The government has raised investment targets in the energy sector to US$35.9 billion for 2020, increased US$4.0 billion from the US$31.9 billion realized in 2019. The energy and mineral resources ministry (ESDM) sid the target is higher than the US$33.4 billion the government set last year.
The figures, the ministry detailed, consisted of investments in the oil and gas sector of US$13.8 billion, the electricity of US$12.0 billion, minerals and coal of US$7.8 billion and new renewable energy and conservation of US$2.3 billion.
One of the highlights was to cut 186 permits. It is expected that these efforts can accelerate and simplify the investment process in the energy sector. ESDM 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 US$70 per ton for power generation and replacing the use of fuel at plants.