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Jakarta Post

Energy investment less than half of target

  • Stefanno Reinard Sulaiman

    The Jakarta Post

Jakarta   /   Mon, August 13, 2018   /   09:18 am
Energy investment less than half of target Pertamina Hulu Energi West Madura Offshore (PHE WMO) workers are moved in a personnel basket from a ship to the company’s oil rig off the coast of Madura Island in East Java. (JP/Wahyoe Boediwardhana)

In the first half of this year, Indonesia booked US$9.48 billion in investment in the energy and mineral resources sector, only 25 percent of the full-year target of $37.2 billion.

The oil and gas sector contributed the most to the total investment at $5.11 billion, followed by electricity at $2.83 billion.

Meanwhile, the mining and renewable energy sectors recorded a respective $790 million and $750 million in the first half.

Responding to the results, the Energy and Mineral Resources Ministry said in a presentation made available to The Jakarta Post that global energy prices had become one of the main challenges in the past three years.

“The focus ahead is to continue with efforts that simplify regulations, strengthen investment facilities and speed up the process of making strategic decisions,” the ministry said in the presentation.

Energy and Mineral Resources Ministry spokesman Agung Pribadi told the press last Friday that investment in oil and gas would jump significantly in the second half, as was typical.

“The pattern of oil and gas investments can’t be seen in a period of months. We should wait for progress until year-end, during which we expect to reach the target,” he said.

Meanwhile, Upstream Oil and Gas Regulatory Special Task Force (SKKMigas) spokesperson Wisnu Prabawa Taher said that many activities at oil and gas blocks were still in progress and the result of investments would be seen by the end of the year.

“Investment realization will increase in the fourth quarter and the results will be seen with payment realization,” he said.