The government has raised investment targets in the energy sector to US$35.9 billion by 2020 - Photo by the ministry office.

JAKARTA (TheInsiderStories) – The government has raised investment targets in the energy sector to US$35.9 billion by 2020, increased $4.0 billion from the $31.9 billion realized in 2019, the energy and mineral resources (EMR) ministry announced today (01/09). The target is greater than the $33.4 billion the government set last year.

“The government is encouraging economic growth and national employment by raising the investment target in the energy sector this year. With the realization of $ 31.9 billion in 2019, we believe the 2020 target can be realized,” EMR minister Arifin Tasrif said at a press conference at his office.

The figures, the minister detailed, consisted of investments in the oil and gas sector of $13.8 billion, the electricity of $12.0 billion, minerals and coal of $7.8 billion and new renewable energy and conservation of $2.3 billion.

Tasrif said the ministry and its stakeholders tried to achieve the target. It is due to the energy sector is very strategic in boosting the country’s economy. The government, he said, would try to make the investment climate more passionate and conducive for investors.

“Investment realization usually follows the S-curve. We will spur investment to be faster. It’s in accordance with President Joko Widodo’s direction, we are asked to work faster, carefully and productively,” he said.

One of the highlights of the minister was to cut 186 permits. It is expected that these efforts can accelerate and simplify the investment process in the energy sector.

“The licensing aspect, both the speed and bureaucracy, will continue to be evaluated so that it can encourage faster investment and provide certainty. The investment is important because it will encourage employment so that it effectively becomes the country’s prime economic mover,” the minister said.

The minister revealed the permit became the main factor that made the realization of investment in the energy sector in 2019 below the target. The non-tax state revenue from the energy sector only reached Rp172.9 trillion from the target of Rp214.3 trillion.

In detail, the realization consisted of the oil and gas sector amounting to Rp115.1 trillion from the target of Rp159.8 trillion, followed by the mineral and coal sector amounting to Rp44.8 trillion from the target of Rp43.3 trillion.

Then new and renewable energy amounting to Rp1.9 trillion from the target of Rp9.9 trillion, and other sectors (contributions from downstream oil and gas business entities, domestic market obligation, data sales, rental services, training) of Rp11.1 trillion from the target of Rp10.3 trillion.

To encourage this year’s performance, the ministry implements strategic programs and policies includes accelerating refinery project decisions, launching oil and gas data access, capping the price of coal at $70 per ton for power generation and replacing the use of fuel at plants.

Written by Lexy Nantu, Email: lexy@theinsiderstories.com