ID :
23317
Wed, 10/08/2008 - 21:46
Auther :
Shortlink :
http://m.oananews.org//node/23317
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RI TO REDUCE FUEL OIL IMPORTS : MINISTER
Jakarta, Oct 7 (ANTARA) - Indonesia will reduce its fuel oil imports as part of its efforts to mitigate the impact of the global financial crisis, Energey and Mineral Resources Minister Purnomo Yusgiantoro said here on Wednesday.
He said the government would promote the use of bio-fuels to replace fuel oils. "We will spur the switch from oil to bio fuels through a policy we have just issued to make biofuel use mandatory," he said.
In an effort to reduce fuel oil imports. he said, the government would also maximize production capacity of PT Pertamina oil refineries to meet domestic fuel oil demand.
"By reducing imports, and if oil and gas exports are maintained, income will rise," he said.
He said the global crisis was not affecting the oil and gas sector much in terms of trade or capital flow.
He said oil and gas investment was long term and therefore the crisis, which would likely last only one or two years, would not affect the sector much.
To underline his statement the minister said the government on October 17 would announce the winners of the bid for 30 blocks of oil and gas fields consisting of 22 blocks offered through direct bidding mechanism and eight through regular mechanism.
The government would also announce the winning bidders for two coal bed methane blocks, the minister said.
He said the relevant contracts would be signed in November in conjunction with a meeting of the Association of Indonesian Machinery Engineering Alumni (IATMI).
"So, if we are asked about oil and gas investment opportunities, we will say they remain attractive," he said.
Purnomo said he was optimistic the investment target of US$21 billion until the end of this year would be achieved.
Regarding the electricity sector he said the current global crisis would likely affect power development projects outside Java.
He said however that projects in Java which generally have a large capacity and involved a large capital would not be seriously affected because they have already secured funding committment mostly from China.
Projects outside Java which generally had a small capacity were funded by domestic banks and would therefore be affected by the increasing interest rates.
In view of that "we particularly appealed to the banks that they would not raise the rate for the projects," he said.
The minister said the crisis would also not affect investment projects in the mining sector because their implementation still had to wait for the settlement of the law on mineral resources and coal.
He said the government would promote the use of bio-fuels to replace fuel oils. "We will spur the switch from oil to bio fuels through a policy we have just issued to make biofuel use mandatory," he said.
In an effort to reduce fuel oil imports. he said, the government would also maximize production capacity of PT Pertamina oil refineries to meet domestic fuel oil demand.
"By reducing imports, and if oil and gas exports are maintained, income will rise," he said.
He said the global crisis was not affecting the oil and gas sector much in terms of trade or capital flow.
He said oil and gas investment was long term and therefore the crisis, which would likely last only one or two years, would not affect the sector much.
To underline his statement the minister said the government on October 17 would announce the winners of the bid for 30 blocks of oil and gas fields consisting of 22 blocks offered through direct bidding mechanism and eight through regular mechanism.
The government would also announce the winning bidders for two coal bed methane blocks, the minister said.
He said the relevant contracts would be signed in November in conjunction with a meeting of the Association of Indonesian Machinery Engineering Alumni (IATMI).
"So, if we are asked about oil and gas investment opportunities, we will say they remain attractive," he said.
Purnomo said he was optimistic the investment target of US$21 billion until the end of this year would be achieved.
Regarding the electricity sector he said the current global crisis would likely affect power development projects outside Java.
He said however that projects in Java which generally have a large capacity and involved a large capital would not be seriously affected because they have already secured funding committment mostly from China.
Projects outside Java which generally had a small capacity were funded by domestic banks and would therefore be affected by the increasing interest rates.
In view of that "we particularly appealed to the banks that they would not raise the rate for the projects," he said.
The minister said the crisis would also not affect investment projects in the mining sector because their implementation still had to wait for the settlement of the law on mineral resources and coal.
