REPUBLIKA.CO.ID, JAKARTA -- Energy self-reliance will remain a problem in Indonesia in the years to come due to economic and population growth, a figure in the oil industry, Arifin Panigoro, said here on Saturday.
"National oil production will also be an issue due to depleting reserves," the owner of Medco Group stated at a discussion.
In the next decade, he added, national energy needs will reach an equivalent of 7.7 million barrels of oil a day, including two million barrels of fuel oils.
"However, the estimate is based on programs currently being carried out by the government to develop alternative sources of energy, including geothermal. If the programs fail, fuel oil demand in 2025 could reach three million barrels a day," Panigoro pointed out, adding that in terms of production, the downward trend seemed to be unavoidable.
"In 2014, national oil production reached 764,000 barrels a day. But in 2025, it will only reach 453,000 barrels a day," he remarked.
Panigoro explained that the drop in production would be caused by a number of factors, including oil reserves that were currently at only 3.7 billion barrels a day.
"Unfortunately, efforts to increase reserves through exploration are now declining due to a drop in the world oil price and high cost of investment, especially for exploration in eastern Indonesian regions and deepwater exploration," he noted.
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