Minister of Energy and Mineral Resources (ESDM), Arifin Tasrif, said the energy efficiency program could help reduce foreign exchange imports and increase foreign exchange exports for Indonesia.
“An industry that implements this program can become more competitive and reach a wider market," he highlighted at a press conference on the joint working meeting of the ESDM and industry ministries in Bogor, West Java, on Monday.
Russia's invasion of Ukraine has disrupted the energy supply due to the imposition of sanctions by the United States and its allies, which has pushed up the global prices of oil, gas, and coal, Tasrif noted.
In June 2022, the price of Indonesian crude oil or ICP was recorded at US$121.47 per barrel, Aramco's LPG was priced at US$750 per metric ton, and the reference coal price or HBA stood at US$323.91 per ton. The spike in energy prices led to an increase in the number of subsidies and compensations allocated by the Indonesian government.
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Therefore, the ESDM Ministry is encouraging quicker adoption of clean energy sources to support domestic industries since industries need cheaper energy. The ministry also needs to improve the energy infrastructure in the country to guarantee the supply of clean energy to all industries in need.
"Many industries still use energy sources with movable transportation, such as land transportation. If we can build distribution networks and infrastructure, this will greatly help the economy of the industry," Tasrif said.
At the joint working meeting, the ESDM and industry ministries discussed several strategies for aligning their programs so that they can have a major impact on national development.
Meanwhile, Minister of Industry, Agus Gumiwang Kartasasmita, said the current global geopolitical dynamics have proved very disruptive for the industrial sector, especially raw material supply chain disruptions.
In response, the Ministry of Industry has implemented the China One Plus strategy in the industrial context, considering that the world's supply chains mostly depend on China, which means that if China is disturbed and locked down, the global manufacturing industry would get disrupted.
"Through the China Plus One formulation, we are asking all multinational companies engaged in manufacturing, apart from investing in China, to also invest in Indonesia," Kartasasmita said.
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Translator: Sugiharto Purnama, Resinta S
Editor: Suharto
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