Full name of Instrument & Measure (English):
Presidential Regulation on National Energy Policy (No. 5/2006)
Description:
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.
Goal/Aim:
Increase the share of renewable energy in electricity production.
Responsible Authority:
The Ministry of Energy and Mineral Resources (MEMR)