Minister Arifin Expects EMR Sector Plays Central Role in Development during Pandemic
MINISTRY OF ENERGY AND MINERAL RESOURCES
REPUBLIC OF INDONESIA
PRESS RELEASE
NUMBER: 192.Pers/04/SJI/2020
Date: 29 May 2020
Minister Arifin Expects EMR Sector Plays Central Role in Development during Pandemic
The Covid-19 pandemic does not necessarily slow the performance of Ministry of Energy and Mineral Resources (EMR). Minister of EMR, Arifin Tasrif, outlines several strategic measures introduced in the EMR sector to deal with the pandemic to maintain services to the public.
"We must not underestimate (Covid-19), we anticipate it by taking precautions. In the last three months, the Indonesian nation has been fighting against the Covid pandemic which has shocked not only the health sector but also other sectors including the economic sector which covers the energy and mineral resources sector," explained Arifin at the virtual halalbihalal of the Family of Ministry of EMR titled 'Silaturrahim Strengthens Energy Expansion amid Pandemic' on Friday (29/5).
Arifin admits the pandemic has exerted its impacts on the economic sector, resulting in lower income, job loss, and loss of purchasing power. "Despite all limitations, the government has taken anticipatory measures by giving (fiscal) stimulus to maintain purchasing power, health, to ensure availability of food and services for the public," said Arifin.
Minister of EMR has answered the challenges of the EMR sector by introducing several strategic policies, among others, issuance of policy and regulation on natural gas price adjustment for certain industries which aim to give a stimulus that will improve competitiveness, lift national economy, and give a multiplier effect of labor absorption.
"We've carried out the mandate of Presidential Regulation Number 40 of 2016 on Natural Gas Pricing, including for the State Utility Company PLN, in which electricity gives positive benefits for state finance," Arifin stated.
Currently, 14 amendment to natural gas sales agreements have been signed between 4 Contractors of Production Sharing Contracts and 11 natural gas buyers for fertilizer industry, steel, and industry sector through pipeline facility owners. The signing was witnessed directly by Minister of EMR on Wednesday (20/5) with a total volume over 330 British Barrel Thermal Unit per Day (BBTUD).
Another accomplishment is the completion of the Mineral and Law Bill which has taken into consideration the increase in people's welfare. Arifin says the government will immediately formulate regulations below it in the forms of Government Regulation and EMR Ministerial Regulation. "We'll formulate these regulations carefully and in the shortest time," explained Arifin.
Next, Ministry of EMR will promote the provision of clean energy through the conversion of PLN's diesel-fueled power plants to gas. "In addition to efficiency that relates to the economic side (cost), the policy gives a benefit in the form of (reduced) load on the environment," continued Arifin.
No less important achievement is the downstreaming of the mineral and coal subsector as well as the on-target completion of upstream projects and energy infrastructure.
Arifin expects the EMR sector will continue to give real contribution to Indonesia's economic movement amid the pandemic, all the more so because Indonesia is predicted to enter the top 10 countries with the highest economic growth. "In this era of free trade, all countries are interdependent, there is take and give. But whoever is more competitive, he wins the game. Thus, the EMR sector must play a central role as an agent of development," Arifin emphasized. (IY)
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