Never Forget that Switching to Renewable Energy Still Requires Substantial Expenditure!
According to Albert Hasudungan, a lecturer at Prasetiya Mulya University's School of Business and Economics, oil and gas are crucial to the economy in three different ways. To ensure sustainable development, switching to renewable energy does require significant investments.
As consumer goods for homes and transportation were the first two of Albert's three key functions. Second, as a critical component in the manufacturing process across numerous sectors. As a crucial resource for economic activity, third.
"According to data from the International Energy Association, industry consumes the most gas, while transportation uses the most oil. Monday, May 1, 2023. "Gas is used to support the economic activities of the food and beverage industry, MSMEs, and home industries," Albert stated in his written statement.
He went on to say that the majority of the oil was imported from the Middle East, despite the political unrest and lack of peace that existed there. However, due to insufficient gas exploration, Indonesia, which also exports gas, is seeing a decline in its output.
"Oil and gas investment is more focused on oil production with a small added value, while exploration and storage technology are still not developed," the man claimed.
Reduced research into
renewable energy
He continued by saying that the recent drop in fuel and gas prices is due to the upbeat outlook for the world economy. However, Indonesia's long-term energy security will be in jeopardy due to the lack of research and development into renewable energy sources.
Future oil prices may marginally rise if events that weaken the military and economic circumstances, particularly the Middle East War, impair supply. Surprisingly, oil offers a nice possibility as well.
"The pressure on scarce oil resources will attract private investment, both foreign and domestic, to develop renewable energy in Indonesia as an alternative fuel in the future," he claimed.
He continued by saying that gas has problems as well. Indonesia's industrial growth, particularly that of MSMEs, is key to its economic expansion. Business players will confront increased costs in the absence of a robust gas production infrastructure, and they lack significant expertise in renewable energy sources.
However, he continued, Indonesia and Russia get along well. Indonesia's energy insecurity issue can be solved by investing in Russian gas technology rather than solely relying on imports. Numerous energy policies are available for implementation. To combat the issue of energy instability, for instance, more investment in renewable energy is required.
He added that the fiscal strategy aims to improve Indonesia's investment climate in order to draw in more investment and cut oil subsidies in order to lessen the strain on the fiscal budget. Indonesia also needs to create comfortable mass transit systems like electric trains and buses that can carry a lot of passengers at once.
"This can reduce excessive oil demand, which comes from private transportation outside Java," he said in his conclusion.
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