High oil, gas imports inhibited economic transformation: president

High oil, gas imports inhibited economic transformation: president

President Joko Widodo opens a meeting on the medium-term national development plan 2020-2024 at the State Palace in Jakarta on Monday. (Antara/Bayu Prasetyo)

It is not right to import avtur (aviation turbine) fuel, while CPO (crude palm oil) can also be converted into avtur fuel
Jakarta (ANTARA) - High oil and gas imports are one of the factors impeding economic transformation in Indonesia, according to President Joko Widodo (Jokowi).

"It is not right to import avtur (aviation turbine) fuel when CPO (crude palm oil) can also be converted into avtur fuel. Why are we fond of importing avtur fuel? Yes, because any of us has a hobby to import. Why? Because they can reap much profit. And because of that, economic transformation in our country has come to a standstill," he remarked in his opening address during a meeting on the medium-term national development plan at the State Palace in Jakarta on Monday.

Oil, gas, and petrochemical imports contributed significantly to the import value, thereby leading to the current account deficit, he noted.

The president gave instructions pertaining to the development of natural resources that can be converted into fuel, such as CPO into biodiesel and coal into gas.

The government will ensure that no party will hinder the development of energy as a substitute for imported oil and gas, he stated.

He pointed to the oil and gas mafia having played the game since long and extracted vast amounts of profits from oil and gas imports.

"I have found those who are fond of imports, and I know them. I repeatedly remind them to be cautious. I follow up on them. Do not prevent other people from converting coal into gas. Because of them, (the country) is inclined towards importing gas. If coal can be converted into gas, then we will no longer need to import gas," he stated.

The president also urged mining companies to not export raw materials. However, they can export mining products in the form of semi-finished goods to increase added value and create more jobs.

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