ITB General Discussion: Study on Fossil Fuel Subsidy Limitation
The subsidy limitation on fossil fuel policy which will be implemented by the government become the main topic of the ITB general discussion. The discussion became the pre-event of National Student Energy Conference (KENMI) 2011. By inviting Kurtubi, national oil and gas observer, ITB students from various major and rediscuss the Oil and Gas Regulation no. 22/2001 in Room 26, West Campus Center, ITB on Friday (04/02/11).
The discussion explained on one of the government policy on the shift of premium usage to pertamax. Kurtubi explained that the policy is wrong because the oil usage replaced by unvisionary oil should be replaced by non-oil. Despite of that, the BBM subsidy limitation will be implementen on next July will be hard to controlled, whether because of the buying of fossil fuel and it will give the most benefit to foreign gas station.
Bad Oil and Gas Investment in Indonesia
According to Fraser Institute Canada, Indonesia is one of the country with worst oil and gas investment condition. Indonesia ranked 111 out of 133 countries on that field. Indonesia even ranked lower than Malaysia, Philipines, Papua Nugini, and just slightly higher than Timor Leste. This is also became a shame for the country since Indonesia has abundant of oil and gas resources. The other thing that should be concerned is the oil exploration leakage from year to year, without the presence of reserve. To become a country with good investment condition, it is expected that there is new reserve according to the consumption amount that year.
The other factor that caused the bad condition of oil and gas investment in Indonesia is corruption, data access limitation, and certain aspects that is broke by law no.22/2001 and thus it makes the investment process become very long. Kurtubi also stated that the Indonesia investment management should be done with the Business to Business method, while the current management based on Business to Government method which worsens the investor whether to invest in foreign country or to invest in Indonesia oil and gas sector.
Student Should Take Action
Oil and gas in a 9,1 billion barrel reserve in the form of natural resource of 86,9 billion barrel is kept in Indonesia. Despite of that, there is 120 oil reservoirs which have huge potency to be explored as energy resource. To implement this, experts are needed to manage resources from investor, government, and students who will become oil and gas expert. ITB students are expected to bring a better change in terms of technology and regulation to improve energy movement system in the country.
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