growth in Indonesia, Coordinating Minister for Economic Affairs, Airlangga Hartarto, has said.

Indonesia still relies on oil and gas as the primary sources of energy and raw materials, he noted adding, even gases with low emissions can replace coal.

“Preparations need to be made so Indonesia can continue to support economic growth with the available and affordable energy,” he stated during an oil and gas convention in Badung, Bali, on Tuesday.

The oil and gas industry has an important role in increasing and creating a multiplier effect for downstream industries, such as fertilizers and petrochemicals, he explained.

Last year, the government provided support by regulating gas prices in specific industries to make them competitive so that many downstream sectors could export their products, he said.

“We need to appreciate the policy and hope the upstream and downstream activities of oil and gas will develop, so they will not only contribute to state revenues but also have the effect of creating jobs and encouraging the macroeconomy,” he added.

“For this reason, increasing production by 1 million barrels of oil per day and also 12 billion standard cubic feet of gas in 2030 is a challenge that needs to be made into a roadmap,” Minister Hartarto said.

Meanwhile, deputy chairman of Commission VII of the House, Maman Abdurahman, said legislators support oil and gas exploration and exploitation activities through the Oil and Gas Bill.

The Oil and Gas Bill is targeted to be ratified into law at the latest by the end of 2022, he added.

“The Bill must be realized soon because this is big,” Abdurahman remarked.

According to him, oil and gas production has continued to decline every year in contrast with the increasing consumption rate in Indonesia.

He said he expected the ratification of the Oil and Gas Bill in 2022 to boost state revenues and meet domestic energy needs amid a global shift towards clean energy.

Source: Antara News