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Despite energy transition, oil and gas remain crucial: Minister
The oil and gas sector will remain a key growth driver for Indonesia in years to come, the energy minister has said, while urging a “measured” process for the transition to renewables.
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An employee checks a meter regulator station at a gas pipeline facility in Probolinggo, East Java, in this undated photo. (Antara/Umarul Faruq)
T
he oil and gas sector will remain one of the key growth drivers for Indonesia in years to come despite a steady global shift to renewable energy, a minister has said.
Energy Minister Arifin Tasrif said on Sept. 1 that the government was currently devising the National Grand Energy Strategy (GSEN) containing several goals, including increasing oil and gas production and reducing carbon emissions.
“A measured transition process is necessary, and the oil and gas sector remains of strategic importance in this [transition],” he said during the Indonesian Petroleum Association Convention and Exhibition (IPA Convex).
The government aims to reduce oil imports through various measures, including greater reliance on the country’s abundant natural gas resources for domestic use and pushing electric vehicle (EV) adoption.
The upstream oil and gas industry drove the national economy and encouraged the emergence of other economic activity, Arifin claimed.
As of July, the oil and gas sector contributed most to nontax state revenue (PNBP) at Rp 47.58 trillion (US$3.3 billion), 57.22 percent of the total Rp 83.14 trillion PNBP from the energy and mineral resources sector.
Read also: Pertamina plans to invest $12b in new, renewable energy by 2026
