RMOL. A number of homework has been awaiting ESDM Minister Arcandra Tahar, who has just replaced Sudirman Said. The Civil Society Coalition of Publish What You Pay (PWYP) Indonesia said, the new minister must continue the ongoing reform of energy sector governance and should not stop in just one sector.

PWYP Indonesia Coordinator, Maryati Abdullah, said governance reforms in all sectors under the Ministry of Energy and Mineral Resources must continue. The rearrangement in the oil and gas, mineral, and energy sectors that have been on the track in the era of Minister Sudirman Said must be continued.

“The energy sector is very vulnerable to corruption and irregularities in authority. Reforms that have been carried out in the previous era must not stop. We hope that there will be no more officials in the ESDM sector who are indicated as corruption, “she said yesterday.

Maryati explained, the Ministry of Energy and Mineral Resources during the last three years had carried out strategic cooperation with the Corruption Eradication Commission (KPK) in the Coordination and Supervision Program (Korsup).

Starting in 2013/2014 with Korsup Minerba, until now it has been expanded to become Korsup Energy, which includes the oil and gas sector, mineral and coal, electricity, and renewable energy. “Efforts to prevent corruption and restructuring this sector must continue, so that governance reforms that show a perfect outcome,” she said.

PWYP Indonesia Communications Manager, Agung Budiono, said that the parties highlighted the matter of Minister Arcandra’s speech after yesterday’s inauguration, which was still dominant in highlighting the Oil and Gas sector.

Even though there are the Minerba, electricity, and renewable energy sectors which must become a strategic priority for improving governance in the energy sector and mineral resources as a whole.

“The Minister of Energy and Mineral Resources should pay the same attention to portions. We understand that Minister Acandra’s background is quite strong in the oil and gas sector, but we hope that other sectors should not be nominated, everyone needs to be structured, because all the energy and mineral resources sectors are interrelated with one another, “he said.

PWYP Indonesia noted a number of homework in the four main sectors of the Ministry of Energy and Mineral Resources. For example, structuring mining business licenses (IUP). This must be in line and integrated with the Clean and Clear (CnC) certification process, one map policy, improvement of the state revenue system, implementation of licensing services with a one-stop integrated system (PTSP).

“Where the policy to improve the system has also been announced by the president some time ago through the issuance of a Presidential Regulation,” said Agung.

The Ministry of Energy and Mineral Resources must also continue the policy of increasing value-added (downstreaming), through monitoring the smelter construction targets in processing and refining obligations, regulating mechanisms and implementing export licenses, as well as setting tariffs and export taxes on processed/refined materials.

In addition, the completion of the Contract of Work and PKP2B renegotiation process, as an adjustment step to the implementation of Law no. 4 of 2009 concerning Mineral and Coal Mining related to the obligations of smelter construction, state revenue, spatial and land/forest use, as well as several other aspects.

In the Oil and Gas (Migas) sector, the Ministry of Energy and Mineral Resources must oversee increased exploration and reserve strategies, efficiency and cost recovery supervision, optimization and modernization of technology to increase production.

Likewise, transparency and accountability of the state-owned oil and gas transportation and sales system (government entitlement), calculation of PNBP and regional revenue-sharing funds, regional involvement, and participation of regional capital (participating interest) in oil and gas management.

“The Ministry of Energy and Mineral Resources must also make policies and strategies to reserve energy sources, stock security, strategies to meet energy needs, energy efficiency and independence, a realization of refinery development policies, and follow up on energy security fund policies,” Agung said.

In terms of developing new renewable energy, the government is asked to issue policies and real support in determining prices and market access, supporting technology and infrastructure development, supporting investment incentives, strengthening community participation and regional governments, and policy consistency and supervision of the supply-demand chain of new renewable energy.

Previously, the new Minister of Energy and Mineral Resources, Arcandra Tahar, said it was important for the government to provide certainty to investors, including Freeport. ***

News source: here.