President Jokowi Wants Pertamina Oil Imports To Drop

President Joko Widodo (Photo: RI Cabinet Secretariat)

JAKARTA - President Joko Widodo (Jokowi) said that the government has a big goal to provide a surplus to Indonesia's balance of payments, which for decades has been constrained by high oil imports.

Therefore, the President encourages the use of electric cars and electric stoves to reduce the need for oil and gas.

"If we can switch it to other energies, for example all cars are replaced with electricity, all household gas is replaced with electricity, because at PLN over supply (excess supply) means that the supply from PLN is absorbed, oil imports at Pertamina will fall," said President Jokowi. in his directive to the Commissioners and Directors of Pertamina and PLN, at the Bogor Presidential Palace, West Java, Tuesday, November 16, according to a video uploaded to the Presidential Secretariat Youtube channel, reported by Antara, Saturday, November 20.

By optimizing the use of electricity from PT PLN (Persero), the problem of excess electricity supply by PLN can be overcome, while also reducing oil imports by PT Pertamina (Persero).

If oil imports are successfully reduced, he continued, it will have a positive impact on Indonesia's current account balance and balance of payments.

"The big goal (objective) is that this country will benefit in the form of our balance of payments which we have not been able to solve for decades, because the problem is that our oil imports are too big," said President Jokowi.

The decline in oil imports will also allow Pertamina to reduce the need for US dollars in the financial market so that it will strengthen the rupiah exchange rate. If the rupiah exchange rate strengthens due to continued decline in imports, the Indonesian economy will fundamentally be more resilient and competitive.

"(It affects) our dollar exchange rate because every month Pertamina has to provide purchases of US dollars in the market in not small, very large amounts," he said.

President Jokowi also asked PLN to prepare for energy transition from fossil resources to environmentally friendly resources (green economy).

"This can be done immediately, there is a target for example 2022 because (2021) is only a month away. For example (2022) 5,000 megawatts must be shifted from coal (coal) to hydropower, geothermal, solar panels, please, but it has to be there. stages like that," said President Jokowi.

The President emphasized that the transition from fossil energy to green energy is a must that must be carried out by all parties, including state-owned energy companies such as PLN and Pertamina.

"Indeed, it is for the better interest, for our children and grandchildren. So like it or not, the transition from energy to green energy must be done. It is no longer a bargaining chip," said President Jokowi.