REPUBLIKA.CO.ID, PEKANBARU - The Vice Minister of Energy and Mineral Resources, Widjajono Partowidagdo said it was wrong that Indonesia was rich of oil. "Indonesia is not rich of oil," Partowidagdo said on Saturday in National Seminar in Riau.
He said, there was some misunderstanding over energy resources in Indonesia. Indonesia indeed has many energy resources, but they are in the form of coal, gas, coal bed methane, shale gas, geothermal, water, and vegetable fuel.
Another wrong perception was that the fuel price should be cheap without thinking that it could squander government's fund for fuel subsidy and make continuous Indonesian reliance for fuel and import fuel. According to the data, in 2011 Indonesia produces 902 thousand barrel oil per day, 1.5 million barrel gas, 3.4 barrel coal per day. Indonesia has 18.7 billion gas reserve and 67.8 billion coal reserve.
"As a net importer, it is not wise if we follow cheap price of fuel in oil reserving country," he said.
He urged the government to apply fiscal system for foreign investors to guarantee their profit. Another effort is government should increase the quality of auction and the information of offering working area with better geophysical and geology study to get qualified company.
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