Energy Minister Presents Budget Implementation List of 2021
MINISTRY OF ENERGY AND MINERAL RESOURCES
REPUBLIC OF INDONESIA
PRESS RELEASE
NUMBER: 370.Pers/04/SJI/2020
Date: 27 November 2020
Energy Minister Presents Budget Implementation List of 2021
Minister of Energy and Mineral Resources (EMR) Arifin Tasrif has presented the DIPA (Budget Implementation List) of 2021 to 12 higher echelons within the ministry. He expected that flexible implementation of the budget with adherence to the transparency and accountability principles will overcome the volatility and uncertainty challenges in the future. "Please prepare risk registers for all major projects," Minister Arifin underlined.
Risk identification is aimed at minimizing project cancellation common in previous years. "Please complete any supporting data to open budget blocking (by Ministry of Finance). Immediately invite tenders so that projects can be executed in early 2021," said Arifin at the presentation ceremony on Friday (27/11).
Four Main Focus
Arifin went on to say that according to the directive of President Joko Widodo, budget absorption has been targeted on the recovery of the national economy.
"There are four budget focus that we need to pay attention to," said Arifin, naming health care, social protection, economic recovery especially for Micro, Small, and Medium Enterprises and local businesses as well as structural reforms in health, education, and social assistance.
Therefore, government spending is expected to turn the wheels of the national economy.
In the EMR sector, the largest portion of the budget is allocated to Directorate General of Oil and Gas, followed by Directorate General of New, Renewable Energy and Energy Conservation (NREEC), and the Geological Agency. The budget allocation for the three units totals Rp4.4 trillion (62.8%), with infrastructure spending amounting to Rp3.4 trillion (49.2%).
The oil and gas infrastructure budget is among others projected for gas networks and oil-fuel to gas-fuel converter kits for fishermen and farmers. The infrastructure budget in the NREEC subsector will be used for rooftop solar power stations, revitalization of renewables power plants, solar power stations that support the performance of state ministries/agencies duties, electricity tubes (a device to store electricity), and solar-powered public lighting.
Meanwhile, the infrastructure budget of the Geological Agency will be used for volcano observation posts, mitigation system of the Geological Agency, center for geopark information and development of geological heritage, oil and gas seismic surveys, and development of groundwater monitoring networks.
The Ministry of EMR has set 196 tender packages for 2021. As many as 139 packages, amounting to Rp 2.8 trillion, are offered in 2020, while the remaining 57 tender packages will be offered in 2021 at the value of Rp 599 billion. (IY)
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