Prabowo-Sandi Strategy Presses Oil and Gas Lack

Rakyat Press. The National Winning Body (BPN) Prabowo Subianto - Sandiaga Uno claimed to have formulated a number of strategies to reduce the oil and gas (oil and gas) trade deficit being experienced by Indonesia. The strategy includes the conversion of fuel oil (BBM) to gas for vehicles and the development of biofuels.

"We realize, not all cars are designed for biofuels. Therefore, our second strategy is that we want to do energy conversion," said Harryadin Mahardika, Economic, Research and Development Team of the National Winning Body in Foreign Media Briefing in Prabowo-Sandi Media Center, Jakarta (Friday 11/1).

This strategy, continued Harryadin, is similar to the strategy of converting kerosene to gas stoves carried out in the era of Soesilo Bambang Yudhoyono and Jusuf Kalla. Incentives for converter installation are given to all vehicles, both private, public and productive vehicles.

"This converter for dual fuel can be gas and gasoline, gasoline and biofuel or even three (gasoline, gas and biofuel)," he said.

For productive vehicles, the government can subsidize the purchase of a gas converter whose price is called Harryadin ranging from Rp2 million to Rp.3 million per unit.

Meanwhile, for private vehicles, the government can subsidize in part because the government can involve the role of the private sector or State-Owned Enterprises (BUMN). The form of the subsidy can be in the form of a portion of the initial installation fee or a maintenance fee subsidy.

"For example Shell, if the converter is not paid first, they (users) can pay in installments (payment of converters) but buy gas at Shell because the converter can only be filled with gas at Shell," he said.

The estimated total subsidy needed is not mentioned by Harryadin.

For the long term, Harryadin hopes that this policy will bring about changes in people's behavior. In this case, the people will choose the cheapest fuel.

"We hope that he (consumers) will choose gas more because of cheap gas, for example or prefer biofuel because we can produce it ourselves," he said.

Develop Biofuel

In addition to encouraging vehicle fuel conversion, Harriyadin said Prabowo-Sandiaga also wanted to optimize the use of biofuels (biofuel) could be a solution to suppress the widening oil and gas balance deficit.

In contrast to the government of Joko Widodo which relies on oil palm, his team will diversify by utilizing seven other plants including sugar palm, cassava, and lamtoro.

"We see that palm oil as a commodity has its own tariff power. That is, if it is exported it is more profitable so that it can be processed into biofuels, which may be less attractive to its own palm oil producers," he explained.

The plants will be planted on land which has been neglected by utilizing local farmers. Harryadin said that around 10 million hectares (ha) could be immediately used for cultivation. The land is mostly spread in Sumatra and Kalimantan.

Meanwhile, based on the mapping of the Ministry of Agriculture (Ministry of Agriculture) in 2018, Indonesia has the potential for idle land to reach 33.4 million ha, but not all can be directly utilized.

Harryadin said the pilot project had been carried out on a 100,000 ha area in Kalimantan by Hashim Djojohadikusumo, Prabowo Subianto's younger brother.


If elected, Prabowo will start with 2 million ha using a scheme of cooperation between the government, the private sector from land concession holders and those who have funds, and the surrounding community (public private people partnership / PPPP).

"We don't want it to only be managed by corporations but there are farmers there so there is land distribution," he said.

Furthermore, biofuel factories or refineries will also be made with the PPPP scheme.

The biofuel diversification program has actually been programmed by the government of Joko Widodo with the publication of ESDM Ministerial Regulation Number 12 of 2015 concerning Provision, Utilization and Trading of Biofuel as another fuel.

In the regulation, the government mandates the use of bioethanol for micro-enterprises, fisheries, agriculture, transportation and public services (PSO) in 2 percent of total needs and will increase by 5 percent in 2020 and increase to 20 percent in January 2025.


However, until now, the implementation of the policy did not work. On several occasions, ESDM Minister Ignasius Jonan argued that the policy was constrained by the supply of sources of biofuels which were also needed for food.

According to Harryadin, the scheme failed because the government relied too heavily on the role of the private sector. In fact, to encourage government biofuels to be more proactive in creating ecosystems in the form of plant land, plant supplies, processing plants, markets, and funding.

In addition, according to Harryadin, fears will disrupt food prices because rising demand can be controlled if the government regulates the ecosystem. In this case, for example, farmers who can only supply crops are farmers who are already in the PPPP ecosystem.

"Unless we see that the food supply has been oversupplied, we will absorb it too," he said.

Based on the latest data from the Central Statistics Agency (BPS), Indonesia's oil and gas deficit during the period January-November 2018 reached US $ 12.6 billion or already above the accumulated deficit in 2017 of US $ 8.6 billion.

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