Minister of Energy and Mineral Resource Arifin Tasrif said Indonesia booked US$30.3 billion investment in the energy and mining sector throughout 2023, an increase by 11 percent from the previous year.
“If we look at the trend, we have had pretty good trend in 2018, 2019 and 2020 during the Covid-19 pandemic, a recovery in 2021 and 2022, and a surge in 2023 with realization at US$ 30.3 billion.” Arifin told an annual media conference in Jakarta on Monday, January 15, 2024.
In terms of investment rate, oil and gas sector still dominates the landscape at US$15.6 billion, followed by mineral and coal sector at US$7.46 billion, renewable energy sector at US$1.5 billion and electricity sector at US$5.8 billion.
Meanwhile, non-tax revenue (BNPB) sector has exceeded the target of Rp 300 trillion with the contribution of oil and gas sector worth Rp 117 trillion.
Coal and mineral sector contributed greatly in the past 2 years due to the increased demand in the global market and high commodity price.
” In 2024 we are targeting Rp 227.3 trillion of PNBP, ” the minister said.
In the oil sector, Indonesia has managed to maintain oil production above 600,000 barrels per day, or 605,000 barrels per day to be precise. The production figure is on a downward trend because there are no new well sources that can be added into new production of crude oil.
“In 2024, we have set a number of programs and businesses to maintain and also to increase the production. One of the programs is to utilize idle wells that have the potentials but not been pursued. We want the empowerment program to be in place in the first quarter of 2024 and just needs to be launched. We are encouraging efforts to optimize lifting by enhancing by water flood and chemical methods,” Arifin explained.
Arifin added that downward trend also occurs in the gas sector, with indications of a slope. The operation of Train 3 of Tangguh LNG is expected to increase and optimize lifting. He cited that Indonesia discovered several large gas deposits in 2023, including the North Ganal Gang (5.8 tcf) and condensate and exploration discoveries in the Andaman bloc. These discoveries will be pushed immediately so that the certainty of production can be achieved within 2030.
“We also continue building our infrastructure to accommodate additional gas supply from new production that can be optimized. So, the Cirebon-Semarang gas transmission project must be completed by early 2025,” he said.
“We also have to start the construction of the Dumai and Sei Mangkai transmission projects to anticipate additional Andaman block production. So it will take several years to accommodate additional Andaman gas, so that it can secure domestic supply,” he added.
In the coal and mineral sector, Indonesia has already the Simbara system that integrates coal. He hoped that this year nickel and tin and other mineral will enter the system . By that there is an optimism of increased state revenue, increasing compliance of business actors, creating an ecosystem that oversees state policies and utilising one mineral and coal data.
“We see also that the use of domestic coal is increasing every year. We see that the yellow trend is increasing, because there is electricity demand and there are additional new power plants from the 35 GW project. We see that our coal exports have also increased because there is an increasing demand and the supply of other energy alternatives has been disrupted,” he explained, adding that Indonesia produce 775 million tonnes of coal with 213 million were supplied to domestic market and
518 millions tonnes for export markets.
