Yudhoyono calls for strengthening of energy sector

President Susilo Bambang Yudhoyono has called for strengthening of the energy sector to prevent global conditions from affecting domestic energy supply including crude and other commodity price hikes.

The call was made at a press conference after a cabinet meeting on energy here on Tuesday following the improving performance of state-owned companies operating in the energy sector.

"Through hard work, oil lifting of Pertamina (state-owned oil and gas company) has risen to number two out of 21 biggest oil companies in Indonesia. The first position is held by Chevron at 335,000 barrels followed by Pertamina at 132,000 barrles, Total, Conoco Philips and CNOOC. Our hope is Pertamina will be the master in its home country," he said according to Antaranews.com.

With regard to natural gas production President Yudhoyono said that 56 of it was exported while less than that was for domestic consumption.

He said industries needed more gas supply not at 1260 BBTU but it would continue to increase later in line with increasing domestic production.

To assure gas supply in the years to come President Yudhoyono said he had ordered the ministries concerned to assure that the exploration fields now being built could start operating as scheduled.

He said efforts would not only be taken with regard to exploration but also infrastructure development.

President Yudhoyono also said efforts would also be made to assure realization of the projects in East Natuna, Marsela, Tanggung, Cepu and others.

He said the Marsela, Tangguh and Cepu projects are scheduled to operate in 2018 while Cepu is expected to start producing oil in 2014. "By 2018 our energy resilience will be stronger," he said.

President Yudhoyono said the contribution of natural resources to state revenue is still quite high but in the future in line with the improving economic capacity of other sectors and better tax management income from energy and other mineral sectors would be smaller in proportion so that the country would not only depend on the sectors for revenue.

"The contribution of the energy and mineral resource sector to state revenues is still high reaching Rp352 trillion. This year it reaches Rp388 trillion or almost Rp400 trillion which is equal to 25 to 30 percent of total state income. In the future in line with the improvement in the service and tax sectors I hope tax contribution would dominate the state income so that we would not rely on oil," he said.

The meeting which was also attended by Vice President Boediono also discussed efforts to adjust fuel subsidy so that it would not burden the state budget and excess could be used for developing other sectors.

It also discussed efforts to optimize production in existing refineries and implementation of the new refinery development plan