Indicative Budget Ceiling of Ministry of EMR for 2021 is Rp6.84 Trillion

MINISTRY OF ENERGY AND MINERAL RESOURCES

REPUBLIC OF INDONESIA

PRESS RELEASE

NUMBER: 218.Pers/04/SJI/2020

Date: 26 June 2020

Indicative Budget Ceiling of Ministry of EMR for 2021 is Rp6.84 Trillion

Minister of Energy and Mineral Resources (EMR) Arifin Tasrif affirmed the indicative budget ceiling of the ministry for 2021 will be used for the benefits of Indonesian people. A budget of Rp6.84 trillion has been set with Commission VII of the House of Representatives (DPR) of Republic of Indonesia on Wednesday (25/6).

"We'll do our best to make sure the budget approved by DPR will be used for the benefits of the people," said Arifin in a Working Meeting between Minister of EMR with Commission VII of the DPR RI in the DPR Building in Senayan, Jakarta, on Wednesday night (25/2).

The indicative budget ceiling, explained Arifin, is up by 10% compared to the Revised State Budget (APBN-P) of 2020 which was set at Rp6.2 trillion. Just like the previous years, physical spending receives a larger portion than both non-physical and apparatus spending.

The physical spending makes up 47.1% or Rp3.22 trillion of the indicative ceiling. The budget will be used for, among others, construction of household gas networks, converter kits for fishermen, converter kits for farmers, conversion of kerosene to LPG, Rooftop Photovoltaic systems, renovation of volcano observation posts, geopark development, and geological hazard mitigation equipment.

As much as Rp1,59 trillion or 23.2% of the indicative ceiling will be allocated for non-physical spending such as fostering, monitoring, public service/licensing, formulation of policies/regulations, surveys, research and development as well as education and training. The remaining 29.7% or Rp2.03 trillion will be spent on apparatus needs such as payment of salaries and allowances, operations and maintenance of the office, procurement of working equipment.

"In principle, the ministry (of EMR) supports programs for the people. Therefore, we should safeguard the main programs of the EMR sector together," said Arifin.

Focus on Infrastructure Construction

In 2021, the EMR sector will place its focus on three infrastructure, namely oil and gas; New, Renewable Energy and Energy Conservation (NREEC), and Geological Agency.

In the oil and gas subsector, the budget will be allocated for the construction of household gas networks for 138,206 house connections (SRs) at a total budget of Rp1.4 trillion and distribution of 25,000 converter kits for fishermen at a total Rp218.8 billion.

In addition, as many as 25,000 converter kits will be distributed to farmers, and 139,070 packages of 3-kg LPG cylinder will be dealt out as part of the kerosene to LPG conversion at a total budget of Rp70.4 billion.

In the NREEC subsector, the budget will be used to construct rooftop photovoltaic systems on office buildings/social buildings/houses of worship with a capacity of 21 Mega Watt Peak (MWp) and total budget Rp463.3 billion, revitalization of 22 NRE power plants at a budget of Rp111.7 billion, installation of 46 solar power plants to support the duties of state ministries/agencies at Rp60.6 billion, distribution of 25,000 electricity tubes at Rp93.5 billion, and installation of Solar Powered Street Lighting (PJU-TS) at 18,888 spots.

The budget for the Geological Agency will be used to renovate 5 volcano observation posts at a budget of Rp11.8 billion, installation of geological hazard mitigation system at 4 locations at a budget of Rp23.3 billion, development of geopark information center at 2 locations at Rp7.5 billion, formulation of 8 recommendation of geothermal resource and reserve prospect at Rp426.2 billion, development of oil and gas data and information/seismic survey at 3 locations at Rp104.8 billion, and development of groundwater networks monitoring at 11 Groundwater Basins at Rp31.8 billion.

The minister and Commission VII have also agreed to carry out further review on the 2021 budget and to increase the budget for activities that have direct impacts on the people. Commission VII has asked Ministry of EMR to add the volume of converter kits and electricity tubes in the Revised 2021 Budget, so that as many as 50,000 converter kits will be distributed to fishermen and farmers respectively, and the number of electricity tubes will be added to 50,000 units.

Arifin welcomed the results of the meeting and expressed his expectation that the budget implementation will run smoothly. "We appreciate the conclusions that we have reached. We hope we can immediately conquer the Covid-19 pandemic and our economy will soon recover. For the 2021 State Budget, we hope we'll be given the chance to revise it. Thank you," said Arifin. (IY)

Head of Bureau of Communication, Public Information Services, and Cooperation

Agung Pribadi (08112213555)

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