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Tuesday, October 18, 2016

Former Minister, This is Jonan's Promise



Ignasius Jonan admitted that he had received direction from the Coordinating Minister for the Economy Darmin Nasution to solve problems in the field of energy and mineral resources. Therefore, he is ready to study the problems and accelerate the strategic projects under President Jokowi's orders.

Ignasius Jonan

The Ministry of Energy and Mineral Resources (ESDM) Office on Monday (10/17) morning was suddenly crowded. Several former ministerial officials arrived, Ada Purnomo Yusgiantoro Former ESDM Minister during the era of President Susilo Bambang Yudhoyono, Sudirman Said Former Minister of ESDM era Joko Widodo. 

Fadel Muhammad

   There was also Deputy Chair of the House of Representatives Commission VII Fadel Muhammad. Their visit was to witness the handover of the position from the Acting Minister of Energy and Mineral Resources Luhut Binsar Panjaitan to Ignasius Jonan.

Lots of homework for Jonan. Jonan also realized that he had no background in energy. But he still believes that he is able to lead this very strategic ESDM sector because he has a very strong capital.

"I have only one capital at this time, I am a former Minister,"

Even so, Jonan has received direction from the Coordinating Minister for the Economy about several issues in the ESDM sector, namely gas prices and plans to form zoning per region in Indonesia. In addition, Jonan also began to map a number of other priority programs. One of them is the 35,000 MW project target that should pursue electrification.

Jonan said that currently Indonesia's electrification was still 85%. By completing the 35,000 MW project he namely electrification rose to 95%.

"This is a very important focus. The 35,000 MW power plan if the transmission is not sufficient is useless. It is tolerable for a day to talk like this,".

In the oil and gas sector, Jonan also mentioned that there had been a discussion related to technology and cost recovery.

"The Coordinating Minister directs that cost recovery must be fair"

Jonan also highlighted the concepts of development in the energy sector such as gas management and oil exploitation which often did not involve the local community.

"Local people must be involved, want to sell bread or what should be involved. For example in the Masela Block, if onshore, local people must enjoy the benefits," explained Jonan.

In the mineral and coal sector, Jonan said there were challenges in Smelter, copper mineral concentrate, and revision of the mineral and coal law. In general, Jonan is aware of the many priorities he must work on. For that he also asked for time to study this sector.

The Masela Block By Inpex Corporation

"Some priorities such as Masela, East Natuna, relaxation of Mineral and coal exports and Government Regulations, 35,000 megawatts projects, PLN and Pertamina are more efficient, draft oil and gas taxation, Freeport and Newmont issues, revisions to coal and oil and gas mineral laws.

East Natuna Block

Chairman of the DPP Hiswana Migas Eri Purnomohadi warned that Jonan also should not forget about the downstream oil and gas infrastructure which is still minimal. Because so far entrepreneurs have been reluctant to build oil and gas infrastructure because the margins set by the government are too small.

"Entrepreneurs who have built LPG Fuel Filling Stations (SPPBE) in the last 10 years only received a margin of Rp 3 per kilogram," he said. Though the margin should be around Rp 600-700 per kilogram.

Kontan, Page-14, Tuesday, Oct 18, 2016


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