BPH Migas Commitment To Support Environmentally Friendly Fuel Utilization

JAKARTA - The Downstream Oil and Gas Regulatory Agency (BPH Migas) is committed to supporting the use of clean and environmentally friendly energy, including encouraging the development of modern refineries and the use of lower sulfur fuel.

Member of the BPH Migas Committee Abdul Halim in his statement in Jakarta, Thursday, said that the transformation of the use of cleaner, lower emissions and environmentally friendly fuels is very important, in line with Indonesia's commitment to reduce greenhouse gas emissions and improve air quality.

"The application of clean and environmentally friendly fuel is part of a wider national energy transition effort, towards energy independence, and creating a better and sustainable future. BPH Migas continues to encourage the development of modern refineries, strengthening regulations, and increasing public awareness of the importance of clean and sustainable energy," he said at a coordination meeting related to fuel in Yogyakarta, quoted from Antara, Thursday, October 3.

BPH Migas realizes that these changes are not easy. The challenges faced are very complex, ranging from technical, economic, to regulatory aspects. However, he continued, with the spirit of collaboration and innovation, these challenges are believed to be overcome together with relevant stakeholders.

"The support of all stakeholders, ranging from industry, academics, local governments, to the wider community, is very important to make this policy a success," he added.

To support the implementation of low fuel sulfur or environmentally friendly fuel, it is related to the Regulation of the Minister of State-Owned Enterprises Number 1 of 2023 concerning Special Assignments and the Social and Environmental Responsibility Program of State-Owned Enterprises. In this regulation, business entities get assignments, including in the provision and distribution of environmentally friendly fuel.

Halim added that the government also continues to finalize regulations related to Clean and Environmentally Friendly Fuel Roadmaps.

This regulation will form the basis for BPH Migas in assigning assignments for distributing environmentally friendly fuel to the assignment and supervision business entity for its implementation.

"Currently, it is a transition period towards the implementation of low fuel sulfur. We use the best possible time to coordinate with all parties. For example, what kind of low fuel sulfur specifications, commercial prices, and compensation are. We need to map it properly so that the assignment business entity in carrying out assignments from the government, is in the corridor of the existing law," he explained.

A follow-up coordination meeting to discuss this will be held by presenting relevant stakeholders, such as the Ministry of Finance and the Directorate General of Oil and Gas at the Ministry of Energy and Mineral Resources.

"Inputs from stakeholders will perfect this policy, including its implementation in the field," said Halim.

Member of the BPH Migas Committee, Basuki Trikora Putra, said that the implementation of environmentally friendly fuel requires careful preparation before being carried out by the assignment business entity.

"Based on the presentation carried out by the assignment business entity, the preparation for the implementation of low sulfur fuel is quite good. However, there will definitely be technical and operational matters that are challenges in its implementation. That's where it is important for us to coordinate," said the man who is called Tiko.

He also hopes that the coordination of all relevant parties will continue, so that the implementation will run smoothly.

Meanwhile, Senior Vice President (SVP) Government of the Management Program of PT Pertamina (Persero) Aris Mulya Azop welcomed the coordination and input provided by stakeholders regarding plans to implement environmentally friendly fuel, including BPH Migas.

"This coordination is in preparation for the implementation of low fuel sulfur or clean and environmentally friendly fuel. The goal is that at the time of implementation, we carry it out in accordance with applicable regulations. From this meeting, Alhamdulillah, there are many inputs and we feel more ready to implement this policy. Furthermore, we will follow up on these inputs internally and also coordinate further with the Ministry of Energy and Mineral Resources and others," he said.

The meeting was also attended by a number of members of the BPH Migas Committee, namely Eman Salman Arief, Harya Adityawarman, Iwan Prasetya Adhi, Saleh Abdurrahman, and Yapit Sapta Putra, then Director of BBM BPH Migas Sentot Harijady BTP and VP PSO Management PT Pertamina (Persero) Irto Ginting.