The industrial sector requires the support of sustainable energy supply. (Photo:
The industrial sector requires the support of sustainable energy supply. (Photo:

Sustainable Energy Supply Supports Industrial Competitiveness in Indonesia

Antara • 05 July 2022 16:54
Jakarta: The Indonesian Ministry of Industry strives to continually spur the productivity and competitiveness of the national industry by providing support for the availability and supply of sustainable energy.
"In order to boost its performance, the industrial sector requires the support of sustainable energy supply, considering that the industrial sector absorbs up to 40 percent of the total national energy needs, and it is the largest after the transportation sector," Industry Minister Agus Gumiwang Kartasasmita noted in a written statement here on Tuesday.
The minister conveyed the statement at a joint working meeting between the Ministry of Industry and the Ministry of Energy and Mineral Resources (ESDM) in Bogor,on Monday. Kartasasmita said the unstable global geopolitical conditions, triggered by the war between Russia and Ukraine, caused international energy commodity prices to rise and disrupt the market.

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The minister noted that this condition had burdened activities in several industrial sectors in the country, given that the composition of raw materials contributed 87.25 percent of the total production costs while the contribution of fuel, electricity, and gas was at 5.87 percent.
In 2019, the industrial sector consumed 389.4 million Barrels of Oil Equivalent (SBM) of energy, with the types of energy comprising coal, gas and electricity, as well as diesel oil and fuel oil.
"Out of the total energy consumption, 85 percent is used for fuel, while the remaining 15 percent is used for the production of raw materials (feedstock)," the minister stated.
Hence, the Ministry of Industry and the Ministry of Energy and Mineral Resources (ESDM) synergize in implementing several programs and policies to increase the competitiveness of the national industry, including by ensuring the supply of energy and raw materials in the industrial sector.
"Several efforts include the use of natural gas as well as ensuring the efficiency and effectiveness of natural gas flow by enacting a policy on certain natural gas prices (HGBT)," the minister expounded.
Minister Kartasasmita stated that the principle in providing energy for the industry is the principle of justice, with no one left behind. Hence, all industrial sectors should benefit equally from the HGBT policy.
Implementation of the green industry program through the establishment of the Energy Professional Certification Institute (LSP) also needs to be pursued apart from providing certified energy auditors and managers as well as encouraging the improvement of the business climate and PLTS Roof investment by industrial businesses.
"The green industry is an easier issue for the two ministries to resolve. Our mission is to encourage products in the industrial sector to become more environmentally friendly products. This is very relevant to what the Ministry of Energy and Mineral Resources has tried, for example, by encouraging (the development of) rooftop solar power plants (PLTS) in industry. This certainly gives efficiency to the industry itself," the minister stated.
The Ministry of Industry also optimizes the program for Increasing the Use of Domestic Products (P3DN) in the ESDM sector that is pursued through support for optimizing the use of domestic products in government spending in the ESDM sector.
The subsequent effort is to accelerate the transition of energy use in the transportation sector, from fuel to electricity, through the development of Battery-Based Electric Motorized Vehicles.
The next step is to provide support for the supply of energy needs in industrial areas by drafting regulations related to industrial areas to encourage the independence of the Industrial Development Center Area (WPPI) and industrial areas to supply energy sources independently.
"The Ministry of Industry and the Ministry of Energy and Mineral Resources are interrelated units in developing the industrial sector, so good synergy, in terms of policies, regulations, and planning between the industrial sector and ESDM, should continue to be built," the minister stated.


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