Indonesia’s Energy Security Policies for the Prosperity of the People Ida Nurlinda Faculty of Law Universitas Padjadjaran Bandung – Indonesia [email protected] Energy Security a condition in which there is a guarantee for the availability of the energy resources along with the accessibility for the people in affordable price in a long period of time while regarding the aspect of environmental conservation Data from the Ministry of Energy and Mineral Resources Rep of Indonesia (2009) Indonesia’s oil resource potential has been decreased to 9.1 billion barrels; but Significant potential for Indonesia’s non-oil and gas resources, ex: • Coal energy has the potential of 90.5 billion tons • Geothermal as the biggest resources in the world, Indonesia secures 219.00 million SBM Indonesian Oil Resources Indonesian Energy Resources National Energy Policies (Article 1, point 25 Act No. 30, 2007 on Energy) • The existing rule : Presidential Decree No. 5, 2006 on National Energy Policies • The new National Energy Policy (for period of 20142050) have arranged based on Act No. 30, 2007 on Energy; and also have been approved by the parlement on January 28, 2014 but not yet valid, waiting for the President’s approval • In that draft of the presidential degree, set about energy availability for nation needs, energy development priorities, national energy resources exploitation and national energy supporting reserve National Energy Policies Energy management based on the principles of equality, sustainability and environmental insight in order to achieve national energy security to realizing the energy availability and energy independence Emphasize of Indonesian Energy Policies • 1981: intensification, diversification, conservation, and indexation • 1987 and 1991: intensification, diversification, conservation • 1998 and 2003: intensification, diversification, conservation,energy price and environment The implementation depend on legal politics of energy management as the foundation of national energy policies The Problem of Energy Security in Indonesia • Legal politics management of energy, which makes oil and gas as the main resource of the state foreign exchange without regard to domestic needs • Market oriented in oil and gas governance • World economic era (globalization), causing the Government handed over the management of energy on foreign investors • Neo-colonialism has encourage reduced the role of the State to fulfil the needs of the people Indonesian’s Energy Legal System Indonesian Constitution 1945 article 33 par.3 • The land, the waters and the natural resources within, shall be under the power of the State and shall be used to the greatest benefit of the people • The experience so far that the power of the state is translated as state’s regulating function only • According to the decision of the Constitutional Court, the power of the state on the land, water and the natural resources within has an extensive definition covering 5 state’s authoritarian functions Base on Indonesian experience Energy security may not be built based on liberal regulations in which the state discharges responsibility in natural resources management to the private sectors (particularly foreign investors) and market power as applied in the oil and gas management based on Act No. 22 year 2001 on Oil and Gas Mining The government should play the role as welfarestate actively taking control over actions directed for the wealth of the people Fair Paradigm • People are atteached to the rights to have fair access to use and benefit from energy resources • People can gain the energy in affordable price • The access and price of energy should also be in stable condition (not under fluctuation) • The price of the energy should be determined based on economic values • The role of the state in energy management and control over energy resources is crucially needed in favor to the people Sustainable Paradigm • National energy management policies should consider the principles of sustainable development and the concept of green energy • Sustainable energy supply and exploitation through the concept of green energy is in accordance with energy management policy paradigm which encourages Demand Side Policy (DSP) promoting social awareness for diversification and conservation of energy resources Conclusion