RI needs over $505b for energy development<\/p>\n
JAKARTA (JP): Indonesia's energy sector needs at least US$505
\nbillion in new investment during the current 25-year development
\nprogram, which ends in 2019, to meet increasing demand for
\nenergy, an official said.<\/p>\n
Secretary-General of the Ministry of Mines and Energy Umar
\nSaid told a seminar organized by French alumni yesterday that
\napproximately $480 billion is required in the electricity sector
\nalone.<\/p>\n
He said Indonesia needs at least $240 billion to build power
\nplants with a total generation capacity of 160 gigawatts and a
\nfurther $240 billion to construct electricity transmission and
\ndistribution networks before 2019.<\/p>\n
\"That national electricity system will create a really
\ncompetitive market. The private sector and state-owned
\nelectricity firm PT PLN will compete, in real terms, in that
\nmarket,\" Umar said.<\/p>\n
He said the government will no longer be able to provide
\nsufficient funds for electricity investment, but will act as a
\nmarket regulator to ensure a level playing field.<\/p>\n
As most future electricity plants will be coal powered,
\nIndonesia must build new infrastructure to transport
\napproximately 170 million tons of coal per annum from coal mines
\nto power plants. Such facilities include railway lines,
\nlocomotives, train cars, conveyors and ports.<\/p>\n
Although Indonesia's energy consumption is slowly shifting
\nfrom oil to gas and coal, the oil industry will remain important
\nbecause many existing industries and consumers still rely on oil-
\ngenerated energy.<\/p>\n
Oil currently fulfills 65 percent of Indonesia's energy needs.
\nA further 21 percent is provided by gas, 7.5 percent by coal and
\n4.7 percent by other sources. By 2019, only 15 percent of the
\ntotal energy consumed in Indonesia will come from oil.<\/p>\n
The per capita consumption of energy is predicted to increase
\nfrom the current level of 2.6 barrels of oil equivalent to 12.3
\nbarrels in that time.<\/p>\n
Umar projected that during that period the output of
\nIndonesia's crude oil will decrease from the current 558 million
\nbarrels per annum to 495 million barrels.<\/p>\n
To meet continuing demand for oil-generated energy, Indonesia
\nneeds $15 billion to build at least five oil refineries, each
\nwith a processing capacity of 125 barrels of crude oil per day.<\/p>\n
A further $10 billion is required for oil-related
\ninfrastructures such as ports, tankers and oil depots as well as
\ndistribution pipelines, networks and outlets.<\/p>\n
\"Some of that investment cost can be avoided by using a free
\ntrade system, that is importing some of our energy needs from
\nforeign sources. However, we still need to build related
\ninfrastructures here, such as distribution networks,\" Umar said.<\/p>\n
He said Indonesia's current challenge is to diversify its
\nenergy sources to meet increasing demand for energy, which is
\nanticipated to reach 3.2 billion barrels of crude oil by the year
\n2019.<\/p>\n
Indonesia must also equip itself with advanced energy
\ntechnology, eliminate energy subsidies, create a competitive
\nenergy market and diversify the ownership of energy projects, he
\nsaid. (rid)<\/p>",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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