Government Issues Energy Supporting Presidential Decree

Energy Resilience (esdm)

JAKARTA - The Indonesian government is getting serious in efforts to strengthen national energy security by enacting Presidential Regulation Number 96 of 2024 concerning Energy Supporting Reserves (CPE). Secretary General of the National Energy Council (DEN) Djoko Siswanto said that this CPE Presidential Decree would be a legal umbrella for the government's efforts to build and manage adequate energy reserves. "The goal is to ensure national energy security and provide direction for the Government in implementing the provision of CPE," said Djoko, quoted on Saturday, September 7. Djoko said the government realized the importance of having sufficient energy reserves to deal with risks such as fluctuations in global oil prices, natural disasters, or supply disruptions. Therefore, the government will actively make various efforts to build and manage energy reserves effectively and efficiently through this Presidential Decree. In general, this regulation contains the type, number, time and location of CPE, CPE management, CPE funding as well as CPE guidance and supervision. "CPE arrangements are carried out by the DEN. Meanwhile, the management is the responsibility of the Minister of Energy and Mineral Resources, and can include Business Entities that have business licenses in the energy sector," continued Djoko. Djoko explained that the types of CPE regulated in the Presidential Decree include gasoline, fuel, gasoline, and LPG by considering strategic roles in national consumption and acquisition sources derived from imports. The amount of CPE for gasoline (gasoline) is 9.64 million barrels, Liquefied Petroleum Gas (LPG) is 525.78 thousand metric tons and petroleum in the amount of 10.17 million barrels. "The provision of CPE is carried out in stages until the period of 2035, according to the country's financial capacity," he explained Djoko added that the location of the CPE must meet technical and feasibility requirements. This includes geological, ease of distribution, spatial planning, environment, infrastructure, possible energy and/or emergency energy crises, and other factors. "The determination of the CPE location was decided and determined in the DEN Member Session. The location optimizes the existing energy infrastructure. If it is not sufficient, new infrastructure can be provided," he added. Djoko also explained that the management of CPE includes supply procurement, infrastructure procurement and maintenance, use, and recovery of CPE. Supply procurement can come from CPE produced domestically or imported. "CPE is used in the event of an energy and/or energy emergency crisis. The mechanism refers to Presidential Decree Number 41 of 2016 concerning Procedures for Determination and Combating the Energy Crisis and/or Energy Emergency," added Djoko.

The management of CPE is funded with funds from the APBN and other legitimate sources. The Regulation of the Minister of Energy and Mineral Resources will further regulate the technical implementation of CPE management, coaching, and supervision. "With the issuance of this Presidential Decree, Indonesia is getting closer to the ideals of becoming an independent and sovereign country in the energy sector. The government is committed to continuing to strive to realize strong national energy resilience, for the welfare of the people and the progress of the nation," concluded Djoko.