ESDM warns of crisis.
ESDM warns of crisis. [Posted 9 Oct 2015, 297 views, 8 likes, 4 comments]
The ESDM recently put out a document (26 Sep 2015) as a warning note on the 70th anniversary of mining & energy in modern Indonesia. The document emphasizes the crisis in the oil / gas & electricity sectors. In response the ESDM is taking the first step to improve the ministries manpower capacity, through reform and training. The report does not adequately recognize the depth of the crisis in the mineral & coal exploration industry, and skips over the significant issues related to the process & smelting sector.
The report starts with a nice outline on Mr Arie Frederick Lasut (1918 – 1949), the father of modern Indonesian geology. The document draws further inspiration from Prof. Dr. Subroto as minister for mines and energy 1978 – 1998. Indonesia’s well developed mining industry is now in crisis for fear of not meeting the ongoing needs of the people and the nation.
- The oil and gas industry replacement ratio is only around 50%, with draw down of reserves at around 3% per year.
- The electrification of Indonesia is below similar countries, with only 7 of 23 systems considered normal.
- Renewable energy, conservation of energy and oil refining capacity are all lacking development.
- Minerals and coal are further encouraged to add value.
An underlying approach to resolving these challenges is to reform and improve the ministry and its staff. Such reform has commenced with changes to 503 staff at ESDM, along with further training and building professional values. The ESDM recognizes the importance of involving all stakeholders and is to be more consultative with industry. Other approaches are to review and change the pattern of subsidies, and to improve various regulations.
Various strategic goals have been set for the current 5 year program, include lifting oil & gas, setting targets for coal production, improving the electrification ratio and conversion of oil to gas for domestic consumption. The report indicates the DPR has an energy security fund to support the subsidy scheme etc.
The report closes with an updated outlook of nationalism “For us, nationalism is not a narrow view that rules out existence the interests of other nations. The new nationalism must be understood as the ability to interact, be of equal status, and in cooperation with other nations, while maintaining tolerance. The spirit of nationalism should be shifted from egocentric spirit into mutually supportive (co-existence), following three stages, namely; dependence, independence and interdependence. Nationalism today and in the future is the embodiment of the mutual dependencies and, mutual need. Google translate).The report ends with Lusut’s life is a reminder for professional idealism.
Langkah-langkah pernataan dan perbaikan sektor energi dan sumber daya mineral (ESDM).
Catatan Pada Peringatan hari jadi pertambangan dan energi ke-70.
Jakarta, 26 September 2015.
Kementerian Energi dan Sumber Daya Mineral 2015
Biro perencanaan dan kerjasama sekretariat jenderal kementrian neregi dan sumber daya mineral.