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Jokowi has work to do in energy sector: Energy watchdogs
Last year, the government introduced a policy requiring all oil and gas contractors (KKKS) to prioritize selling their products to Pertamina rather than for export.
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The government has handed Pertamina at least 12 oil and gas blocks’ contract bids as compensation for the company’s willingness to keep fuel prices below market price. (Courtesy of/Pertamina EP)
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ncumbent President Joko “Jokowi” Widodo, who early vote counts show will retain the presidency, has lots of work ahead of him in the energy sector in his second term, according to energy watchdogs.
Local energy think-tank Institute for Essential Services Reform (IESR) executive director Fabby Tumiwa said the energy sector needed to be improved.
“He needs to focus on improving infrastructure quality, services and increasing investment,” Fabby told The Jakarta Post on Thursday.
He added that the government should also address problems related to the electrification ratio, which is approaching 100 percent. The government increased the electrification ratio by installing solar-powered energy saving lamps (LTSHE), which is a temporary policy.
“It’s crucial to improve the quality of electricity supply outside Java-Bali and remote islands. Given the fact that LTSHE only lasts three years, a permanent solution needs to be implemented,” he said.
Meanwhile, global energy think tank Wood Mackenzie (WoodMac) said the April 17 elections would not change the country’s energy policies much and would only have a small effect on investment climate in the sector.
WoodMac research director Andrew Harwood said in a press statement on Thursday that the elections would not be able to reverse “a statist trend” in the upstream oil and gas sector.
