in the wake of a government reshuffle, with BP and expand its activities in West Papua, Indonesia believes it can reduce its dependence on fossil fuels.
On July 27, the President Jokowi announced a cabinet reshuffle. He named Tahar Archandra as new Minister of energy and mineral resources of the nation, replacing Sudirman Said. The President believes that the move will enhance the performance and the overall effectiveness of government.
"I am shocked when the President appointed me to become the new Minister of Energy and Mineral Resources," said Tahar Kompas after being inaugurated by Jokowi. "I just talked to the President about the problems Indonesia is facing at the moment, which is oil and gas. In this discussion, I came up with some solutions that could be applied in the country, on the basis my experience in the United States. "
Tahar is an expert in the field of energy. The Indonesian national who spent over 20 years in the fossil fuel sector as president of Petroneering, an oil and gas company headquartered in Texas. Before that, he earned a doctorate and master's degrees in ocean engineering from Texas A & M University. new energy minister of the archipelago also holds interests in several offshore oil fields. Jokowi Tahar expected to bring new technology to the nation in order to stimulate energy production, but also for the energy future of the nation as a whole is secured.
Tahar acknowledged ambitious goal of President to transform Indonesia into a nation with the production of autonomous energy. According to him, there are three ways to increase local production. Indonesia will adopt a new technology, the development of its human resources, and implement a process for improved accountability in all aspects of the energy sector.
Before the reshuffle, the former minister Said stressed that Indonesia was addicted to oil and gas, with some solutions of his own that would see the archipelago explore renewable alternatives. First, Said suggested a return to the level of fuel subsidies from the government, which would result in higher fuel prices for consumers. Second, Said suggested that the nation seek to eliminate fossil fuels as the main energy source in Indonesia. He launched an idea that aims to make the nation's coal consumption of cutting 50 percent of overall energy pie, while reducing gas consumption to 25 percent. If done right, such a plan would free the remaining 25 percent of the nation's energy demand to be met by renewable alternatives.
After the redesign, it remains unclear whether Tahar will follow with noble vision of the previous administration to a quarter of renewable energy in Indonesia.
In addition, the International Energy Agency (IEA) supports the plan of the archipelago to make more energy environmentally friendly. That said, many proposals of the former minister Said met with opposition by the IEA Executive Director Fatih Birol said in an interview with The Jakarta Post .
Birol agrees that Indonesia should put energy efficiency standards in place to reduce carbon emissions from industries and vehicles. However, it also suggests that the government first reduced its number of coal power plants. Birol believes that if Indonesia can handle those two things, "we will see a big clean up the air in Indonesia."
Birol said the government should make renewable energy his top priority, and open the sector to foreign investment. His logic is that there are not many places in the world quite like Indonesia that are ripe for clean energy games. The five-megawatt solar power plant peak recently completed in Kupang is an interesting step towards a possible future of solar energy in Indonesia. For electricity produced by the turbines of the ocean, Indonesia is also attractive, as the country has a variety of coastal and tidal conditions to work with.
According to the IEA, 6.5 million people worldwide die each year from risks to health associated with air pollution, with many of its root causes and remedies are in the energy sector. An important part of this, the agency said, occurs in the development of Asia and Africa. Reduce appetite Indonesia for fossil fuels is the best way to reduce pollution, thus reducing premature deaths that are related to it, says the IEA.
But as the number of vehicles continues to increase by 12 percent annually in Jakarta - on average 4,000 new bikes and 1,500 new cars a day - the government also pays a heavy price. Traffic and congestion costs about the city Rp.65 trillion (US $ 5 billion) annually.
Hermono Sigit working closely with Indonesia Ministry of Environment and Forests. Its working title is deputy assistant control the degradation of terrestrial, and his job is to carry out field studies and report to the government. Sigit also believes the archipelago can capitalize on its inherent potential for clean, renewable energy.
"Rather than using fossil fuels and coal as a primary energy source, Indonesia can use other things like geothermal energy as an alternative," said Sigit Indonesia Expat . "Some renewable energy solutions that can be applied in Indonesia include biogas from animal waste, micro-hydro, solar or for really large projects. Solar is a source of long-term energy and Indonesia can develop this solution, especially in small villages. "
in recent years, the government has established an ambitious program to add 35,000 megawatts to the nation's power capacity come 2020. the plan relies on foreign investment to develop the capacity of power generation of the nation as a whole.
Indonesia-investment reports that London-based BP, one of the leading conglomerates of oil and gas in the world, recently presented its final decision the Investment Development to develop the natural gas facility liquefied Tangguh in West Papua. Construction is expected to cost about US $ 8 million, and the plant is designed to add 3.8 million tonnes of oil per year to its current operation. The expansion is expected to commence in the fourth quarter of 2016 and should be completed by 2020.
Despite claims that Indonesia needs to reduce its dependence on fossil fuels, the authorities and the Government welcomed BP with open arms. Against any expectation intuitive, the former minister said (who wanted to clean energy account for 25 percent of national consumption) claimed the BP expansion was indeed the solution needed to meet local demand of 'energy.
electricity company owned by the State of Indonesia Perusahaan Listrik Negara (PLN) is reported as the biggest customer. PLN will buy 75 percent of the LNG produced by the expansion.
Archanda also said that he will follow through with the president's plan to build the gas block oil refinery Masela onshore Indonesia. It is planned to hold meetings with stakeholders in the energy sector in the first fortnight of August.
"I will ask them one by one on what assistance they need. If the Ministry of Energy and Mineral Resources are not able to overcome the problems, I will discuss with the president to find a solution so that the program is well managed, "Tahar said recently to reporters.