Indonesian Minister of Energy Issues Regulations on Energy Crisis and Emergencies

JAKARTADAILY.ID – The Government of Indonesia through the Minister of Energy and Mineral Resources issued Minister of Energy and Mineral Resources Regulation Number 12 of 2022 concerning Regulations for Implementing Presidential Regulation Number 41 of 2016 concerning Procedures for Determining and Mitigating Energy Crisis and/or Energy Emergency.

Secretary General of the National Energy Council (DEN) Djoko Siswanto said, based on this regulation, determination and management of energy crises and/or energy emergencies is carried out on types of energy that are used for the public interest as national end users, namely fuel, electric power, LPG, and natural gas.

"Regarding BBM, we know that for now, we are still importing, in fact, the figure is already more than 50 percent. Then LPG, whose import rate is almost 80 percent, then natural gas is still sufficient and its utilization is increasing from year to year, and finally is electricity, which we are currently monitoring which areas are still on standby for a shortage of electricity," said Djoko in a press release on Friday, November 18, 2022.

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Djoko explained that the energy crisis itself is defined as a condition of an energy shortage, while an energy emergency is a condition where the energy supply is disrupted due to the interruption of facilities and infrastructure. In determining the energy crisis, the government considers minimum operational reserves and minimum needs.

According to Djoko, the determination of an energy emergency crisis was also based on two conditions, namely technical operational conditions and national conditions.

"Operational technical conditions take into account compliance with minimum operational reserves and minimum requirements for each type of energy. National conditions are determined by taking into account if the energy crisis disrupts government functions, social life, and the economy," he said.

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Furthermore, Djoko explained several criteria under which conditions can be determined as an energy crisis, including a minimum operational reserve of fuel for seven days in a fuel trading distribution area, a minimum operational reserve of fuel that is not met and cannot be overcome by a business entity for 30 days, a power outage occurs within three consecutive days and unfulfilled operational reserves of electricity by business entities for the next one year.

For LPG, a crisis can be determined if the LPG operational reserve for three days of stock resilience in the distribution area cannot be fulfilled and the minimum operational reserve for LPG is not met and cannot be overcome for more than 30 days in the future.

Furthermore, pure gas can be declared a crisis if the customer's needs are less than 70 percent of the fulfillment the needs and the fulfillment of the customer's minimum needs is not fulfilled and overcome for more than six months ahead.

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In order to anticipate potential energy crises and/or energy emergencies, Permen ESDM No. 12/2022 also mandates the identification and monitoring of conditions for supply and demand for energy by the Director General, Secretary General of DEN, and Head of Downstream Oil and Gas Regulatory Agency (BPH Migas) in accordance with their authority, as well as heads of Business Entities.

This identification and monitoring include the identification of energy supply and demand in all business areas, collection of energy infrastructure spatial map data, and preparation of plans for countermeasures for energy crises and/or energy emergencies which are carried out in a coordinated manner.