Authors:
Devy Deliana Putri
1
and
Widhyawan Prawiraatmadja
2
Affiliations:
1
School of Business and Management, Institut Teknologi Bandung, Indonesia
;
2
TK Low Center for Executive Education Gedung Graha Irama (Indorama), 12th Floor,
Jl. H. R. Rasuna Said Kav. 1-2, RT.6/RW.4, East Kuningan, South Jakarta City, Jakarta 12950, Indonesia
Keyword(s):
Public Policy, Gas Flare, Oil and Gas, System Thinking.
Abstract:
In 2017, the Government of Indonesia (GOI) became one of the countries that initiate to reduce global gas flaring by Zero Routine Flaring 2030, which declared by Minister of Energy and Mineral Resources to World Bank. However, the level of the implementation of Zero Routine Flaring 2030 still not met the expected by GOI. The results of the evaluation show that there are many factors that barriers to implementation for Oil Company are 1) nature of gas flare,2) no facility available,3) lack of commitment, 4) uneconomic project, then, the barriers for Government barriers are 1) regulation, 2) prices discrimination, 3) long process of bidding process, at last, the barriers for Gas Buyer barriers are 1) difficulties in getting data, 2) nature of gas flare, 3) uneconomic project and 4) high cost of technology.Overall, this policy has a useful purpose and should be continued. Therefore, it can be improved from the current is to support the effectiveness of the system. Based on the analysis
using the methodology of system thinking, then the government interventions should be formulated to improve the situation are: 1) improving Company commitment, 2) improving accurate data measurement, 3) improve the bidding process, 4) improving bidding process.
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