Jakarta – The Ministry of Energy and Mineral Resources (MEMR) said that the demand for fossil energy is still increasing during the energy transition period, as the utilisation of renewable energy is not yet optimal.
Tutuka Ariadji, Director General of Oil and Gas at the Ministry of Energy and Mineral Resources, stated that investment in the oil and gas sector 2023 is around USD 15.56 billion, of which the downstream sector contributes USD 1.9 billion. Indonesia is committed to achieving zero carbon emissions by 2060.
“This shows that the fossil energy business continues to grow, even though infrastructure challenges still exist,” Ariadji said when delivering a keynote speech at a hybrid discussion forum entitled ‘Examining Energy Prospects 2024, Savoury or Bland?’ organised by the MEMR Journalists Forum.
Ariadji said that the government has taken several strategic steps, including providing flexibility in the type of cooperation contracts in the oil and gas sector, accelerating oil and gas field development projects, and increasing the use of domestic gas. He also emphasised the importance of investing in natural gas infrastructure supporting gas network interconnectivity.
Anggawira, Chairman of the Indonesian Energy and Coal Suppliers Association (Aspebindo), explained that fossil energy opportunities must still be optimised before renewable energy can be optimised in Indonesia. He highlighted the need for competitive investment incentives to support the fossil energy business. (Hartatik)
