Quantitative analysis of Indonesia’s reserves and energy security as an evaluation by the nation in facing global competition

Abstract

Energy security has become a serious concern for all countries in the world and each country has its own definiton for measuring its energy security. The objective of this study was to measure energy security of Indonesia quantitatively by comparing it with other countries and provide some recommendations for enhancing the energy security. In this study, the database was developed from various sources and was cross-checked to confirm validity of the data. Then the parameters of energy security were defined, where all of data will be processed towards the selected parameters. These parameters (e.g. Primary Energy mix, TPES/capita, FEC/capita, Self Sufficiency, Refining capacity, Overseas Energy Resources, Resources diversification) are the standards used to produce an analysis or evaluation of national energy management. Energy balances for Indonesia and 10 selected countries (USA, Germany, Russia, England, Japan, China, South Korea, Singapore, Thailand and India) were presented from 2009 to 2013. With a base index of 1.0 for Indonesia, calculated energy security index capable of representing Indonesia energy security compared relatively to other countries were also presented and discussed in detail. In 2012, Indonesia security index is ranked 11 from 11 countries, while USA and South Korea are the highest with security index of 3.36 and 2.89, respectively. According to prediction for 2025, Indonesia energy security is ranked 10 from 11 countries with only Thailand has lower security index (0.98). This result shows that Indonesia energy security was vulnerable to crisis and must be improved. Therefore this study proposed some recommendations to improve Indonesia energy security. Indonesia need to increase oil production by constructing new refinery plants, developing infrastructure for energy distribution to reduce the potential of energy shortage and accelerating the utilization of renewable energy to reduce the excessive use of primary energy. From energy policy proposed in this study, Indonesia energy security for 2025 could be improved to ranked 8 of 11 countries, better than Malaysia, Thailand and Singapore.