Keynote Speech, Minister of EMR Bapak Darwin Saleh at the Opening Ceremony of 35th IPA Convex

Jakarta Convention Center, May 18th 2011

Your Excellency Bapak Boediono, the Vice President of the Republic of Indonesia,
Excellencies the Ministers of the United Indonesia Cabinet II,
Honourable Members of the Commission VII of the House of Representatives,
Excellencies Ambassadors,
Honourable Governor of Jakarta, Bapak Fauzi Bowo,
The Chairman of the Indonesian Petroleum Association,
Distinguished Business Leaders and Members of the Indonesian Petroleum Association,
Distinguished Guests, Ladies and Gentlemen.

Assalamu’alaikum Warahmatullahi Wabarakatuh
Salam sejahtera untuk kita semua,
Good morning to all of you,

Allow me to begin by expressing the deepest gratitude to God Almighty for the divine grace and blessings He has bestowed upon us, that we are able to assemble here at the Opening Ceremony of the 35th ANNUAL IPA CONVENTION AND EXHIBITION.
It is indeed a great honor and pleasure for me to be among Indonesia’s oil and gas community and stakeholders, and to deliver a speech at this prominent convention and exhibition. I notice that many dignitaries and leaders of the oil and gas industry from all over the world, are joining us today and therefore I would like to convey my warmest welcome. And, my profound gratitude to Your Excellency Bapak Boediono, the Vice President of the Republic of Indonesia, for sparing Your Excellency’s precious time to be with us this morning.

Excellencies, Distinguished Guests, Ladies and Gentlemen,
The oil and gas industry remains strategic to the economic development of Indonesia.  The industry plays important role in fulfilling domestic fuel and energy needs, providing material and feedstock for industry, as well as in accelerating regional development and creating jobs and employment. Moreover, this industry is still a very important source of state revenue.
Indonesia's energy mix, similar to that in most developing countries, is still dominated by fossil fuels. Oil and gas accounts for 68% of the current energy mix, while coal contributes another 26%.
With our economy growing at 6.3-6.8% per year, energy demand is expected to increase by 6% per year, until 2014. To allow sustainable energy supply for national development, Indonesia has targeted energy elasticity of less than 1 by the year 2025. The national primary energy mix will be also optimised by reducing the share of fossil fuels and increasing the share of renewable energy, particularly geothermal and bio fuels.
Nevertheless, oil and gas will remain dominant in the national energy mix by the year 2025, with 62% share. Therefore, we continue our efforts to increase the production of oil and gas, and to develop the required infrastructure.
As many oil and gas fields in Indonesia are maturing, continuing their natural decline, we are optimistic that the frontier and deepwater areas, which are mostly located in the eastern part of Indonesia, will contribute significantly to future oil and gas production. We therefore are improving efforts to invite major oil and gas investors to pursue development in these areas.
To this end, the Government has launched several initiatives, among others by increasing the number of offered working acreages for oil and gas, CBM and geothermal. We are encouraged to see the positive responses to new blocks offered in deepwater and frontier area such as Semai, Halmahera, West Aru, South West Timor and South Java.
Excellencies, Distinguished Guests, Ladies and Gentlemen,
I would like to conclude by pointing out that to increase oil and gas production, Indonesia needs to boost exploration in the eastern part of Indonesia, which will require more effort and significantly more investment.
Moreover, I would also encourage greater participation from members of IPA in the development of domestic oil and gas infrastructure, as well as the development of non-conventional sources such as coal-bed methane (CBM) or shale gas.
Let us continue to work hard and profesionally in a spirit of partnership, to further improve our performance and to reach greater heights. Let us continue to build an industry in which all stakeholders are winners. Realize profits for your shareholders, but also let the people of Indonesia reap the benefits of their natural resource heritage. The government of Indonesia will continue to provide the much needed support for industry to face the challenges.

Finally, I would like to take this opportunity to thank the IPA Organizing Committee for their untiring efforts in making this event a success. I would like also to thank all distinguished panelists and speakers, delegates and exhibitors, for their participation in this year’s convention and exhibition. I wish you all a productive dialogue and interaction, as we explore ways to further cooperation in developing the growth, security and sustainability of energy in Indonesia.
Last, but certainly not least, may I now kindly ask Your Excellency Bapak Boediono, the Vice President of the Republic of Indonesia, to deliver a speech and officially open this 35th IPA Annual Convention and Exhibition.

Thank you for your kind attention.
Wassalamu’alaikum Warahmatullahi Wabarakatuh.

Minister of Energy and Mineral Resources,

Dr. Darwin Zahedy Saleh

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