State mining and energy firms told to improve efficiency<\/p>\n
JAKARTA (JP): President Soeharto has urged state mining and
\nenergy companies to become more efficient and called for a
\nnationwide drive for power conservation.<\/p>\n
"The mining and energy sector, which is very strategic for
\ndeveloping our industries as well as for attracting new
\ninvestments and generating foreign exchange earnings, needs more
\nefficient and effective management," the President said in his
\nspeech at the opening of a three-day workshop at the Ministry of
\nMines and Energy at the State Palace yesterday.<\/p>\n
He said that the government is aware that oil prices are still
\ndeclining and "I don't think that the prices will soon recover,"
\nhe said.<\/p>\n
Given this fact, he said that production costs need to come
\ndown.<\/p>\n
Wile oil prices fluctuate at between US$13 and $14 per barrel,
\nPertamina claims that its production costs range between $6 and
\n$8 per barrel.<\/p>\n
Minister of Mines and Energy Ida Bagus Sudjana said that his
\nministry is committed to streamlining licensing procedures for
\ninvestment in mining and energy.<\/p>\n
The meeting yesterday proceeded at Pertamina's headquarters
\nafter the opening ceremony at the State Palace. Today,
\nCoordinating Minister for Economy and Finance Saleh Afiff and
\nSate Minister of Administrative Reforms T.B. Silalahi, are
\nscheduled to address around 360 officials.<\/p>\n
The director for private electricity affairs at the
\nDirectorate General of Electricity, Moeljadi Oetji, told The
\nJakarta Post that the planned efficiency improvements will be
\nalso implemented in the procedures for licensing power projects.<\/p>\n
"Procedures for the licensing of the construction of a gas-
\nfueled electricity plant, for example, still take around 1.5
\nyears and coal-fired and geothermal power plants take four years
\neach," he said.<\/p>\n
President Soeharto suggested that Indonesia accelerate
\ndiversification of energy production and utilization to reduce
\ndependence on oil, the reserves of which are limited.<\/p>\n
The operation of diesel plants by industry, for example,
\nshould be reduced gradually because electricity supplies by the
\nState Electricity Company (PLN) have been increasing.<\/p>\n
"We are no longer in an electricity crisis and the operation
\nof diesel powered generators by industrial plants should be
\ngradually reduced for the benefit of the nation and the companies
\nthemselves," Soeharto said. (fhp)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/state-mining-and-energy-firms-told-to-improve-efficiency-1447893297",
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