Energy and Mineral Resources Minister Ignasius Jonan briefs the press on revocation of regulations - Photo by MEMR

JAKARTA (TheInsiderStories) – Indonesian government hopes the realization of investment in the energy and minerals sector will rise in 2019, said one senior official today (01/03). Last year, the investment realization recorded US$32 billion, grew by 16,36 percent compared to the previous year of $27.5 billion.

Deputy Minister of Energy and Mineral Resources Arcandra Tahar stated, the oil and gas investment only reached $12.3 billion, from this year target $16.8 billion. While, mineral sectors contributed $6.8 billion dollars.

In addition, the investment in electricity sector also not reached the target worth of $11.3 billion, far from the target of $12.2 billion, but higher compared to last year’ results $9.1 billion. The problem, the 35,000 megawatts projects cannot be invested until 2024, cause the excess capacity over the  demand.

Moreover, the investment in the renewable energy also has not shown a satisfactory results. The realization of investment in this sector only worth of $1.6 billion or 25.8 percent of the ministry target of $6.2 billion but higher than a year ago $1.3 billion, but is still far from the target of $2 billion.

For the 2019 projection, Tahar not give any clues. But. he hoped there will be an increase in investment in 2019, moreover the trend of oil prices that continue to rise.

On the other hand, Minister Ignasius Jonan conveyed there is a large investment, especially in exploration project, ready to develop in this year. He said, the ministry has obtained exploration commitments up to $2 billion.

Written by Daniel Deha, Email: theinsiderstories@gmail.com