NUSA DUA, BALI – The increase of Indonesian economic growth affected to the
increase of energy needs, no exception to gas. In front of the participants of
Gas Information Exchange in Asia Pacific (GASEX 2012) from 15 countries,
Minister of Energy and Mineral Resources (Minister of EMR) asked investors to
start investing for renewable energy (RE) development and emphasized that
domestic gas need will always be the main priority.
“There are three things we should kept because it was predicted to be
scarce; first, foods availability, second, energy availability and last water
availability. All countries have to calculate the energy availability in the
country and what could they contribute to the world,” said Jero Wacik, Tuesday
(9/10/2012).
Indonesian economy grows well. Every year we grow for more than 6%, a
growth we should thanked to. It is not easy to a country to grow more than 6%.
Indonesia worked hard for it and cooperated with investors who investing their
money in Indonesia, so we achieved the growth of 6, 4%, 6, 5%, 6,3% every year.
The economic growth and improvement affected to energy needs. Indonesia energy
needs will absolutely follow the economic growth itself such as electricity
need, gas need and others continuously increase, so we invite you all and
companies to invest in Indonesia.
“Indonesia has almost all the world resources. Lately, the world concerns and investors interests to invest in Indonesia are greater. Some months ago, we held Indonesia Petroleum Association Conference concerning oil and gas. The participants of the conference were from all over the world. There was a huge exhibition, showing that oil and gas industries in the world seriously concerned and invested in Indonesia. Some months ago, in this room, I inaugurated the Coaltrans Asia Conference attended by coal buyers, sellers, and miners,” said the minister.
He also added that, “Today is gas meeting. The committee reported that there are more than 500 foreign participants of 15 countries. It shows that Indonesia potency in gas becoming the world concern. Next week, there will be international meeting in Bali concerning electricity. We exported the most of Indonesian gas due to the fact that we did not need it much, we were hypnotized by oil and we still have abundance oil,”
He also stated that, “However, past gone by because now, oil decreases, so our gas need increases for electricity, industry, and also for motor vehicles. It brings consequence for gas sales.”
“For me as the Indonesia Minister of EMR and also for Energy Ministers all over the world, the state interests is number one priority. Gas, coal and other energies we produce should first dedicate to Indonesia interests. Surely that we would not break the existing contracts, we will always strengthen the partnership with all energy and mineral resources investors all over the world. We will discuss it well if any basic changes happen to investment climate in Indonesia.
He gave example, gas exploration mining in Tangguh Papua managed by British Petroleum (BP), Train 1 and 2 have produced 100%; some exported to Fujian and some exported to Sempra America. 100% of export, like I already explained, by having recent need, I negotiated with BP. I explained how Indonesian need of gas and I am delighted because BP understood the situation and they would like to revise the existing agreement. Absolutely it is for Indonesia interests and to keep or BP train 1 and 2 interest. BP has allocated to Indonesia for 230 million cubic feet per day and now train 3 is prepared. I am delighted to know that train 3, BP will mention in the new contract that 40% of the gas production is for Indonesia domestic need.
“Foreign companies accept advantages, but Indonesia and Indonesia interest have to be our interests,” said the minister. “Now, it’s time for us to think the solution how to overcome the gas need of other countries if we need more for domestic. Surely that we plan to develop the renewable energy, we have abundance geothermal energy potency. The existence program is Fast Track Program 10.000 MW. The other renewable energies we want to develop are hydropower, solar power, and biomass, said the minister.
The minister also explained about the relationship between RE and gas, “If renewable energy development does not succeeded, sorry to say that we have to utilize gas production we usually exported to be utilized for domestic needs. We will also prioritize coal for domestic need. However, if renewable energy development succeeded, surely that the gas production could be exported even if there are more gas discoveries, there will be more gas to export.”
“I am sure that investors will continuously come to Indonesia. We widely open our hand to you all. It’s time for you all to invest more in Indonesia. Go to develop renewable energy and invite your friend to invest in Indonesia. I believe that wee will succeeded to develop RE because I facilitate it, then gas export could be increased,” said the minister. (EMR/AK)
“Indonesia has almost all the world resources. Lately, the world concerns and investors interests to invest in Indonesia are greater. Some months ago, we held Indonesia Petroleum Association Conference concerning oil and gas. The participants of the conference were from all over the world. There was a huge exhibition, showing that oil and gas industries in the world seriously concerned and invested in Indonesia. Some months ago, in this room, I inaugurated the Coaltrans Asia Conference attended by coal buyers, sellers, and miners,” said the minister.
He also added that, “Today is gas meeting. The committee reported that there are more than 500 foreign participants of 15 countries. It shows that Indonesia potency in gas becoming the world concern. Next week, there will be international meeting in Bali concerning electricity. We exported the most of Indonesian gas due to the fact that we did not need it much, we were hypnotized by oil and we still have abundance oil,”
He also stated that, “However, past gone by because now, oil decreases, so our gas need increases for electricity, industry, and also for motor vehicles. It brings consequence for gas sales.”
“For me as the Indonesia Minister of EMR and also for Energy Ministers all over the world, the state interests is number one priority. Gas, coal and other energies we produce should first dedicate to Indonesia interests. Surely that we would not break the existing contracts, we will always strengthen the partnership with all energy and mineral resources investors all over the world. We will discuss it well if any basic changes happen to investment climate in Indonesia.
He gave example, gas exploration mining in Tangguh Papua managed by British Petroleum (BP), Train 1 and 2 have produced 100%; some exported to Fujian and some exported to Sempra America. 100% of export, like I already explained, by having recent need, I negotiated with BP. I explained how Indonesian need of gas and I am delighted because BP understood the situation and they would like to revise the existing agreement. Absolutely it is for Indonesia interests and to keep or BP train 1 and 2 interest. BP has allocated to Indonesia for 230 million cubic feet per day and now train 3 is prepared. I am delighted to know that train 3, BP will mention in the new contract that 40% of the gas production is for Indonesia domestic need.
“Foreign companies accept advantages, but Indonesia and Indonesia interest have to be our interests,” said the minister. “Now, it’s time for us to think the solution how to overcome the gas need of other countries if we need more for domestic. Surely that we plan to develop the renewable energy, we have abundance geothermal energy potency. The existence program is Fast Track Program 10.000 MW. The other renewable energies we want to develop are hydropower, solar power, and biomass, said the minister.
The minister also explained about the relationship between RE and gas, “If renewable energy development does not succeeded, sorry to say that we have to utilize gas production we usually exported to be utilized for domestic needs. We will also prioritize coal for domestic need. However, if renewable energy development succeeded, surely that the gas production could be exported even if there are more gas discoveries, there will be more gas to export.”
“I am sure that investors will continuously come to Indonesia. We widely open our hand to you all. It’s time for you all to invest more in Indonesia. Go to develop renewable energy and invite your friend to invest in Indonesia. I believe that wee will succeeded to develop RE because I facilitate it, then gas export could be increased,” said the minister. (EMR/AK)
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