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Arcandra Tahar

Investment in Indonesia’s energy sector to rise by 39.2% this year

JAKARTA ( – Deputy Minister for Energy and Mineral Resources Arcandra Tahar said he is upbeat the investment target in energy sector – coal and mineral, electricity, renewable energy and oil and gas – would rise by 39.2% this year to US$37.2 billion from US$26.7 billion last year.

To support the target, the energy ministry has taken a number of measures, including removing regulations and licenses that hinder investment, promoting faster and reliable investment procedures and accelerating strategic decision making.

He said the investment in coal and mineral sector has been set to reach US$6.2 billion this year, up from US$6.1 billion last year, investment in electricity sector is targeted to reach US$2.2 billion, up from US$9.1 billion, investment in oil and gas is targeted to rise to US$16.8 billion from US$10.2 billion, while investment in renewable energy is set at US$2.0 billion, up from US$1.3 billion a year earlier.

“The total investment in coal and mineral sector accounts for 17% of total energy investment,” Arcandra Tahar said at the Coaltrans Conference in Nusa Dua, Bali, today (May 8).

The bulk of investment in oil and gas sector will go to the upstream sector amounting to US$9.33 billion and downstream at US$0.85 billion.

He said coal sector remains an important sector to support the country’s energy mix. “Coal remains important as source of energy until 2050,” Arcandra Tahar said.

He said Indonesia expects to raise coal supply to domestic market, but has no plan to restrict exports of coal. The recent domestic market obligation (DMO) policy is simply aiming at assuring electricity is accessible and affordable to the people. (*)

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