In all sectors including the energy sector, our dependence on imported products must be suppressed as much as possible. In accordance with the President's directive, an independent national energy industry is an important foundation for energy sovereJakarta (ANTARA) - State-Owned Enterprises Minister Erick Thohir has said that an independent national energy industry is an important basis for energy sovereignty.
"In all sectors including the energy sector, our dependence on imported products must be suppressed as much as possible. In accordance with the President's directive, an independent national energy industry is an important foundation for energy sovereignty," he said in a written statement received here on Thursday.
The minister lauded the President's decision to continuously push and encourage Indonesia to process raw materials into finished products. The national palm oil sector is an example — Indonesia no longer imports raw materials, but processes them into finished materials instead, he said.
"With the better quality of human resources supported by adequate infrastructure, it serves as a momentum for us to be able to manage ready-to-use industries," he said.
The minister accompanied President Joko Widodo to the inauguration of a biodiesel factory in Tanah Bumbu district, South Kalimantan province, on Thursday.
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Speaking at the event, the President highlighted the importance of the inauguration of PT Jhonlin Agro Raya's factory towards building national energy security. He urged Indonesia to reduce fuel imports by utilizing alternative energy, saying it also serves as an important foundation for national energy security.
Thohir said he supported this notion and highlighted that the use of alternative energy, such as biodiesel, is the government's focus.
According to President Widodo, domestic biodiesel production would reduce imports and cut foreign exchange by Rp56 trillion (almost US$4 billion) in 2021.
Expediting the development of the biodiesel industry is a strategic choice to increase national energy security and reduce the large trade balance deficit due to diesel imports in the future, he explained.
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Indonesia produces abundant crude palm oil that can be used to make biodiesel, he noted. According to the President, the potential for crude palm oil production in Indonesia has reached 52 million tons per year.
He said he expected the resource to be processed into other products, including biodiesel. Thus, Indonesia can lower fuel imports and help to boost energy security, he remarked.
Suppliers and other industries will also be required in the process of transforming crude palm oil into biodiesel, thereby increasing the possibility to create several new jobs, he pointed out.
Job creation in the downstreaming of natural resources is an important goal that can offer economic benefits to the community, the President said.
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Translator: Aji Cakti, Mecca Yumna
Editor: Fardah Assegaf
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