YOGYAKARTA – The Government needs to maximize foreign policy diplomacy in global energy market competition to secure national supply and demand, bearing in mind that major countries in the world such as India, China, Japan and Korea, continue to secure their own by obtaining access other than from the Middle East.
Thus was expressed in the Asia-Pacific energy security seminar and its implications on Indonesia, organized by Center for Energy Studies UGM on Friday (17/12). Present as speakers were International Relations observer, Dr. Muhadi Sugiono, and researcher Drs. Sudiartono.
Muhadi said that world countries were trying to secure their energy interest, moreover that Asia-Pacific countries have emerged as new players, contributing to accelerating world energy demand increase. "The dependence of each nation is getting higher on energy resources that it caused fluctuative dynamics," Muhadi said.
He gave an example that China, contributing 12% of world total energy consumption, has now developed foreign imports market by supporting its national companies in exploitation abroad, which are Central Asia, Russia, Middle East, North Africa and Latin America; while Japan and South Korea have searched for energy resource alternatives in East Siberia.
"This phenomena is a recent fact being implemented by some industrial countries in dealing with energy challenges in the future,” he said.
According to Muhadi, energy has become the main requirement of the state in increasing economic growth despite the risk in fluctuative price. Increase in oil price very much affects economic activities as it will directly increase production cost of goods and services and society’s living cost. Muhadi said that the four factors affecting the sharp increased oil price in the past five years are: US invasion on Iraq, large demands from India and China, Katrina and Rita hurricanes in the US that destroyed oil production in Mexican Gulf, and OPEC incapability to stabilize world oil price.
Sudiartono asserted that countries such as China and India are currently very aggresive to secure their oil energy reserves for their national companies.
But the energy use in China is fully used to produce goods and services that generate foreign exchange. Distinct from Indonesia, the weak technology control in all areas has caused energy to be used to meet consumptive needs. “What is most important now is to make efficient use of energy, energy diversification except oil, and technology control in all areas,” he said.
Head of the Center, Prof. Dr. Jumina, in his speech said that energy security became socio-economic and political issue and commodity that is very significant recently in national and international scope. As a result, every country is implementing the concept of supply-demand balance and sustainability to meet energy needs.
Meanwhile, energy and economy regulations at Asia-Pacific level and global renewable energy development, according to Jumina, need the attention from stakeholders in strengthening national energy and energy diplomacy at global level.