Energy Conservation Director of the ESDM Ministry Luh Nyoman Puspa Dewi stated that energy efficiency was the most economical way to deal with the energy crisis that drove up the economic value of energy to be very high.
"Many countries have implemented energy efficiency. This is a step that we can take without cost (involved)," Dewi stated in a discussion titled "Mid-Year Economic Outlook 2022" that was monitored in Jakarta, Tuesday.
In June 2022, the ESDM Ministry stated that the global energy prices were still high, triggered by the geopolitical conflict between Russia and Ukraine, which caused the Indonesian crude oil, or ICP, to reach US$104.22 per barrel, Aramco's LPG price at US$750 per barrel, and coal reference price to reach US$323.9 per ton.
The high price of energy, especially crude oil, makes the economic value of gasoline to reach Rp18,000 per liter and the economic value of diesel to touch Rp19,000 per liter.
Dewi noted that Indonesia is still dependent on the imports of fuel due to the decline in production and increase in fuel consumption, so several regions in Indonesia were experiencing a fuel crisis.
"High consumption in the transportation sector has resulted in a (fuel crisis) in several locations. The high economic value of fuel makes it very difficult for us to continue to apply subsidies," Dewi stated.
The ESDM Ministry continues to strive to increase the use of new and renewable energy while maintaining the balance of the Energy Trilemma in order to build sustainable energy.
The Energy Trilemma is applied by increasing the generating capacity and ensuring fair distribution and affordable electricity prices as well as to be accepted by the community in a reliable, quality, and environmentally friendly manner.
Dewi explained that the Energy Trilemma comprises three interconnected and bound components, with the first being energy equity that should take into account affordability and availability.
"Available here means independent. We manage the energy source ourselves and do not depend on any party and reduce dependence," she explained.
The second is the energy security component that encompasses aspects of safety and reliability. This component seeks to provide energy that takes into account the supply chains that exist in the country and abroad and provides the existing infrastructure for its services. The third component is environmental sustainability that is green and clean.
The ESDM Ministry is preparing for new and renewable energy-based infrastructure development using low-carbon energy sources, including through increasing energy efficiency from both the supply and demand side.
Related news: ETWG to seek energy transition breakthroughs ahead of G20 Summit
Related news: Youth involvement in energy transition essential: official
Translator: Sugiharto P, Azis Kurmala
Editor: Rahmad Nasution
Copyright © ANTARA 2022
