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
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