TheJakartaPost
Please Update your browser
Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.
Danantara champions oil and gas projects ahead of renewables
The country’s newest sovereign wealth fund will prioritize the use of natural gas to support the country’s downstream industries and as a transition energy on the way toward cleaner power, according to the energy ministry.
Change text size
Gift Premium Articles
to Anyone
Share the best of The Jakarta Post with friends, family, or colleagues. As a subscriber, you can gift 3 to 5 articles each month that anyone can read—no subscription needed!
Rising demand: An oil refinery is seen from a ferry on July 9, 2024, in Balikpapan, East Kalimantan. (AFP/Yasuyoshi Chiba)
T
he country’s newest sovereign wealth fund, Danantara, will prioritize oil and gas projects over renewable energy infrastructure in its first investment round.
Eniya Listiani Dewi, the Energy and Mineral Resources Ministry’s renewables director general, said on Tuesday that oil and gas remained the top priority for now under Energy Minister Bahlil Lahadalia’s directive.
“We’re accelerating oil and gas [projects], because we’re still gasping for supply,” said Eniya, as quoted by Katadata. “This is also to support the long-term electricity procurement plan (RUPTL), which requires gas during the transition [to renewables].”
She added that the country “needs to boost reserves to support its transition to renewable energy”.
Read also: Danantara snubs megaproject Nusantara in investment priorities: State Palace
According to a draft of the 2024-2033 RUPTL, 75 percent of the country’s additional energy production capacity is to come from renewable sources, while the rest will rely on gas as a balancing source.
The energy minister revealed in January that national gas demand was expected to rise to 1,471 billion British thermal units per day (BBTUD) in 2030 and to 2,659 BBTUD in 2034, state-owned new agency Antara reported in January.
