It has been five years since President Joko Widodo or Jokowi and Vice-President Ma'ruf Amin have ruled. In those five years, several policies in the energy and mineral sector were issued. One of the striking policies is the policy of removing subsidies for fuel oil (BBM).
President Joko Widodo
Jokowi from the beginning of his reign had wanted to revoke the fuel subsidy, which the previous administration could not do, namely the Era of President Susilo Bambang Yudhoyono. Therefore, IGN Wiratmaja Puja, Director General of Oil and Gas at the Ministry of Energy and Mineral Resources (ESDM) said that the policy of removing subsidies was the Jokowi administration's most successful program.
Understandably, the policy on fuel subsidies is sensitive and has generated a lot of controversy in the previous era, namely the era of President Susilo Bambang Yudhoyono.
"The significant reduction in subsidies was carried out without any turmoil, and the economy continues to grow," said Wiratmaja some time ago.
Jokowi's second program that is considered useful in the oil and gas sector is gas infrastructure development. In the Jokowi era, the construction of household gas networks (Jargas) and the construction of LPG refineries began with a 15-year investment of US $ 48.2 billion.
"It used to be hampered, now we already have a program and the construction is very fast. Energy utilization has also moved fast," said Wiratmaja.
In addition to this policy, recently President Jokowi also announced a single price for BBM throughout Indonesia, whose program began in Papua. Besides, the government has also spread LPG to a wider community with a converter kit program for fishermen. Unfortunately, several good policies in the downstream oil and gas sector are not accompanied by good achievements in the upstream sector.
Blogger Agus Purnomo in SKK Migas
Wiratmaja explained that until now the upstream oil and gas sector has not moved quickly because oil prices have fallen. This is reflected in the continuing decline in oil production. SKK Migas stated that last year's oil lifting was only 8230,000 barrels of oil per day (bopd) and this year it is only targeted to reach 820,000 bopd.
Until mid-October 2016, the average oil production only reached 834,600 BPD, and gas reached 6,900 mmscfd.
"We hope that the lifting by the end of the year will be up to 820,000 BPD", said Taslim Yunus, Head of Public Relations of SKK Migas.
Taslim also said, with the current decline in oil prices, the state revenue from the oil and gas sector was not optimal. The target oil price in the 2016 Revised State Budget (APBNP) is the US $ 40 per barrel. The average oil price is still at the US $ 38 per barrel. Wiratmaja admitted that the oil and gas sector regulations were not yet conducive for the upstream oil and gas industry. On the other hand, licensing of the upstream oil and gas sector has been trimmed from 146 permits, so far only six permits are sufficient.
Apart from the matter of policy, Satya Widya Yudha, a Commission VII DPR RI member, said that Jokowi's policy to disband Petral, a subsidiary of Pertamina, also deserves appreciation. Satya assessed that Jokowi's implementation of policies in the oil and gas sector has not been optimal, such as the BBM to gas fuel (BBG) conversion program. This problem cannot be separated from the distribution of domestic gas which is constrained by the lack of infrastructure. As a result, a lot of gas is still being exported.
Kontan, Page-14, Monday, Oct 24, 2016
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