Bali, 10 Juni 2015
Assalamualaikum Warohmatullohi Wabarokatuh
Ladies and Gentlement,
I am honoured to address this meeting which is dealing with key issues shared by organization and governments dealing with major of energy security. Here, I would like to thank first of all the ISES committee for inviting me to participate in this event, also I would like to thank the participants who had been present at this event.
On the occasion, please let me share my opinion on issues of energy and the role of science and technology in the context of energy security. As we all know that energy is one of the most strategic components for a state, since it determines the conditions of competitiveness, security, progress and sustainability of a nation. In the context of the strategic environment, both global and national levels, energy issues occupy a major position which determines the dynamics that occur. Indonesia as the biggest country in Southeast Asia certainly have interests to be able to meet the energy needs for national development, both now and in the future. Reduction in non-renewable energy reserves and the demand for renewable energy alternatives is an important moment to conduct a comprehensive study of the nature of the condition to be faced by Indonesia in the future.
Over the last few years the growth of Indonesia’s energy reach 7-8 percent per year. This growth is higher than Indonesia’s economic growth in the range of 5-6 percent. Nevertheless, the high elasticity of Indonesian energy is in the range of 1.6, reflecting the inefficient use of energy in Indonesia. By comparison, Thailand and Singapore have the energy elasticity of 1.4 and 1.1. While developed countries such as Japan and the United States have the elasticity of energy that ranges between 0.1 and 0.2. However, high energy growth is not well supported with good energy supply policy. Data indicate that the oil is still the energy commodities with the largest share, which reached 49.7 percent, while the next largest share of Coal and Gas. This indicates very high Indonesia’s dependence on fossil energy, which reached 95 percent.
Currently, Indonesia has been unable to rely more on conventional energy sources alone. Oil, gas, and coal is predicted to run out in a fairly short time, not more than 50 years. The energy crisis that has ever happened on a global scale in the 70s could be repeated again and even greater impact on countries like Indonesia. Related to this, the issue of energy security Indonesia 2015 – 2025 become a crucial issue to be addressed immediately. In this context the Government and all components must work together in addressing strategic issues such as the threat of an energy crisis that may be faced by this nation. One of the roles of the Ministry of Research, Technology and Higher Education is to contribute to the formulation of national research governance policies, including the policy on the field of energy research. Momentum to establish the contribution of science, technology and policies to build national energy security is urgent, in which one of the main considerations is the projection that in 2025 the Indonesian people will experience an energy crisis if it does not conduct appropriate national policies and effective. The national policy is not only related to the exploration and exploitation practices of non-renewable energy sources or conventional, but also in finding, managing, and using renewable energy.
Challenges for national energy security in the future include an energy policy that does not run optimally, overlapping regulations, the ability of the national industry is not adequate, as well as security of supply is depleted. In addition, other problems such as the threat of oil mafia, higher import dependence, as well as the intervention of the interests of foreign countries should be taken into account will also have an impact on the vulnerability of Indonesia’s energy security.
The Government of the Republic of Indonesia under President Joko Widodo was determined to restore energy independence. Independence is one of the main requirements needed for energy security of Indonesia 2015 – 2025 occurred. In order to accelerate the manifestation, is very important for stakeholders and other national components to have adequate knowledge and understanding of the complexities related to energy problems faced by Indonesia.
We realize that to date the resources of science and technology for the development of the energy sector in Indonesia is still very limited, both in the context of human resources in science and technology, research and development infrastructure facilities and industrial institutions interested in undertaking R & D activities. So on this occasion we were very welcome on the activities and programs that initiated by ISES, especially in order to educate, inspire and motivate students in the field of energy in order to transform the changes towards a better life.
Observing the top three work focus of ISES, we found that agenda is very relevant to us, particularly in relation to technology and innovation. Therefore, we as the Government is very welcome if ISES communities in Indonesia and around the world to contribute to the development of Indonesia’s national energy security.
Lastly, I congratulate and success to all of you in conducting this conference, and thank you very much for your attention.
Wassalamualaikum warahmatullahi wabarakatuh.
The Minister For Research and Technology
and Higher Education Republic of Indonesia