Kaleidoscope 2017: Real Actions of EMR Sector in Achieving an Energy Justice (Part 2/4)

JAKARTA - The achievement of bureaucratic reform is inscribed by the Energy and Mineral Resources (ESDM) sector in the second quarter of 2017. One of them is shown by the signing of the amendment of 27 mineral and coal mining concession contracts, completing the series of amendment process of KK and PKP2B which has been done since 2010. Government also managed to cut licensing in the ESDM sector to 15 licenses only.

The seriousness of the Government to illuminate the 3T (Outermost, Outermost and Underdeveloped) regions in Indonesia was reaffirmed by the signing of Presidential Regulation No. 47 of 2017 on the Provision of Solar Energy Saving Lamp (LTSHE) for Communities Not Gaining Access to Electricity.

Some important policies are taken in the framework of equitable access to energy for all Indonesian people. In addition to priority programs such as the construction of the city gas network, BBM Satu Harga, LTSHE distribution and converter kits for fishermen, the acceleration of energy infrastructure development becomes the focus of the Government to provide the best energy services for the people of Indonesia.

On the other hand, in order to maintain the purchasing power of the people, the Government has determined that there will be no increase in electricity prices since July 1st until December 31st, 2017. The government also guarantees 3 kg LPG price to be fixed until 30 September 2017.

Here are the key events in the energy sector in the second quarter of 2017:

APRIL

April 5, the Government released 17 locations in the city / district that will be the development of gas network (jargas) in 2018, which includes the city of Semarang (8,000 SR), Blora City (6,500 SR), Kab. Sorong (7,000 SR), Balikpapan (17,000 SR), Probolinggo (8,000 SR), Prabumulih (4,800 SR), Sorong (4,500 SR), Kab. Bekasi (5,000 SR), Kab. Pasuruan (8,000 SR), Bontang City (8,000 SR), Kab. Deli Serdang (6,000 SR), Bogor City (10,000 SR), Kab. Tuban (SR), Medan City (6,996 SR), Kab. Sidoarjo (12,000 SR), Samarinda City (5,000 SR) and Kota Tarakan (5,000 SR).

April 7, Power Purchase Agreement (PPA) Steam Power Plant (PLTGU) Riau with capacity 275 Megawatt (MW) and Steam Power Plant (PLTU) Sulut-3 with 2x50 MW capacity signed by PLN and developer.

April 12, ESDM Minister signed amendment of 27 mineral and coal mining concession contract consisting of 12 Contract of Work (COW) and 15 Coal Mining Concession Working Agreement (PKP2B). After the signing of the amendment of 27 contracts, the remaining contract amendments to be completed are 44 contracts, consisting of 11 families and 33 PKP2B.

April 13, operation of fuel storage tank owned by PT Oiltanking Karimun in Teluk Lekup, Karimun Regency, Riau Islands Province strengthens national energy security. With a total capacity of 730 thousand KL, operation of storage tank PT Oiltanking Karimun is equivalent to add three days of reserves of domestic fuel needs.

April 20, President Joko Widodo endorsed a regulation related to electricity supply for people in border areas, underdeveloped regions, isolated areas and outer islands. This regulation is issued in the form of Presidential Regulation (Perpres) No. 47 of 2017 on the Provision of Solar Energy Saving Lamp (LTSHE) for Communities that Have Not Gained Access to Electricity.

April 25, Andy Noorsaman Soomeng, who previously served as Head of Downstream Oil and Gas Regulatory Agency (BPH Migas) was inaugurated as Director General of Electricity to replace Jarman who has been full-time.

MAY

May 2nd, ESDM Minister with Denmark Development Cooperation Minister Ulla Tornaes launches Indonesia Wind Energy Potential in collaboration with Denmark, which is expected to help the government and business actors in determining the area that has the potential to build a Bayu Power Plant (PLTB).

May 3, the launching of Indonesia Gas Balance Sheet Master Plan 2016 and Master Plan of National Gas Transmission and Distribution Network Year (RIJTDGBN) 2016-2030.

May 9, President Joko Widodo inaugurated electricity infrastructure projects in Maluku and Papua and ground breaking of PLTMG MPP Jayapura 50 MW.

May 12, Minister of EMR inaugurated 14 deep ground water drilling points and installation of PJU (PJU Solar Power and PJU retrofit) in West Sumatra Province area built with APBN funds. Total supply of PJU TS is 615 units, and PJU retrofit as many as 1950 units.

May 21, National Campaign of 10% Cut Energy Saving Movement centered in 3 cities, Denpasar, Makassar and Balikpapan. This movement is a joint action involving Government, business / industry, civil society organizations and individuals to make energy savings of 10%.

May 21, Marine Onshore Marine Vessel Power Plant (MVPP) with capacity of 240MW arrived at Belawan Port Medan. This Power Station is a short-term solution.

May 21, the inauguration of the Sumpal Compression Project in Corridor Block, Musi Banyuasin Regency, South Sumatra, operated by KKKS ConocoPhillips.

May 2017 closed with acceptance of unqualified opinion on the 2016 KESDM Financial Report given by the Supreme Audit Agency (BPK), as well as the inauguration of the Chairman of Oil and Gas Regulatory Body Fanshurullah Asa, the BPH Migas committee, and the leadership of SKK Migas of the Ministry of Energy and Mineral Resources.

JUNE

June 14, the ESDM Minister released a simplification of licenses that have been done in order to facilitate the investors. The ESDM Ministry now has only 15 licenses with details of 6 oil and gas permits, 6 minerba permits, and 3 EBTKE licenses. For oil and gas licensing has been simplified from previously 104 permits to 6, Minerba of 117 permits is summarized into 6 permits (4 already handled by BKPM), while for electricity subsector, Ministry of EMR only issued 3 certification and 2 recommendations. All these permissions are further simplified through the implementation of an online system.

June 21, the Government insists there will be no increase in electricity prices since July 1 until December 31, 2017. The government also provides a guarantee not to raise the price of 3 kg LPG from July to 30 September 2017.

Continued ...... (KO)

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