Budgeting Rp5.04 Trillion Ceiling, Electricity Subsidy Reform Is A Priority Next Year

JAKARTA - The government proposes an indicative ceiling of the Ministry of Energy and Mineral Resources (ESDM) for the 2022 budget year of IDR 5.04 trillion to the Indonesian House of Representatives (DPR). The budget is planned to be used to support priority activities in the ESDM sector. One of them, electricity subsidy reform.

"According to a joint letter from the Minister of PPN/Head of Bappenas and the Minister of Finance regarding the Indicative Ceiling for the 2020 FY, the Ministry of Energy and Mineral Resources has received IDR 5,045.8 trillion," Secretary General Ego Syahrial said, quoted on Saturday, June 5.

Of the total ceiling, Ego explained that as much as Rp2,969 billion or 58.9 percent will be spent on goods expenditures, Rp1,161.7 billion or 23 percent for capital expenditures and the remaining Rp914.5 billion or 18.1 percent for personnel expenditures.

Later, said Ego, the budget amount will be allocated to 12 organizational units within the Ministry of Energy and Mineral Resources with details of the Secretariat General getting a budget of Rp. 263 billion, the Inspectorate General of Rp. 66 billion, the Directorate General of Oil and Gas Rp. 1.7 trillion, the Directorate General of Electricity Rp. General of Mineral and Coal Rp478 billion, Directorate General of EBTKE Rp591 billion.

Then there is the ESDM Research and Development Agency of Rp. 456 billion, the Human Resources Development Agency of ESDM of Rp. 555 billion, the Geological Agency of Rp. 368 billion, the National Energy Council of Rp. 44 billion, BPH Migas of Rp. 249 billion and BPMA of Rp. 72 billion.

Ego said, the ceiling will be used for activities in the oil and gas sector, namely the construction of gas networks for households, the development of a BBM to BBG converter kit for fishermen and farmers, supervision of the distribution of subsidized LPG, oil and gas working areas that are prepared, determined and offered as well as transmission development. Cirebon-Semarang gas pipeline.

"The electricity sector includes reviewing and evaluating targeted electricity subsidies, reducing grid losses and generating efficiency, fulfilling access and electricity consumption for the community as well as accelerating electricity 24 hours/day," he explained.

Then, continued Ego, including support for the electricity sector in achieving greenhouse gas mitigation targets in the energy sector, controlling the construction of power plants, transmission and distribution networks, controlling smart grid development and cooperation in the electricity sector.

As for the EBTKE sector, the Ministry of Energy and Mineral Resources focuses on the construction of PLTS Roofs, PJU-TS, reduction of Greenhouse Gases (GHG) in the ESDM sector/Net Zero Emission strategy, minimum performance standards (SKEM) and Energy Saving levels on energy utilization equipment, power distribution equipment. electricity, and facilitation and construction of PLT EBT.

Meanwhile in the mineral and coal sector, said Ego, the Ministry of Energy and Mineral Resources prioritizes facilitation of accelerating domestic smelter development, formulating policies to accelerate the increase in coal added value and production plans and coal utilization for domestic needs, inventory monitoring of mining without permits, supervision and assessment of technology-based reclamation and post-mining. remote sensing, and optimization of mineral and coal non-tax revenues.

"In the geological sector there will be modernization of geological disaster mitigation system equipment, development of geological information centers and determination of geological heritage, development of volcanic observation posts, development of monitoring well networks, prospecting surveys of mineral, oil and gas and geothermal resources," he said.

The ESDM R & D sector will carry out process validation and readiness level of neodymium & scandium extraction technology from Red Mud for permanent magnets and lightweight materials, optimizing the manufacture of carbon precursors from coal pyrolysis tar products, mapping of marine geology and surveys of potential heavy minerals carrying rare earth elements, as well as maps NRE potential (PLT Bayu, Hydro and Biomass).

"Finally, in the field of human resource development, the Ministry of Energy and Mineral Resources will improve the competence of ASN, industrial education and training in the ESDM sector, the implementation of higher education in Energy and Mineral Resources (PEM Bandung and Akamigas Cepu), community training in the field of Energy and Mineral Resources, and certification of competence for technical personnel in the Energy and Mineral Resources sector," he said.