REPUBLIKA.CO.ID, JAKARTA -- Executive Director of the International Energy Agency (IEA) Maria van Hoeven has expressed hope that Indonesia will make budget reforms and subsidy allocations to reflect the trends of the global market.
"This should be done as part of the long-term development plan for the integrated natural gas infrastructure," van Hoeven said when she, along with Energy and Mineral Resources Minister Sudirman Said, launched a book titled "The 2015 In-Depth Review of Indonesia's Energy Policies" here on Tuesday.
The book was launched in cooperation with the IEA.
The Ministry of Energy and Mineral Resources has had a good relationship with the agency since 2006 and has participated in various training programs it organized, including workshops, publications, and a high-level meetings.
The IEA executive director further noted that besides developing renewable energy, the government of Indonesia should also improve the predictability and sustainability of the coal mining sector and the development of a more transparent and flexible domestic natural gas market.
"In addition, Indonesia is also expected to establish an independent regulator to monitor and coordinate the downstream sector," she pointed out.
In a review of the book, the IEA found that energy subsidy in Indonesia has become a major challenge this year with regard to developing the sector.
"The government's efforts to eliminate fossil fuel subsidies are a significant progress," she remarked.
According to van Hoeven, these efforts could act as the basis to decreasing the use of fossil fuels and other fuels.
"This is in line with Indonesia's energy policy. The ministry has set a target of ensuring that by 2025, 23 percent of the total energy consumption is renewable energy," she stated.
The IEA is an intergovernmental organization set up by the Organization for Economic Cooperation and Development in 1974, following the oil crisis in 1973 -1974.
The main aim of the agency is to achieve a stable energy supply, with a special focus on the oil market, and to sustain a durable economic growth.
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