Observers Express The Important Role Of Sea Transportation In Encouraging Economic Growth

JAKARTA - President Prabowo Subianto targets economic growth to reach 8 percent which must be supported by energy resilience, and one of the keys to energy security.

Energy economic observer at FEB, Padjadjaran University, Yayan Satyakti, assessed that the key role of energy resilience is reliable and efficient energy transportation that has been carried out by Pertamina International Shipping (PIS) which transports fuel oil (BBM) and Liquidized Petroleum Gas (LPG) throughout Indonesia by sea.

"Given the condition of our country as an archipelagic country, the reliability of energy transportation will stabilize the availability of domestic energy, especially fuel and LPG. This is the important role of PIS as a blood vessel for energy distribution," Yayan said in his statement, Wednesday, December 4.

Yayan added that the stability of fuel and LPG supply is very important to drive the wheels of the economy in the manufacturing, transportation, MSME, and household economy sectors so that it will trigger acceleration of economic growth.

"From the input flow data and economic output published by BPS, we can simulate that to pursue eight percent growth in 2026 with the Net Zero Emission 2060 scenario, Indonesia requires a 2.7-fold investment from 2016 as a benchmark," he said.

According to Yayan, to achieve the target of 8 percent by 2026 in the energy sector, it requires an additional 1.82 gas plants, an additional 1.25 times geothermal, and a 0.5 times diesel power plant from 2016.

"This target requires strong support in the form of reliable and efficient energy logistics," he explained.

Yayan assesses PIS as part of Pertamina, has an important role in supporting the national energy logistics system where each year manages more than 20 thousand calls per voyage for domestic energy needs.

"As a major player in energy logistics, PIS must be able to anticipate a double increase in energy needs by 2030, especially to support 8 percent economic growth. This capability will be the backbone in maintaining national economic stability," he said.

Furthermore, Yayan revealed, the development of even logistics infrastructure from western, central, to eastern regions of Indonesia will increase the efficiency of energy distribution and strengthen national energy security.

He said that energy is driving the wheels of the economy and if energy logistics does not run smoothly, the impact can be doubled to other economic sectors.

According to Yayan, by strengthening buffer stock, increasing energy logistics efficiency, and building adequate infrastructure, Indonesia can ensure the realization of stable energy supply for all parts of Indonesia.

"This solid energy resistance will be the key to achieving the economic growth target," Yayan concluded.