Gov’t Urges Gas Industry to Improve Competitiveness

Energy and Mineral Resources Minister Ignasius Jonan speaks at the 9th Indogas Conference and Exhibition, at the Plenary Hall JCC, Jakarta, Tuesday (19/2). (Photo by: Energy and Mineral Resources Ministry)

Minister of Energy and Mineral Resources Ignasius Jonan called on gas industry stakeholders to build synergy in order to improve the competitiveness of Indonesia’s gas industry.

“It is time to make decisions since global market starts to adopt new and renewable energy (EBT),” the Minister said in his remarks at the 9^th International Indonesia Gas (Indogas) Conference & Exhibition at the Plenary Hall JCC, Jakarta, on Tuesday (19/2).

Jonan added that gas industry should make a major contribution to catch up with the rapid development of EBT in global market, adding that the significant development and utilization of EBT have occured in developed countries.

“If we take other countries particularly the developed countries as example, the development of new energy in those countries is rapid. When I visited Italy three months ago, I learned that the operation of power plants is fired by crude palm oil,” the Minister said, adding that this is proof of a great challenge for gas industry.

In the next few years, he added, CPO or other renewable energy sources may possibly replace fossil fuel.

“In the future, it is not impossible that CPO or other renewable energy sources can be converted to diesel fuel or gasoil, and this will pose a great challenge for gas industry,” Jonan said.

Therefore, the current biggest challenge for gas industry is to encourage the national gas industry to become more competitive, he said.

“I urge all business players in gas industry in Indonesia to improve competitiveness. We must put an end to the age of high operational cost,” Jonan said, adding that natural gas producers must also start thinking how to survive the current and future situation. According to him, one method that can be taken into account is to shift to petrochemical industry.

“Petrochemical industry originated from fossil fuel is not easy to replace. However, if we can compete and keep encouraging the use of gas for fuel, electricity generation, and transportation, we probably can catch up with other countries,” he said. (Communication Division of Energy and Mineral Resources Ministry/EN)

Translated by : Rany Anjany Subachrum
Edited by : Muhardi
Proofread by : M. Ersan Pamungkas