Energy Sovereignty to be Realized Immediately: Minister Tahar

TEMPO.CO, Jakarta - The Indonesian Minister of Energy and Mineral Resources Archandra Tahar said he has been ordered by President Joko Widodo (Jokowi) to create energy sovereignty in a relatively short time.

"Energy sovereignty is related to how to meet the energy needs at a time of an energy crisis," the minister said, during an introductory meeting with journalist on Friday (July 29, 2016).

He noted that that the government will increase its supplies in the coming years in order to achieve energy sovereignty based on the Nawacita or nine national development priority program.

The minister added that he had competent officials who will assist him to achieve Indonesian energy sovereignty.

The policy he will act on will be based on three principles:

First, all natural resources must be exploited for the greatest interest and prosperity of the people.

Second, energy sovereignty will be created through increasing supplies.

Third, assuring legal certainties for investors so that the peoples prosperity could be created.

"The policy in the energy sector has three pillars," he said.

Also, the minister confirmed that he will proceed with the 35 thousand megawatt electricity project.

"We will seek solutions to constraints hampering the 35 thousand megawatt power development," Chandra, as Archandra Tahar is popularly called, added.

Regarding the Masela Block, Chandra said although he had the offshore oil background, he would follow the presidents policy plan to build an oil refinery plant onshore.

Next week, the newly installed minister said he would start holding meetings with stakeholders in the energy sector.

"I will ask them one by one about what assistance they need. If the energy and mineral resources ministry is not able to overcome the problems, I will discuss it with the president to seek solution so that the program will run well," he said.

During the transfer of the energy and mineral resources ministerial post from Sudirman Said on Friday, Candra said the transformation of the energy and mineral resources sector will be based on three main pillars.

First, an efficient, transparent and measured business process.

Second, competent and responsible human resources supported with knowledge, skill and experience.

Third, utilization of appropriate and correctly targeted technology, so that human resources and business processes could be effective and efficient.

Furthermore, he said Law No. 22/2001 on Oil and Gas needs to be revised because the challenges today are different from in the past.

"Regulations which are not based on the united strategy to build energy sovereignty should be abolished," he said.

The oil and gas laws sought to overcome challenges during the huge oil field era, creating simple geological conditions and supported with adequate infrastructure, should now become things of the past, he said.

"Now is the era of marginal fields, offshore, deep water, tight and shale oil/gas and enhanced oil recovery (EOR) in isolated locations which lack infrastructure," he said.

ANTARA