BIMASENA INTERNATIONAL ENERGY AND MINING CONFERENCE 2007, INTERNATIONAL ENERGY CONFERENCE 2007, ...
REMARKS
BY
H.E. DR. H. SUSILO BAMBANG YUDHOYONO
PRESIDENT OF THE REPUBLIC OF INDONESIA
AT
BIMASENA INTERNATIONAL ENERGY AND MINING CONFERENCE 2007,
INTERNATIONAL ENERGY CONFERENCE 2007,
AND WORLD RENEWABLE ENERGY REGIONAL CONGRESS 2007
AT JAKARTA CONVENTION CENTER, JAKARTA
5 NOVEMBER 2007
Bismillaahirrahmaanirrahiim,
Excellencies,
Distinguished Participants,
Ladies and Gentlemen,
I am delighted for this opportunity to address the Bimasena International Energy and Mining Conference (BIEM) 2007, the International Energy Conference 2007, and the World Renewable Energy Regional Conference (WRERC) 2007.
Let me also take this opportunity, to congratulate Bimasena, the Mining and Energy Society, on its 10th anniversary and Indonesian Engineers Institute on its 55th year of service to the country. Likewise, I wish to facilitate the Indonesia Renewable Energy Society (METI) on its contributions to the growing use of renewable energy in Indonesia.
We have always wanted to make Indonesia the convention capital of the world. Well, this is the first time I am addressing three conferences in one event, three in one. So, business must be very good for the Convention Industry.
I am especially glad to be here, because with you, I feel very much at ease. I have many friends in the energy and mining sector, as at one time I served as Minister of Mining and Energy. Hence, a gathering like this is some kind of homecoming to me.
You have chosen a very timely and appropriate conference theme: Responding to the Energy Challenges. We are indeed confronted by energy challenges, and they are formidable. And you are the people who can address the most effectively.
One challenge stares us in the face, a surge in the price of oil that has gone through the roof. At US$ 93 per barrel, the price of oil stands higher than it has ever been and threatens to reach the threshold $ 100 per barrel.
This will be hard on the world economy as a whole. The IMF has forecast that next year the growth of the word economy will slow down for 5.2 to 4.8%. This is a warning sign, that is warning sign that cannot be taken lightly.
It means countries that are net importers of oil could suffer a severe constriction of their budgets. To buy the oil that they depend on for energy, they may have to sacrifice their initiatives in social and economic developments. In the process, they may have to lag behind farther from their Millennium Development Goals.
That would be a tragedy for the teeming millions in the developing world while struggling to rise out of the trap of extreme poverty. The axiom goes that poverty anywhere threatens prosperity everywhere.
We do have a long-term answer to this challenge, and that is the development and exploitation of alternative sources of energy, especially those that are friendly to the environment. This includes an array of bio-fuels, hydrogen cars, clean coal, solar energy, and nuclear energy.
But these alternatives take time to develop. They require long gestation period before they can be ready to take over from fossil-based fuels. The situation calls for action, now.
Hence, we are all called upon to enlarge the world’s supply of oil. For that to happen, we must increase and intensify efforts and exploration for and production of oil and gas.
And as we strive to increase the world’s supply of fossil-based fuels, there is another basic social purpose that we must not lose sight of. The social purpose, in fact, constitutes one of the greatest challenges of our time. This is the challenge of mitigating and adapting to climate change.
The preponderance of scientific evidence is such that it has become impossible to deny this reality. As the Inter-Government Panel on Climate Change has conclusively pointed out, human economic activities for two centuries since the launching of the industrial revolution have brought about global warming.
The only question now is, how intense will global warming turn out to be. Whether it will be largely manageable, or it will be monstrously devastating depends on the decisions and actions that we take today.
We must ensure that global temperature will rise only to tolerable levels. A rise of 20 Celsius will already have a severe impact on a considerable part of the human race. But we prudent responses, we can still manage that.
A rise of 50 Celsius, however, will be catastrophic on the planet and all of humanity: thousands of islands, including those that are not so small, may disappear. Vast expanses of coastal areas may vanish. Many species will go extinct, thereby, biologically impoverishing human kind. And there will be new areas of widespread famine and drought.
We all already seeing plenty of warning signs around the world today. The fires in Malibu, in Greece, and Australia. The floods in the UK, China, Mexico, Bangladesh, and here in Jakarta. The prolonged drought in Africa. The heat wave in Europe, and the list goes on. All this is not a temporary natural phenomenon. They are part of the long-term worldwide trend that will only get worse.
The good news is that: there is still a wind of opportunity to slow down, to stop and reverse global warming.
We in Indonesia are doing our share of ensuring it does not happen. We are protecting and rehabilitating our forests, which are the lungs of the world, and our most reliable carbon sinks.
At the same time, we are pursuing a program of sustainable and clean sources of energy. We now have eleven Clean Development Mechanism Projects, dealing in waste management and renewable energy, and we are doing our best to have more of these CDM projects.
We intend to reduce the share of oil in the national energy mix from 52% today to some 20% in 2025. This means a hefty increase in the use not only of natural gas and coal, but also the various forms of renewable energy. Bio-fuels will account for 5% of Indonesia’s total energy consumptions by 2025.
We are weaning our people away from the use of kerosene and shift instead to the cleaner alternative: LPG. In the near future, we expect to see Indonesian households consuming 70% of our total gas production, compared to 46% today.
These efforts represent only one Government’s initiative in one large sector. It is only a small part in the overall struggle for climate stability. Momentous decisions have to be made on a global basis.
Such important decision-making on climate change by the international community will soon take place on Indonesian soil.
