Cooperation in the energy sector – a bridge between the two countries

The minister based his speech on some of the following talking points:

Excellencies, ladies and gentlemen, 

• Today, we have entered into a strategic partnership with Indonesia. A key dimension of this partnership is climate and energy. The two are closely linked: energy and climate change. Energy at the core of both countries’ efforts to address climate change.
• Norway and Indonesia have had a regular energy dialogue since our energy ministries signed a Memory of Understanding in 1995.
• “Energy is foreign policy” – as any other important natural resource we share. Foreign policy implications. Room (potential) for cooperation (or – in other parts of the world – for conflicts). And therefore: I am here, as Foreign Minister, to address this conference, stressing that: this topic is of great importance to both of us; energy is a key political priority for both Norway and Indonesia, and – so is climate change – and the two are very closely linked.
• When President Yudhoyono came to Norway in May 2010, Norway and Indonesia entered into a historical and innovative partnership on climate change and forestry: Norway pledges to support your bold and wise global leadership in reducing greenhouse gas emissions from deforestation and forest degradation (REDD+).
• Norway and Indonesia enjoy a long-standing cooperation in the petroleum sector. Through the activities of PETRAD, INTSOK and Innovation Norway, networks have been established, exchanges taken place.
• Norway and Indonesia also share the view that transparency and accountability is critically important for oil and gas to continue to be a blessing and not a curse of our economy and our society.
• We welcome Indonesia’s strong support for EITI (the Extractive Industries Transparency Initiative), and congratulate you on your country’s recent admission as official EITI candidate. On our side, Norway is the first OECD country to implement EITI. 
• For both our countries, the oil and gas sector is the single biggest contributor to the state budget.
• After more than a century of oil and gas production, Indonesia still has substantial remaining potential in deep waters and in the gas sector. These are areas where Norway has developed competitive expertise and competence since the 1960s.
• Norway is the second largest supplier of gas to the European market, close to the share of Russia.
• Gas will also have a prominent place in the Indonesian energy mix for many decades to come. 
• Norway focuses strongly on developing carbon capture and storage (CCS) as a measure for mitigating climate change. CCS will complement other climate change mitigation actions by providing an option for using fossil fuels, including coal, during the transition to a low emission economy.
• I have been told that the exploitation of the Natuna D Alpha field is important to Indonesia. It seems to represent a unique opportunity to transform Pertamina into an International Oil Company, and for Indonesia to pioneer the production of CO2 rich gas.
• Therefore, I am pleased to note the strong cooperation between Pertamina and Statoil, and I am glad to see that Statoil has been selected as one of the companies for the final bid round for the development of this very complex field. Our companies are also eager to cooperate as you expand your business activities across the LNG value chain.
• In developing hydropower Norway has more than a century of experience and we rank as the world’s 6th largest producer. Hydropower forms the backbone of our prosperity. Today, virtually all of our electricity is produced from this source. Regardless of the scale of hydropower plants, we regard this source of energy as clean and renewable. About 60% of Norway’s energy consumption is provided by renewable energy, which is the highest share in all of Europe. The development of renewable energy sources is vital for a sustainable future, but scaling up takes time.
• Indonesia’s aim is that 25% of its total energy consumption will be in the form of renewable energy by 2025. Norway can offer knowledge and experience in most aspects related to hydropower development.
• Contacts have been established between Indonesian and Norwegian partners, and a plant is under construction at Sulawezi with a Norwegian investor.
• Renewable energy have always been important for Norway, and we are well positioned to further develop our renewable energy capacity, in close cooperation with partners in Europe and globally.
• Conclusion: The prospects for continued economic growth in Indonesia are impressive. Norway stands ready to become more closely involved in business development, trade and the energy sector, including renewable energy.
• My aim at this visit is to further revitalise our bilateral energy dialogue and business-to-business contacts. Norway is ready to engage in more business cooperation – and to share our expertise and experience. Expanded energy cooperation with Indonesia is a priority, and I am looking forward to the conclusions of this conference today. The level of interest and participation in today’s conference bodes well for new energy partnerships between Norway and Indonesia in the future. Finally: My thanks to the hosts of the conference: Innovation Norway, the Indonesia Norway Business Council (INBC), as well as the Royal Norwegian Embassy. Thank you.