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Indonesia's energy industry underperforms in 2019: Ministry data
The shortfall in energy investment corresponded with decreased investment in renewables, oil and gas and mining industries.
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Clean energy: A gas station worker in the West Papua city of Bintuni serves his customers. The government is promoting biofuels such as B30 biodiesel to reduce the country's dependency on fossil fuels. (JP/Jerry Adiguna)
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ndonesia’s energy industry saw shortfalls across most sectors in 2019 as the country faced economic uncertainties, from the general election at home to Brexit and to the United States-China trade war.
Data from the Energy and Mineral Resources Ministry released on Dec. 9, 2019 showed that investments totaling US$31.9 billion in the sector were significantly lower than the year’s target of $33.4 billion, as well as the $32.9 billion targeted the previous year.
The shortfall in energy investment corresponded with decreased investment in renewables, oil and gas and mining industries — in that order. Investments were on target and higher than the previous year only in the electricity industry.
“[The ministry] will no longer be a factory of rules, but a facilitator of industry growth,” Energy and Mineral Resources Minister Arifin Tasrif said, expressing his aim to stimulate investment in the industry. The ministry’s efforts toward this end included building infrastructure, deregulating the industry and improving electricity and natural resource supplies, he said.
The industry’s poor performance sets Indonesia back from its ambition to achieve a 23 percent renewable energy mix by 2025 and reducing the trade deficit caused by oil imports.
The ministry’s data recorded the steepest investment shortfall in the renewable energy industry with investments reaching $1.5 billion, 83 percent of the 2019 target and unchanged from 2018.
Due to limited funding, renewable energy generated 10,157 megawatts (MW) last year, lower than the 13,900 MW targeted in the National General Energy Planning (RUEN) road map.
