Oil, gas sector has strategic role in energy transition: minister

Oil, gas sector has strategic role in energy transition: minister

Minister of Energy and Mineral Resources (ESDM), Arifin Tasrif. (ANTARA/HO-Humas Kementerian ESDM/FR)

The world's energy policy is heading toward clean and renewable energy, at the moment, which will gradually replace fossil energy
Jakarta (ANTARA) - The oil and natural gas sector will play a strategic role in Indonesia's energy transition program, Minister of Energy and Mineral Resources (ESDM), Arifin Tasrif, said in a statement released here on Wednesday.

"The world's energy policy is heading toward clean and renewable energy, at the moment, which will gradually replace fossil energy. To this end, a measured conversion process is required in this transitional period, so oil and natural gas (sector) still has a strategic role," Tasrif remarked.

Currently, the government is finishing designing the National Energy Grand Strategy by placing two important concurrent agendas, namely increased production of oil and natural gas and reduction of carbon emissions, he informed.

Related news: Government should develop new roadmap for energy transition: IMEF

The oil and natural gas industry can still be the mover of the national economy and trigger other economic activities, the minister said.

As of July 2021, oil and natural gas has proven to be one of the most resilient industries despite the pandemic: it contributed around Rp47.58 trillion in Non-Tax State  Revenue (PNBP) to the nation's economy, Tasrif noted.

The minister urged all oil and natural gas Collaboration Contract Contractors (KKKS) to improve the exploration of oil and natural gas in order to reach the oil production target of 1 million BOPD and 12 BSCFD of gas by 2030.

The government is arranging the regulation in order to assist in the refinement of oil and natural gas management with the hope of attracting scores of investors to Indonesia, he said.

"By publishing the Job Creation Law and forming the Investment Ministry, the government is making an effort to improve the attractiveness of Indonesia's investment so that more foreign direct investment can flow into Indonesia," Tasrif added.

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