Thursday, 29 October 2020 | 15:39 WIB

Indonesia Targets being Self-Sufficient on Oil-Gas by 2025

illustration: offshore oil refinery (timesindonesia)

JAKARTA, NETRALNEWS.COM - The government, through the Ministry of Energy and Mineral Resources, says Indonesia is hopeful to become self-sufficient in oil and gas to fulfill domestic needs by 2025.

"If there is no discovery of new oil and gas potentials, the projection of oil production up to 2050 will continue to decline, therefore we in the Ministry of Energy and Mineral Resources dream of being independent of oil and gas by 2025, so as not to import again," said Susyanto, Secretary General of Directorate General of Oil and Gas on Friday (9/15/2017).

In the 90's, oil and gas commodities contributed the second after taxes. Now, this result is decreasing. Indonesia can no longer depend on oil and gas as a commodity for state revenues.

In 2021, he continued, oil and gas sector is predicted to still dominate the percentage of state revenue. While in 2025, oil and gas sector will only be used by 22 percent from the previous use of 24.29 percent.

This fact is inversely proportional to the position of Indonesia as a country that has large reserves of oil and gas resources. Currently, oil and gas production amounts to 820 barrels of oil per day (BOPD). This is not directly proportional to oil and gas consumption of 1.6 million BOPD.

Meanwhile, the growth of oil and gas consumption increased to three percent per year. Thus, to meet the needs, Indonesia still imports up to 780 BOPD.

"If there is no new potential discovery, our oil and gas production will continue to decline, therefore we must conduct exploration and efforts in the hope that domestic oil and gas needs will be met and 2025 will be self-sufficient," he said.

To realize Indonesia's self-contained oil and gas 2025 and to Indonesia 2050, he continued, there are many challenges. However, the key is food, energy and water.

"To strengthen all three (food, water, energy) the key is more even growth in all parts of Indonesia," he said.

In addition, he said, the development of infrastructure and connectivity that support growth, innovation and technology in encouraging the utilization of resources, quality of human resources to compete globally, and food and energy security.