5th Session of the National Energy Board Members

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5th Session of the National Energy Board Members

Monday, 02 August 2010 08:10

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5th Session of the National Energy Board Members
Sidang ke-5 Anggota Dewan Energi Nasional
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1. Members of the National Energy Board has prepared a draft National Energy Policy (KEN). KEN The materials include:

Chapter I. Introduction,
Chapter II. Currently conditions that include: Energy Management Paradigm, Energy Resources and Reserves, Energy Infrastructure, Energy Subsidies and pricing; Energy Management, Technology and Energy Research and Development, Conservation and Energy Efficiency, Environment and Safety.
Chapter III, Projections of Energy Requirements 2010-2050,
Chapter IV. Provision of Optimum Energy Mix 2010-2050 yan,
Chapter V. Principal of the National Energy Policy 2010-2050, which includes:

1) Public Policy Energy from 2010 to 2050:
a) Changing the paradigm of energy resources as a commodity becomes
as the development of capital;
b) Increase the proven reserves of fossil energy and reduce its share in the national energy mix;
c) Increase the share of new and renewable energy resources (EBT);
d) Improve efficiency programs, conservation, and environmental protection;
e) Improving management of energy independence, job creation, skills and role of industrial and domestic energy services;
f) Flatten / distribute access to oil, gas and electrical energy for urban and rural communities;
g) Securing energy supplies, especially electricity and gas for the short, medium and long;
h) Optimize the utilization of energy resources in the national economic development;
i) Establishing and securing the support of national energy reserves.

2) Energy Policies by Type of Primary Energy (Oil and Gas, Coal, Renewable Energy (Bio Fuel, Geothermal, Solar Energy, Marine and Nuclear Energy).
2. DEN members agreed that it supported den KEN synergize with sector polices .
3. The Current Energy Issues discussed and still is the thinking members of the Elements Stakeholders DEN (AUPK) are:
A. Electricity Basic Tariff (Lowering Capital Cost Electricity Production)
a) Use of Coal Mine Mouth Power Plant
- Most (86%) Indonesian coal is coal-calorie / low quality (low rank) and moderate (medium rank), so it proposed a few things: The government set up specifically low rank coal utilization and fiscal treatment for the development of mine mouth power plant to reduce electricity production costs.
- Provide incentives for development of mine mouth power plant, among others, automatic permission to build, tax incentives and feed in tariff for mine mouth power plant to PT PLN network.
- The Government shall regionalized including mine mouth coal power plant

b) Use of gas for domestic
Indonesia has the potential for greater natural gas from oil bumi.Discovery potential oil reserves declining since 2003, resulting in a decline in oil production is under-1 million barrels per day. Proposed to the Government to:
- Replacing some of the import of fuel with gas imports, particularly for installations that are ready to use on gas electricity, industry and others. Accelerating development of power plants that use natural gas.
- Joint private sector soon build gas infrastructure, including LNG receiving terminal, pipeline transportation, SPBG (gas refueling stations), and gas infrastructure to meet the needs of city gas in power sector.

c) For the development of renewable energy is proposed to the Government to:
- Provide tax incentives for renewable energy development and exploitation (of free tax, tax reduction, tax deferral, and tax or interest borne by the government).
- Provide incentives for energy-dis-renewable. Applying the depletion premium is allocated from some royalties and taxes for renewable energy development.

B. Energy for Transportation
a) the substitution of fuel with CNG
- Keep in the provision of infrastructure, trade, demand, supply and supervision of BBG. For that, some things required are:

1) The Government needs to develop gas utilization policy for a more integrated transport and roadmap development and SPBG gas network.
2) The Government needs to reposition the related state-owned national energy supply (PT PLN, PT PGN, Pertamina and PTBA) in order to control the SOEs in the national energy supply.
3) Strengthen the coordination of various sectors (Ministry of Energy and Mineral Resources, Ministry of Finance, Ministry of Enterprise, Ministry of Industry) and Local Government.
4) Ensuring the availability of funds for infrastructure development BBG.
b) energy efficiency and alternative energy use in transportation systems
- To encourage increased efficiency, the specific mechanisms required, namely:
1) The Government needs to develop electric cars (electric cars: plug-in vehicles) using wind energy, solar and nuclear power which produces lower emissions than using petroleum.
2) Use of energy efficient vehicles.
c) Improving the fuel subsidy mechanism
- The concept of applying targeted fuel subsidies and social impact into account. Government fuel subsidies only apply to mass transportation and private vehicles are two oil-fired wheel.
- Enacting the fuel subsidy is fixed (not dependent on world oil prices), especially transportation fuel that is used for pushing.
- In determining a fixed subsidy budget subsidies should be provided not only chargeable to the state budget but also from the regional budget.
- The fuel subsidy was gradually reduced and pursued non-subsidized fuel in 2014.

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