Reduce Dependency On Global Oil Prices, Indonesia Needs Energy Diversification

Illustration (Photo: Doc. Antara)

SOLO - Economist from the Surakarta Muhammadiyah University (UMS) Anton Agus Setyawan said, Indonesia needs to immediately diversify energy to reduce dependence on global oil prices.

"Actually, since 2008 the government has launched an energy conversion master plan, it no longer depends on fossil energy, petroleum and gas," he said, quoted from Antara, Sunday, September 4.

According to him, through efforts to diversify renewable energy, the community will gradually begin to reduce the use of fuel oil (BBM).

"So it doesn't depend on the fluctuations in global oil prices. In addition, when fuel runs out, we are ready with renewable alternative energy, the source in Indonesia is actually a lot. So don't think about it in the short term, but also in the medium and long term, and the government's ability can do that," he said.

Meanwhile, in response to the increase in the price of several types of fuel starting Saturday, September 3, he is worried that the impact will affect the increase in domestic inflation.

He explained, since the beginning of the year until now the inflation rate has continued to show an increase.

In fact, by the end of the year the national inflation rate could reach the range of 6 percent.

"That's if there is no increase in fuel. The biggest contribution from foodstuffs is around 11 percent, if you add fuel, I'm worried that by the end of the year the inflation will break into double digits," he said.

If this condition occurs, he ensures, people's purchasing power will be eroded a lot.

"Not to mention the cumulative price of fuel, especially subsidized diesel because it is used as logistics fuel, of course it will affect commodity prices. The most serious impact is the impact of our annual inflation, later if the government has a target economic growth of 5.43 percent, but double-digit inflation is the same," he said.