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mid challenges to energy security and the threat of lower investment due to global economic woes, President Susilo Bambang Yudhoyono has high expectations for the two new members of his economic team.

Yudhoyono appointed on Wednesday Rudi Rubiandini, upstream oil and gas regulator BPMigas’ operations deputy, as the new deputy energy and mineral resources minister and Chatib Basri, vice chairman of the National Economic Committee (KEN), as head of the Investment Coordinating Board (BKPM).

Rudi replaces Widjajono Partowidagdo, who died in April, while Chatib replaces Gita Wirjawan, who was appointed trade minister in the last cabinet reshuffle.

“Like Widjajono, [Rudi] has real action plans to support our energy policies, including the energy efficiency program,” Yudhoyono told reporters at a press conference at the Bogor Presidential Palace, West Java.

Yudhoyono said he hoped Rudi would develop policies and action plans to improve the performance of Indonesia’s resource industry.

In response to his appointment, Rudi said he would focus on developing energy diversification so as to achieve a more sustainable energy mix in the future amid declining oil production.

“Demand grows rapidly, but we face difficulties in catching up with the demand due to poor infrastructure. The number of oil refineries is limited, so it’s necessary to build new plants. The pipelines channeling gas to the downstream sector are also not sufficient,” Rudi said.

“The role of geothermal has to be boosted. We have 40 percent of the world’s reserves. We also have 12 hours of sunlight a day, which is a tremendous opportunity to develop solar energy. We need to also to remain open to the possibility of continuing our nuclear program,” he said.

On non-oil and gas resources, Rudi said Indonesia would follow through on its plan to create added value to raw minerals. Recently, the government issued stricter export requirements for 65 raw minerals and imposed a 20 percent export tax.

Special measures were necessary, he said, to encourage domestic mineral processing.

“We also have to strengthen supervision over the size of mining areas, production calculations, tax payments and corporate social responsibility programs of mining companies,” Rudi elaborated.

In the electricity sector, he was committed to helping to increase the electrification ratio, while pushing PT PLN to improve its operational and business efficiency.

An energy expert from ReforMiner Institute, Pri Agung Rakhmanto, hailed Rudi’s appointment. He said Rudi was a person with the same caliber as the late Widjajono.

“Rudi is a professional and, judging by his track record, he is free from [business or political] interests,” he told The Jakarta Post.

Rudi graduated from Bandung Institute of Technology (ITB) in 1985, majoring in oil and gas engineering. He pursued his doctorate in oil engineering at the Technische Universitaet Clausthal in Germany and graduated in 1991.

Rudi is one of only a few senior government officials that have referred publicly to the Lapindo volcanic mud flow in Sidoardjo, East Java, as a man-made disaster, disputing the government’s official stance on the matter.

On the appointment of Chatib, Yudhoyono said strengthening the investment sector was crucial amid the protracted global economic crisis and its consequent potential impact on foreign investment.

He said Chatib had been active in contributing his ideas on national economic development and business.

“I believe he is suited to be the head of the BKPM […] Amid the current global economic turbulence, maintaining trade and investment is very important,” he said.

According to Chatib, it is a challenging task to improve the investment value in the country during the economic crises in Europe and the US, which have started to loom over the global economic situation.

“This is not an easy task. Hard work from all sectors is needed so that investment can really contribute to the growth of our economy,” said Chatib, as quoted by Antara news agency.

Besides being a member of KEN, Chatib is also a lecturer at the University of Indonesia (UI). He completed his undergraduate studies at UI in 1992, studied for his master’s in economic development at the Australia National University and received a PhD from the same university in 2001.

An economist from the Institute for the Development of Economics and Finance (INDEF), Ahmad Erani Yustika, said he was in no position to comment on whether or not Chatib was the right man for the job, but he had two recommendations for him.

“First, Chatib has to be able to increase the proportion of domestic investment, which currently only accounts for 30 percent of total investment. Second, investment outside Java has to be boosted,” he said.