Minister Of Energy And Mineral Resources Release Of Energy Crisis Rules

Minister of Energy and Mineral Resources Arifin Tasrif. (Photo: Doc. Antara)

JAKARTA - The government through the Minister of Energy and Mineral Resources (ESDM) has issued a new policy, namely Minister of Energy and Mineral Resources Regulation No. 12 of 2022 concerning Implementing Regulations of Presidential Regulation No.41 of 2016 concerning Procedures for Determining and Combating Energy Crisis and/or Energy Emergency. The Minister, which was signed on October 16, stated that the determination and control of the energy crisis and or energy emergency was carried out on the type of energy used for the public interest as a national end user. The types of energy include fuel oil (BBM), electricity, Liquefied Petroleum Gas (LPG), and natural gas. This regulation also regulates the minimum limit of operational reserves and energy needs used for the public interest, namely fuel oil (BBM), electricity, liquefied petroleum gas (LPG), to natural gas. For fuel oil, the Ministry of Energy and Mineral Resources has set a minimum fuel operational reserve for 7 days of stock security at fuel terminals and refueling stations in one commercial distribution area. Meanwhile, LPG minimum operational reserves are said to be sufficient for 3 days of stock security at the LPG terminal, LPG bulk filling station or LPG bulk filling and transportation station for a distribution area. As for natural gas, the minimum need for Earth Gas customers is the need for Earth Gas customers by 70 percent of the normal needs of Earth Gas customers in an Earth Gas Distribution Area. Furthermore, it is explained in the third part of the Ministerial Regulation, it is stated that the fuel crisis based on operational technical conditions is determined if the fulfillment of minimum fuel operational reserves is expected to be not fulfilled and not be overcome by business entities for the next 30 days. The electricity crisis based on operational technical conditions is determined if there is a blackout in 3 consecutive days due to the reduction in loads which is expected to continue for more than 30 days; and the minimum operational reserves are not met and are not expected to be overcome by the business entity for the next 1 year to meet the supply needs of a local system. Then, the natural gas crisis based on operational technical conditions is determined if the fulfillment of the minimum needs of natural gas customers is expected not to be met and will not be overcome by business entities for the next 6 months. Article 19 of the Ministry of Energy and Mineral Resources also details, the national energy crisis or emergency is determined if it results in disruption of government functions, disruption of people's social lives and disruption of economic activities. "The Energy and/or Energy Emergency Crisis based on national conditions as referred to in Article 19 is determined by the President on the proposal of the Minister based on the recommendations of the Member Session."