Coordinating Minister for Maritime Affairs (Image credit: Coordinating Minister for Maritime Affairs)

JAKARTA (TheInsiderStories) – Indonesian coordinating minister for maritime and investment affairs Luhut Binsar Pandjaitan said he is upbeat the investment target in the energy sector excluding oil and gas reaches US$63.6 billion until 2024.

This was conveyed by Pandjaitan during the “Advanced Indonesian National Coordination Meeting” in Bogor, West Java on Wednesday (11/13). In his presentation, the minister mentioned 14 projects with their respective investment values.

Among these, the industrial zones for nickel downstream in Morowali and Weda Bay worth $20 billion, industrial zones for natural resources downstream in North Kalimantan of $20 billion, Persada Lygend HPAL Facility for nickel downstream industry by $1.2 billion.

Furthermore, PT Freeport Indonesia‘ smelter project for the copper downstream industry is valued at $3 billion, Lotte Chemicals in Banten for the petrochemical industry by $3.5 billion, Toyota’s hybrid car investment for the automotive industry worth $2 billion.

Then, Hyundai‘s electric vehicle project for the automotive industry with a value of $1 billion, high-speed train Jakarta-Bandung for the rail transportation industry of $6 billion, PT LRT Jakarta valued at $2.2 billion, Kuala Tanjung port development for the port industry with an investment of $2.5 billion.

Also, the construction of Kediri Airport for airport transportation of $300 million, Mandalika tourism area of $900 million, Qatar investment in Labuan Bajo worth $500 million, and Lake Toba‘s development for the tourism industry of $500 million.

To support the investment target, his government has taken a number of measures, including removing regulations and licenses that hinder investment, promoting faster and reliable investment procedures and accelerating strategic decision making, Pandjaitan said.

Furthermore, the minister said the investment target in the energy sector – coal and mineral, electricity, renewable energy and oil, and gas – would rise by 39.2 percent this year to $37.2 billion from $26.7 billion last year.

He said the investment in coal and mineral sector has been set to reach $6.2 billion this year, up from $6.1 billion last year, investment in electricity sector is targeted to reach $2.2 billion, up from $9.1 billion, investment in oil and gas is targeted to rise to $16.8 billion from $10.2 billion, while investment in renewable energy is set at $2.0 billion, up from $1.3 billion a year earlier.

The total investment in the coal and mineral sector accounts for 17 percent of total energy investment, according to Pandjaitan. The bulk of investment in the oil and gas sector will go to the upstream sector amounting to $9.33 billion and downstream at $0.85 billion.

He said the coal sector remains an important sector to support the country’s energy mix until 2050 and Indonesia expects to raise coal supply to the domestic market but has no plan to restrict exports of coal. The recent domestic market obligation policy is simply aiming at assuring electricity is accessible and affordable to the people.

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