As you know, early next month, we’ll be hosting in Bali the 13th Session of the Conference of Parties to the UN Framework Convention on Climate Change and the 3rd Session of the Meeting of Parties to the Kyoto Protocol. What we discuss and decide in Bali will determine the fate of mother earth and the future of the human race.
It is my hope and the world’s hope the Bali Conference will produce a roadmap that will lead to a post-Kyoto climate regime. And it is our hope that this time around, there will be a new global consensus that will bring on board or stakeholders an effective and long-term global partnership to curb global warming.
Excellencies, ladies and gentlemen,
Management gurus advice us to think outside the box. Let us give the advice, that advice, a new meaning and think outside our sector. Indeed, all individuals, communities, and institutions must be involved in the effort to reverse, if that is still possible, and to slow and soften the impact of global greenhouse gas emissions. All of us are called upon to modify the way we use energy in our daily lives. It is therefore fitting that we honor individuals and groups who have made significant contribution in this regard. Let me just cite four of them tonight:
Ms. Rastini of Kemayoran, Jakarta, an advocate and successful practitioner of energy efficiency in her household.
The late Mr. Minto, an elementary school teacher in Madiun, East Java who has invented a drying machine, a multifunction stove and water heater--all using solar energy.
The 500 individuals from the Al Mubaraq Islamic Boarding School who have converted from the use of kerosene to coal briquette and gain 60% in energy efficiency.
And the Kunang-Kunang Club of PT PLN, which is conducting a very effective educational program on energy efficiency for children.
They and others like them are heroes of our time. Because of them, I am exceedingly optimistic that we will succeed in harnessing our best resources and creative energies to the global undertaking for climate stability.
The resources are there. The necessary professional skills are available. And so are the appropriate technologies.
Add to these the political will of government. Plus a keen of social responsibility and corporate citizenship on the part of the private business sector. And a strong civic spirit among individual citizens… and you get a world of clean energy and stable climate. It will be a much better world than we already have.
Excellencies, ladies and gentlemen,
Before I conclude my speech and to officially open this conference, I would like to share with you in this fine occasion my vision and thoughts, and my policies connected to energy development and energy industry that we develop here in this country. I am listening very well to what has been said by Bapak Professor Subroto and Mr. Purnomo and I would like to phrase three points in this fine opportunity, one is related to the ongoing debate on foreign investment, foreign direct investment.
Long-term objective of our development is to increase the welfare of the people, it’s no doubt, it’s quite clear. That’s why our economy must grow. Since we all know that Indonesian economy has been integrated fully to global economy in my own view. International corporation in the economic field is part of our economic development and our national development, in the sense that, that participant corporation is fair, and bringing benefit for both sides. In this connection, we will maintain our partnership and cooperation with our partners.
We invite for the sake of growing our economy, all investors, domestic, as well as foreign, to be part of our economic development. My government is honoring the contract, with hope that the contract must be well implemented in high degree of transparency and accountability, with the hope the existing industries can also contribute to the local communities in the form of local community development. To have a better partnership and cooperation, I do think in renewing the contract or in making new contract, we have to ensure that there will be a greater benefit for the host country, for the people who are living in Indonesia.
There is an opinion that wrong contract will only give unfair opportunity, the investor takes too much, and the local people, the host country, receive too little. Of course we have to avoid this kind of thing, this kind of partnership. And this is the moral obligation for all of us. By saying this, I do hope that we could continue our partnership for our better future, and once again I do hope that in implementing our contract, our agreement, we have to ensure that we’ll bring benefit to our people, especially in Indonesia, that we are now working very hard to reduce poverty to create jobs, to bring more equity to generate local economy across the country.
 That’s my first point, ladies and gentlemen. My second point is the relation between energy and environment. I keep saying that all communities in this country or worldwide must be part of the global commitment and global effort in saving our planet. That’s why, because energy is needed by the world, by nation, by our people, and we have to, on the other hand, preserve our environment.
We have to connect the energy community, the energy industry, and the necessity of preserving our environment. The energy industry can contribute by sharing its technology, the finance, and others to slow down, to control the ongoing global warming, in a tolerable point. And I encourage you all in this conference to discuss further, to discuss more, how could energy community, energy industry, contribute concretely to our global effort in curbing global warming and dealing with climate change.
That’s my second point, my last point is about how should we develop a correct energy policy in the long term. How could we avoid the so-called energy crisis. 6.3 billion people need energy. There must be a limit for energy sources. We have to anticipate that thing in order not to happen, I mean, the crisis of energy.
And the pillars are, in my view, are three. One is correct policy, that’s to be develop by all nations, all governments in the world. Second is technology, technology that can be shared by anybody, by developed countries, by the industries. And the third one is about culture, about human habit, about lifestyle. And we have to conduct a continuous campaign, a national campaign, global campaign on how to use energy efficiently. We have to change. It’s about the values, about the mindset, about the behavior how to develop a culture, a lifestyle that can use energy wisely and efficiently.
Those three things, Excellencies, Ladies and Gentlemen that I’d like to share with you all in this good occasion and I do hope we can work together not only to shape our planet, develop our industry,…and also to develop more green energy and the renewable energy resources.
Finally, by saying bismillaahirrahmaanirrahiim, it is now my pleasure to declare open the Bimasena International Energy and Mining Conference (BIEM) 2007, the International Energy Conference 2007, and the World Renewable Energy Regional Conference (WRERC) 2007.
           Thank you very much.
Biro Naskah dan Penerjemahan
Deputi Mensesneg Bidang Dukungan Kebijakan
Sekretariat Negara RI