Senin, 26 November 2012

Difficulties of Reducing Consumption Subsidized Oil





The community is still wasteful use of subsidized fuel. This is very serious problem for Indonesian government.   Reports from the Ministry of Energy, BPH Migas and Pertamina show, quota of subsidized fuel discharged December 22, 2012.

The quota increased from 40 million kiloliters (KL) to 44.04 million KL for availability until December 31, 2012. If discharged on December 22, there is a shortage of subsidized fuel for eight days this year.

Subsidized fuel is a strategic issue for Indonesia. That not only affects the economic but also political and security issues. Pertamina, state owned institution attempt to control quotas in some areas di Indonesia actually cause panic. As a result, the public buy out of control subsidized fuel at the pump for fear of running out. The panic occurred in various areas such as Batam, Kuala Pinang, the Pacific Islands, and Jambi.

Government was thinking of the right options to control the consumption of subsidized fuel. Government launched several ideas such as the reduction of the supply of subsidized fuel bit by bit in order to public switch to non-subsidized fuel. In practice, people thought there was a shortage of fuel and causing long lines at the pump.

Other ideas, Pertamina planned program one day without subsidized fuel on December 2, 2012, in Java, Bali and other major cities. The program called the National Movement for Free Day Subsidized Premium. Five cities that do not serve the subsidized fuel sales are Medan, Batam, Palembang, Balikpapan and Makassar. The program will save money Rp 75 billion.

Tota fuel and electricity subsidies estimated at Rp305, 9 billion by the end of this year. This is the big money for Indonesian government, which should build infrastructure project for inviting foreign investors more and more.

However, a good program can often not well implemented in the field. This occurs because of inadequate socialization. Many people do not know that Pertamina control subsidized fuel at some petrol stations.

Without explanation means, people will panic when they could not find subsidized fuel at the pump. The panic will be seen from the length queue in pump stations, they regard subsidized fuel has run out.

Program of one day without fuel subsidy December 2 will also require good socialization. Behavior toward the plan may not be as expected. For example, people might just buy oil   a day before 2 December, and that could affect the line at the pump.

Many ideas launched with not good preparations. Call it the plan prohibits luxury cars using subsidized fuel. Other plans, the whole car black plate premium prohibited using subsidized oil.  Solving this problem is not very easy for Indonesian government that has policy of subsidized oil for many years.
 

Selasa, 20 November 2012

Why Oil and Gas Very Important for Indonesia





The decision of the Constitutional Court declared the Executive Agency for Upstream Oil and Gas (BP Migas) has disbanded. Aftermath of the decision on Tuesday (13/11), oil and gas operations ceased 48 hours or two days and two nights. Cessation of upstream oil and gas operations to cost around Rp1 trillion.

The government acted quickly, establishing successor agency BP Migas.  Indonesian government deserves appreciation for acting quickly so the loss was not greater. The government then formed the Task Force The Oil and Gas Upstream Executing (SKSP Migas) under the Ministry of Energy.  If the investment climate is not maintained, it is feared they will think twice to invest in Indonesia.

Investment in oil and gas is relatively good. In 2010, the realization of upstream oil and gas investment reaches US $ 11.03 billion.  In 2011, realization increased of 23 per cent to US$ 13.59 billion. At this year's target will go up to US$ 15.8 billion. 2013 oil and gas investment target of US$ 17 billion.

Oil and gas sector remains one of the main state revenues. According to official data of BP Migas (before dissolved), in 2010, oil and gas revenues accounted for US$ 26.49 billion. The number is higher than the target of US$ 26.06 billion.

In 2011, revenues increased to US$ 35.79 billion, or 10 percent higher than the budget target of 2011. Budget 2012, established oil and gas revenues of US$ 33.485 billion. BP Migas predicted year 2012 revenues from oil and gas will reach US$ 34.96 billion. Government targets state revenues from oil and gas sector in 2013 reached US$ 31.75 billion. Over the last ten years, revenues from oil and gas targets are always reached.

Of course, all departments and agencies need to work hard to convince investors that the oil and gas investment climate remains conducive. Long-term National Energy Policy said in 2025 the use of petroleum in 2025 is estimated at 1.34 million BPOD, while for natural gas of 11.2 BSCFD.

The Government has made a strategy for achieving the projected oil and gas production in accordance with the national energy needs by 2025. Various programs have been designed as increased activity of G & G and General Survey in an open area, offers a new working area, the optimization of exploration and exploitation PSC commitments, accelerate the approval process POD, WP & B, AFE and Procurement Operations.

There is also a program optimization of existing production fields and accelerate the production of new fields, re-opening the field / old wells and increasing marginal field development, and the coordination and synchronization of regulations with related agencies such as the Forestry Department, Ministry of Finance, Ministry of Environment and Local Government. The number of parties involved, requires cooperation and better coordination. Rihad Wiranto