“In line with the directive of the minister (Energy and Mineral Resources Minister Bahlil Lahadalia), we want to accelerate (the growth of) oil and gas,” the ministry’s director general of new, renewable energy and energy conservation, Eniya Listiani Dewi, said here on Tuesday.
The reason for the government’s decision to prioritize the oil and gas sector is the lack of gas supply to expedite the implementation of the Electricity Supply Business Plan (RUPTL) and to support the energy transition, she explained.
Currently, Dewi is still identifying new energy and renewable energy projects that will be submitted to Danantara for funding.
“We will identify large projects, such as the existing hydroelectric power plant with a capacity of 1 gigawatt and the 2 gigawatt solar power plant, and wait for the direction from the task force (before submitting to Danantara),” she informed.
Earlier, Minister Lahadalia said that the government is planning to build an oil refinery with a capacity of 1 million barrels per day, up from the earlier target of 500 thousand barrels per day.
The construction of the refinery is among the 21 first-phase downstream projects that will receive an investment of US$40 billion. The projects are also part of the downstream investment target of US$618 billion for 2025.
In addition to the refinery, other major projects include the construction of an oil storage facility on Nipah Island, Riau Islands, to strengthen national energy security.
He further underlined the need to develop a downstream project to obtain dimethyl ether (DME) from coal raw material that can serve as a substitute for LPG imports.
In addition to the energy sector, downstreaming efforts will target other commodities such as copper, nickel, bauxite alumina, as well as the agriculture, fisheries, and forestry sectors, Lahadalia said.
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Translator: Putu Indah Savitri, Yashinta Difa
Editor: Azis Kurmala
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