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The Energy and Mineral Resources Ministry (ESDM) has stated that national fuel oil consumption this year is projected to be 75.27 million kiloliters (kl) to include the national consumption of diesel fuel, kerosene, and fuel oil. The government will provide 26.3 million kl of subsidized fuel oil.

Last year’s national fuel oil consumption was only 63.96 million kl, consisting of 14.39 million kl of kerosene and diesel fuel, 8.44 million kl of subsidized Pertamina Premium fuel oil, and 41.13 million kl of non-subsidized fuel oil. This figure excludes the consumption of biodiesel or Fatty Acid Methyl Esters (FAME) of 8.45 million kl. 

 

Source: CNBCIndonesia.com, January 18, 2021: https://www.cnbcindonesia.com/news/20210118145852-4-216880/konsumsi-bbm-ri-di-2021-diperkirakan-naik-ke-7527-juta-kl

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The government is determined to improve the investment climate in the country’s upstream oil and gas sector in a bid to entice fresh investment and boost production. Director General of Oil and Gas at the Ministry of Energy and Mineral Resources Tutuka Ariadji said that the various incentives prepared by the government are expected to help bolster the upstream investment climate. Tutuka said the government is very eager to establish a better oil and gas investment climate and has prepared various kinds of incentives expected to meet the needs of investors.

These incentives include investment credit, accelerated depreciation, attractive tax facilities, value added tax exemption, and a streamlined licensing process. Tutuka also said that the government is open to stakeholders participating in discussing regulations to improve the results, while adding that all these efforts aim to find a win-win solution so that the oil and gas contractors can “invest comfortably” in the country.

He also said that opening up oil and gas data through a membership system is also expected to help accelerate investment in the upstream sector. The government and upstream oil and gas authority SKK Migas have set an ambitious target for the country’s oil and gas production to jump to 1 million bopd and gas output to 12 bscfd by 2030.

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The Malioboro area of Yogyakarta City is officially designated a No Cigarette Area (KTR), in accordance with Regional KTR Regulation 2/2017. Yogyakarta Deputy Mayor Heroe Poerwadi said that due to the pandemic, inauguration of the Malioboro KTR was delayed until Thursday (11/12), from March. They also provided four designated smoking areas in the Abu Bakar Ali parking area, in front of Malioboro Mall, on the north side of Ramayana, and on the third floor of Beringharjo Market.

Smokers who violate the KTR rules can be subject to sanctions in the form of maximum imprisonment of one month and a maximum fine of Rp7.5 million. Heroe hoped the implementation of KTR at Malioboro could be used as a reference for other tourist attractions implementing KTR.

Head of the Malioboro Task Implementing Unit (UPT), Ekwanto hoped that the number of people who damage the KTR facilities that have been provided will decrease, as many smokers had used the drinking water faucet facilities as cigarette ashtrays. Head of the DIY Tourism Office, Singgih Raharjo, also confirmed that many tourists discard their cigarette butts carelessly. He added that initially, KTR were implemented to accommodate all tourists visiting the Malioboro area, both smokers and non-smokers. But over time, the goal of implementing KTR has grown to help reduce the spread of COVID-19.

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The establishment of the tobacco products industrial park (KIHT) received appreciation from local governments of several regions in Indonesia. The KIHT aims to improve the industrial sector while reducing the number of illegal cigarettes in circulation.

Regional Secretary of Jepara Regency, Edy Sujatmiko, welcomed the KIHT program and hoped it could suppress illegal cigarette production in Jepara. As of October 2, Customs and Excise have carried out 41 enforcement measures in Jepara Regency and confiscated more than 5 million cigarettes with potential state losses of Rp3.4 billion.

Central Java and Yogya Customs and Excise Office Head, Padmoyo Tri Wikanto said that the KIHT was an urgent alternative solution to be established immediately in Jepara. The plan to implement a KIHT in Madura by the East Java I and Madura Customs & Excise also received support from the local governments of four districts throughout Madura. Head of the Madura Customs Office, Yanuar Calliandra, said the planned KIHT must be supported by all parties.

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The COVID-19 pandemic has further reduced the total investment in the oil and gas industry in the country, which has been declining for the last few years. The pandemic has also made the future of investment even more bleak, since there are no indications of when it will end. The uncertainty over the COVID-19 situation has compelled investors to withhold their money and assume a wait-and-see position. The upstream oil and gas regulatory agency SKK Migas revealed that, up until September 2020, total investment in the industry had only reached 63.33% of the total target set by the government. That percentage is equal to US$ 7.03 billion out of the target of US$ 11.1 billion. Previously, SKK Migas expected the total investment to reach US$ 13.83 billion. The agency had to reduce that target, following the faltering international oil prices and emergence of the COVID-19 pandemic. SKK Migas said that there are no plans to revise the present targets at present.