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Letter: Reducing dependence in oil
As a consequence of relatively high economic growth and rapid population expansion, power consumption in Indonesia has been on the rise
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As a consequence of relatively high economic growth and rapid population expansion, power consumption in Indonesia has been on the rise.
Indonesia is endowed with abundant and varied energy sources, including fossil energy and renewable energy. Mindful of finite oil and coal reserves, which at present provide most of the country's energy, the government has been encouraging the replacement of oil with other indigenous energy sources.
Even as the government has begun restructuring energy prices -- by gradually eliminating subsidies and by promoting energy conservation programs -- the oil reserve is being diminished. It is, therefore, imperative that we identify and implement other measures to reduce dependency on oil. In particular, the use of cleaner, non-oil energy sources has to be accelerated.
The total (proven and possible) reserve of natural gas in Indonesia is around 182 TSCF. The government has encouraged the industrial sector to increase its use of Indonesia's natural gas as a fuel or industrial raw material.
Increasing oil prices; technological advances in natural gas use, transmission, and transportation; a new national plan for natural gas transmission and expansion of distribution networks -- all point to how crucial the preservation of natural gas reserves has become to Indonesia.
It is now time for the business sector (we should not just rely on the government and PLN) to implement alternative power sources such as natural gas, which is sufficiently available in this country.
Decentralized generation of natural gas power using co-generation technology is an important option for independent power generation -- one that uses relatively cleaner and cheaper natural gas as fuel.
The country should not rely on coal as its main source of energy because of the environmental damage caused by coal-based energy systems.
SMIT
Jakarta
