Indonesia: New innovation needed to meet fuel demand amid resource scarcity

Indonesia: New innovation needed to meet fuel demand amid resource scarcity

President Joko "Jokowi" Widodo urged on Thursday policymakers to immediately
seek new innovation to address Indonesia's skyrocketing fuel demand amid a
continuous decrease in domestic supply.

"Up to 50 percent of fuel consumed is produced in the country, while we
remain dependent on imports for the remaining 50 percent. I feel this is a
very dangerous situation for us to be in the future, especially if we cannot
come up with new research or new innovation to fully ensure energy
security," he said during the opening of the fourth National Energy Board
(DEN) meeting.

BMI Research, a unit of Fitch Group, has predicted fuel demand will rise to
2.28 million barrels of oil per day (bopd) by 2025 from the current 1.78
million bopd.

Although state-owned oil and gas firm Pertamina has set a target to build
and upgrade existing refineries to increase its production capacity to 2.6
million bopd by 2030, BMI Research still holds firm that fuel imports will
skyrocket to 1.4 million bopd in 2025 from the current 941,000 bopd.

President Jokowi said Indonesia should take advantage of renewable energy,
such as from crude palm oil (CPO), of which Indonesia is the world's biggest
producer.

He also suggested further studies on capitalizing biomass and coal.

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Link to Original Article:
http://www.thejakartapost.com/news/2017/01/05/new-innovation-needed-to-meet-
fuel-demand-amid-resource-scarcity.html

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John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com