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News Room

Published on 31-05-2010
Integrated Solutions to Energy Issues

Jakarta, 31 May 2010 - Energy crisis in Indonesia has become more and more of a complex obstacle in Indonesia, one of which being energy subsidization (especially fuel and electricity). On the other hand, the objective of energy subsidization is to benefit the people by providing a more affordable source of energy for daily use. The government has to provide its people with better accessibilities to energy, either in price or the ease of access. However, subsidization has its negative effects.

One of the negative impacts of energy subsidization are it pushes people to spend fossil energy usage more than they should due to its affordable price, without realizing that it was affordable because it was subsidized by the government. Lack of conscience on energy saving will effect to increasing usage of energy thus increasing the level of emission.

Another impact of fossil energy subsidization would be to delay the improvement of renewable resources. One of the typical thought of Indonesian people is how to maximize the use fossil energy to provide the needs of the people, when the energy is still exist in the country. But they fail to realize that one day all renewable resources will be drawn to its critical point or even exhausted. When that happens, it will be way too late.

What more devastating is that the government doesn’t have any subsidization scheme and and other financial incentive to develop renewable resources. As a result, the price of renewable resources energy in Indonesia is more too expensive than fossil energy. Take geothermal energy for example, Indonesia is located in the area with huge geothermal resources, mainly because it was crossed by mountains of the chain pacific. With large geothermal potentials, there are no investment from private company involved. This is due to lack of government assurance that the geothermal energy produced by general electric company will be distributed to downstream sector.

From the afore mention, it is concluded that it is important to educate the society of the importance of energy and the actual cost of energy is in fact higher than what they have paid, therefore it is important to consume energy wisely and efficiently . In constituting energy policy, the government must pay more attention to the issues that may cause disintegrated solutions of energy crisis. The connected issues have to be solved to avoid chain reactions of problems which will be more difficult to solve in the future.

Therefore, it is important to have integrated solutions. To attract the investment on the development of renewable resources energy, intensive from the government is important, such as shortening the long bureaucracy process. Another intensive would be to provide ceiling price and purchasing of geothermal energy from the general electric at a certain price.

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