To make the industrial have strong competitiveness, the government encourage more production of supporting components oil and gas sector. Moreover, it is also supported by domestic production capability that is able to meet the minimum product specifications.
When speaking to a member of the National Energy Board (DEN) in Batam, Riau Islands, Minister of Industry, Saleh Husin, suggested that the industrial sector is the largest energy user, namely 49.4% of national energy consumption. With industrial growth targets that contribute 30% to national GDP in 2025, it is believed that the need for energy will continue to grow.
Based on data of the Ministry of Industry, there are 2,883 domestic companies who are active in this sector, consisting of 749 companies in the field of drilling services, inspection and transportation, 2,000 companies engaged in oil and gas operations consulting services, and 134 companies in the manufacturing of goods and oil & gas supporting equipment, such as pipelines, rigs, OCTG and other handling equipment.
However, oil & gas supporting industry is also facing heavy challenges, among others, most of the raw materials depend on imports, incomplete structure of industry, flood of imported goods, the commitment to use domestic products, and the implementation of ASEAN Economic Community by 2015, which resulted in free movement of trade, service, and human resources.
Ministry of Industry, Saleh, expects that oil and gas supporting industry can be a precursor to Increase of Use of Domestic Products (P3DN) in line with the mandate of Law No. 3/2014 on Industry, especially Articles 85-90. According to expert staff of the Minister of Industry for Marketing and Increase of Use of Domestic Products, Ferry Yahya, P3DN is applied in almost all countries in the world. In general, P3DN becomes a reference in government goods and services procurement. Therefore, the government issued Presidential Instruction No. 2/2009 on the Use of Domestic Production in Government Goods and Services Procurenment.
In addition to maximizing the use of local products and to provide price preference for product which Level of Domestic Content (TKDN) reaches 40%, a price preference up to 15% is given. In the working visit, Minister of Industry, Saleh Husin, visited seamless pipe manufacturer PT Citra Tubindo Tbk, manufacturer and supplier of steel tubes and services for energy industry and other industrial and other industrial applications Tenaris, and steel pipe manufacturer PT Pipa Mas Putih.
One of the problems faced by the industry is energy crisis. so one thing concerned by DEN is the national energy policy, so to prevent energy crisis in the next 10 years, a national energy vision 2015 has been prepared, although DEN is not able to anticipate energy crisis which is expected to last 5-10 years from now, said Sonny Keraf, member of DEN. Moreover, energy has come a basic necessity in industrial development.
As an illustration, according to Expert Staff of the Minister of Industry for Strengthening of Industrial Structure, Achidiat Atmawinata, the largest energy requirement for the industrial sector is natural gas, which in 2025 will reach 1,360 million British Thermal Units (MMBTU), or 51.2 percent of total energy consumption by the industrial sector. “After natural gas, the largest energy requirement for the industrial sector is coal with a share of 20.3 percent or 26.68 million tons in 2025.
With the acceleration scenario, energy requirements for the industrial sector in 2025 will increase around 55 percent of total energy needs. In that year, the industry will need 1,553 million MMBTU of natural gas and 53.71 million tons coal. However, the energy requirements will decrease if all parties can run energy efficiency programs. In the acceleration scenario coupled with energy efficiency, average energy requirements decreased 8.6 percent. In 2025, natural gas demand is predicted to reach 1,491 million MMBTU, while coal demand 33.89 million tons. (E)
Business News - December 10, 2015