TEMPO.CO, Bali - Coordinating Minister of Maritime Affairs and Investments Luhut Pandjaitan at the 3rd International Convention on Indonesian Upstream Oil and Gas 2022 held in Bali said Indonesia’s energy consumption remains high, especially for the use of crude oil. He said this has pushed the government to aim on producing one million barrels of oil by 2030.

“We have the aim of one million barrels by the upcoming year of 2030,” said the Minister on Wednesday, November 23.

If this goal is achieved, he said, Indonesia can reduce imports and encourage economic growth to above 5 percent. "The availability of natural gas will also be a catalyst for the energy transition process going forward," said Luhut.

The government, Luhut explained, has provided a series of fiscal incentives. Currently, the government has discussed many regulations for fiscal incentives apart from other policies that are still being discussed to facilitate the distribution of financial incentives to increase production.

The government's commitment, especially in the energy sector, Luhut said, requires upstream oil and gas business activities to make reasonable adjustments to their operations. For example by adapting to climate change through energy management and carbon capture and storage technology.

"In the upstream sector, we encourage that we can continue to support this through the current technology to reduce carbon emissions in operations," he said.

Echoing the minister, the Director General of Oil and Gas at the Ministry of Energy and Mineral Resources, Tutuka Ariadji, explained that Indonesia's demand for oil is still high and implied that crude or fuel imports had to be carried out.

MOH KHORY ALFARIZI

Click here to get the latest news updates from Tempo on Google News