Factsheet: Presidential Regulation on National Energy Policy

Energy policy objectives are based on the Presidential Decree No. 5 of 2006 on National Energy Policy and its Blueprint of National Energy Management 2005-2025 (Pengelolaan Energi Nasional - PEN). The recent enacted Energy Law No. 30 of August 2007 creates a National Energy Council chaired by the President with the authority to design and formulate energy policy on behalf of the GOI; the policy then must be endorsed by Parliament. This is a recent development and has not as yet introduced any change in the content of energy policy. The objectives of the present energy policy are, by 2025: 1) To reduce significantly the use of oil to below 20%; 2) To increase the use of : •coal from 15.7% to more than 33%; •liquefied coal to more than 2%; •natural gas from 23% to more than 30%; •geothermal from 1.9% to more than 5%; •biofuel to more than 5%; •other renewable energy (RE) from 0.5% to more than 5%; 3) To reduce energy elasticity to below 1; and 4) To improve energy infrastructure. The main programmes envisaged to achieve these targets are all supply-side, namely: •increasing oil production by optimisation of existing fields, enhanced oil recovery, and offering new acreages; •development of 10 000 MW of coal fired power plant by 2009; •development of bio-energy and opening 6 million hectares of new planta.