Indonesia: Manage the EMR Sector Budget in the Middle of a Pandemic, These Are the Four Focuses of the Government in 2021

Prioritizing Transparency, Accountability and Free of KKN, the Ministry of Energy and Mineral Resources State Budget Manager Expresses Commitment in the Integrity Pact

2021 is confirmed to be a new chapter in handling budget management in the energy and mineral resources sector. ESDM Minister Arifin Tasrif targets an allocation of Rp. 7 trillion, which has been approved by the Indonesian House of Representatives (DPR), will be utilized carefully, effectively, and on target.

“The implementation of the budget must be guided by the principles of budget reform. It is really used for the interests of the people according to the direction of the President,” said Arifin when submitting the Budget Implementation List (DIPA) for Fiscal Year 2021 to 12 main units and 32 work units within the Ministry of Energy and Mineral Resources on Friday. (27/11).

The challenges of uncertainty in the future, continued Arifin, are expected to be resolved through flexibility in budget execution while maintaining transparency and accountability. “I ask all units to immediately compile a risk register for every activity deemed important,” he said.

This risk identification aims to minimize the occurrence of activity cancellations as in previous years. Arifin also asked all units to immediately prepare a detailed implementation plan according to the target set. “Complete the data to unblock and immediately conduct a tender now so that the work can be executed immediately in early 2021,” he explained.

The commitment to implementing the budget with the principle of prudence is contained in the integrity pact carried out by all Senior High Officials within the Ministry of Energy and Mineral Resources, the Head of BPH Migas and the Head of the Aceh Oil and Gas Management Agency.

In addition, participating in signing the integrity pact 180 representatives of APBN management consisting of Officials Signing Payment Orders (PPSPM), Commitment Making Officials (PPK), Treasurers, Procurement Officers representing 492 APBN managers in all units within the Ministry of Energy and Mineral Resources .

“What has been said and signed is not just a formality, but actually shows a commitment to implementing, managing and being accountable for the State Budget in a transparent, accountable, timely manner and free of KKN,” said Arifin.

Arifin said the government is targeting future budget absorption in accordance with President Joko Widodo’s direction, namely to restore the national economy.

“There are four budget focuses to concern us together,” said Arifin. These four issues include handling health, social protection, economic recovery, especially for Micro, Small and Medium Enterprises (MSMEs) and the business world, as well as structural reforms in the fields of health, education and social assistance.

For this reason, government spending is expected to be the main driving force in reviving the wheels of the national economy, so it must be spent immediately so that the public can immediately feel the benefits.

In the ESDM sector itself, the largest portion for the implementation of infrastructure activities is in the Directorate General of Oil and Gas, the Directorate General of New, Renewable Energy and Energy Conservation (EBTKE) and the Geological Agency. The total budget allocation for the three units is Rp.4.4 trillion (62.8%), with total spending on infrastructure of Rp.3.4 trillion (49.2%).

The oil and gas infrastructure budget is allocated for the gas network program, fishermen converter kits and farmer converter kits. Meanwhile, the EBTKE infrastructure is used for the PLTS Roof program, Revitalization of PLT EBT, PLT Surya to support the tasks of Ministries / Institutions, Electric Power Storage Equipment (APDAL), and Solar Street Lighting (PJU).

The Geological Agency’s infrastructure includes being used for volcanic observation posts, geological agency mitigation systems, geopark information centers and geological heritage development, oil and gas seismic surveys and development of groundwater monitoring networks.

For information, the total strategic tenders of the ESDM ministry in 2021 are 196 packages with a value of IDR 3.4 trillion. Phase I will be implemented in 2020 totaling 139 Pkt / IDR 2.8 Trillion. The Phase II Tenders carried out in 2021 amounted to 57 Pkt / Rp 599 billion. (NA)