Platform 5: Energy and Natural Resource

As a new party committed to creativity and innovation, PSI is determined to work hard in the energy sector. The toughest challenge in the sector of future energy is how to synchronize the energy needs for industry and drive the economy on the one hand, hand in hand with catastrophic threat of climate change due to policy patterns and wrong energy use on the other.

PSI considers that we have not yet shown a strong and genuine commitment to pursue new strategy in energy sector, which not only able to drive the economy, but also keep us from the threat of climate change disaster.

There are a number of serious problems in the energy field to watch out for, such as the distribution of electricity, energy diversification, energy conservation, research and innovation.

  • Equity of Electricity

Based on Energy Outlook BPPT 2013, our country’s electrification ratio in 2012 was only 75.8%. That is, 24.8% of Indonesia’s population has not enjoyed electricity. Compare with Singapore 100%, Malaysia 99.4%, Philippines 89.7%, and Vietnam 97.6%.

Electricity is a source of economic activity and welfare. PSI will work diligently to achieve electricity’s usage and enjoyment for the people, with more innovative and diverse energy sources.

  • Energy Diversification

Still from Energy Outlook published by BPPT, our production, exploration and energy consumption are generally based on fossil energy. Our energy reserves are still mainly based on coal, gas, and petroleum.  This all non-renewable energy will be consumed. Our coal reserves, for example, will run out after 75 years, our gas will run out after 33 years, and our oil – if not found new reserves – will be consumed within 12 years.

Exploration and innovation from alternative energy sources such as nuclear, solar, water, wind, biomass, and so on, have so far not yet entered into the nation’s serious agenda.

  • Energy Conservation

In addition to not yet seriously diversifying energy sources, we also have not seriously conserve our energy consumption of our fossil energy, which not only burdening our economy but also contribute to the environmental damage.

Still from the Energy Outlook BPPT data, during the period of 2000-2012, total fuel consumption increased from 315 million BOE in 2000 to 398 million BOE in 2012 or an average increase of 1.9% per year.

This continuous increase is also accompanied by a wasteful consumption pattern changes. In 2000, diesel fuel consumption included the largest share (42%) followed by tannish oil (23%), gasoline (23%), fuel oil (10%) and avtur (2%). In 2012 the sequence is changed to gasoline (50%), diesel oil (37%), avtur (7%), kerosene (4%), and fuel oil (2%).

During the period of 2000-2012, transportation sector experienced the largest growth reaching 6.92% per year, followed by commercial sector (4.58%), and industrial sector (2.51%). As for growth in the household sector is only 0.92%, and other sectors decreased by 0.94%. The high rate of growth of energy consumption in the transportation sector is due to the rapid growth of motor vehicles from the period of 2000-2012 which reached about 14.3% per year.

Wastage primarily happened because of the growth in private vehicle. As an example of how wasteful and unbalanced energy use is in this sector, BPPT calculates that in Jakarta the number of private vehicles is 96.5% serving 44% of travel, while the number of public transport is only 3.5% serving 56% of travel (3% Served by train / KRL Jabodetabek).

Waste of energy consumption in the transportation sector in addition to threatening the environment, also continues to undermine foreign exchange reserves. Bank Indonesia’s statistics show the oil and gas trade balance deficit rose to 3.2 billion dollars in the second quarter of 2014, up from a deficit of 2.1 billion dollars in the same period a year earlier.

While the transport sector’s energy source is more than imported, the country is also burdened by the need to issue subsidies. Over the last few years energy subsidies have been increasing steadily. In 2011 the energy subsidy amounted to Rp 195.3 trillion, increasing to Rp 268 trillion in 2013. PSI will work hard to turn the massive energy consumption that is not only wasteful, burdening the country’s finances. The energy use policy in the transport sector should be a serious concern. Import policy which has become the arena of the rent-hunters (mafia oil and gas) must be managed seriously, transparently, and more strictly.

  • Research and Innovation

Diversification and energy conservation requires research and innovation to be fully supported by the state. PSI will strive to ensure that the country do not only supports research and innovation, but also builds its market. PSI will encourage the state to actively engage in more energy-friendly and technology innovations.

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