JAKARTA - Vice President Maruf Amin emphasized Indonesia's commitment to contribute to reducing global greenhouse gas emissions will never recede.
"Indonesia's commitment to contribute to reducing global greenhouse gas emissions will not recede," said the Vice President in his remarks at the inauguration of the Jambaran-Tiung Biru National Strategic Project (PSN) (JTB) and the MDH and MDH gas field projects in Surabaya, East Java, Wednesday, February 8.
According to the Vice President, Indonesia continues to take concrete efforts through the implementation of the energy transition by increasing the use of low-energy emissions and renewable energy.
He said that in the midst of the energy transition era, the role of oil and natural gas is still needed to support economic growth, as well as maintain energy resilience and independence, while still paying attention to environmental factors before new and renewable energy is developed massively.
He conveyed that the upstream oil and gas sector still plays a strategic role both for state revenues and as a driver of the national economy. In 2022, upstream oil and gas business activities will contribute more than 42 percent to non-tax state revenue (PNBP) based on natural resources.
The achievement of oil and gas PNBP was even recorded at IDR 148.7 trillion, exceeding the initial target of IDR 139.1 trillion. In contrast to the percentage of utilization of petroleum and coal as energy decreased, the use of natural gas is increasing. Natural gas is the cleanest and most widely used fossil energy after petroleum and coal," said the Vice President.
According to him, this shows the vital role of natural gas both in meeting national energy needs and in the Indonesian energy mix policy.
Therefore, the government continues to encourage the use of domestic natural gas by stimulating domestic industries such as the development of the Jambaran-Tiung Biru Gas Unitation Field and the MDA and MBH Gas Fields, which were inaugurated today.
The vice president said the two gas fields would supply a fairly large gas demand on the island of Java.
"The fulfillment of this gas demand is expected to spur the stretch of the business world which leads to the economic progress of the community at the regional and national levels. The multiplier effect of these two gas fields will be driven by gas supply at PT PLN and various industries around Central Java Province and East Java Province," he said.
He appreciated the success of the construction of the two projects, which were able to increase the national gas supply by 312 million cubic foot standards per day, and contributed state revenues of up to IDR 37.2 trillion during the project.
He requested that the operation of the two projects be carried out properly by paying attention to health, safety, security and the environment, and prioritizing gas supply to meet domestic needs.
As for proving the commitment to reducing global greenhouse gas emissions, the Vice President said Indonesia had increased Indonesia's emission reduction target from 29 percent to 31.8 percent by 2030 with its own capabilities, and 41 percent to 43.20 percent with international support, as well as net zero emissions targets by 2060 or sooner.
The vice president also advised business actors to use low-carbon technology in the oil and gas industry.
He asked SKK oil and gas and Cooperation Contract Contractors (KKKS) to use low-emission technology in their operating activities so that they can contribute to achieving the net zero emission target.
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