Energy and Mineral Resources Minister Ignasius Jonan was named as the recipient of the “Top 3 Most Popular Minister” award during the recent Indonesia Corporate Public Relations Awards 2018 held by Warta Indonesia at Balai Kartini in South Jakarta.
The award was given to Minister Ignasius for his tremendous dedication in the nation’s development efforts through the energy and mineral resources sector. Ego Syahrial, the ministry’s secretary general, received the award on the minister’s behalf during the event’s ceremony, held on Aug. 24.
During his two years as the energy and mineral resources minister, Ignasius put into motion a number of important changes in the energy and mineral resources sector to help realize the nation’s goal of sovereignty and independence in energy.
First among these actions was returning the operation of the Mahakam oil and gas block to the hands of the nation through PT Pertamina, after it was managed for more than 50 years by Total EP.
“Pertamina and the local governments must control a minimum of 61 percent of shares. This is important in order to boost the nation’s income,” Ignasius said.
Another major accomplishment also involves Pertamina, which is set to take over the operation of the Rokan Block from Chevron. It is estimated that this oil block will account for 26 percent of the nation’s oil production by 2021. This change will help increase Pertamina’s contribution to the country’s oil production to 60 percent.
The third major action by Ignasius was the introduction of the single gasoline price (BBM Satu Harga) policy, with a special focus on “3T regions” (the frontier, outermost and remote regions). Up to now, 71 organizations have been involved in the distribution of the fuel. The government itself aims to have 160 distributors by 2019.
Fourth on the list was increasing the electrification ratio to 97.13 percent by the first semester of 2018 thanks to the distribution of solar-powered energy saving lamps (LTSHE) to regions currently beyond the reach of PLN’s electricity networks.
The fifth notable act by Ignasius was completing PT Freeport Indonesia’s negotiations. The copper and gold mining giant agreed to complete the construction of its smelter within five years. The company has also agreed to its Contract of Work to a Special Mining Business Permit. It has also agreed to divest 51 percent of its shares. Its permit can also be extended if all the necessary requirements are fulfilled.
The sixth of these accomplishments was to help increase the energy and mineral resources sector’s non-tax state revenue (PNBP) in 2017 and the first semester of 2018 well below the initial target. As an example, the PNBP for the first semester of 2018 reached Rp 86.5 trillion (US$5.9 billion), or 72 percent more than the original target.
Seventh was cutting out licenses considered to hamper investment. There have been 186 of these regulations and licenses that have been simplified, comprised of 56 in oil and gas, 96 in minerals and coal, 20 in electricity and 14 in new and renewable energy.
Minister Ignasius expressed his appreciation to Warta Ekonomi for the award.
“This award is truly inspirational and instills a competitive spirit in creating positive information and a good image for the public. Thank you,” Ignasius said, on a separate occasion.