Kaleidoscope 2017: Real Actions of EMR Sector in Achieving an Energy Justice (Part 3/4)

JAKARTA - The Ministry of Energy and Mineral Resources (ESDM) continues to maintain positive results in the third quarter of 2017. Various appreciations were successfully booked on the arrangement of the ESDM sector. One of them is shown by the increasing of index rating of mining and oil and gas governance in Indonesia.

After a tough negotiation, the Government and PT Freeport Indonesia (PTFI) have also successfully agreed on four key points as a condition for the submission of PTFI's operations in Indonesia, which includes changes to the Contract of Work (KK) to the Special Mining Business License (IUPK), smelter development, divestment of 51% shares, and stability of State revenue. Details on the last two points are still discussed with the Ministry of Finance and the Ministry of SOEs.

In line with the increase in electrification ratio, the Government succeeded in pushing Power Purchase Agreement (PPA) between PT Perusahaan Listrik Negara (PLN) Persero with 64 Independent Power Producer (IPP) based on Renewable Energy (EBT) with total capacity around 350 MW and 291.4 MW . In addition, the Government has inaugurated the first stone laying of PLTU Java 4 in Jepara, Central Java.

Meanwhile, the program of BBM Satu Harga until the converter kit distribution is still run as proof of the seriousness of the Government in doing the distribution of energy for all the people of Indonesia.

Here are some important events in the EMR sector during the third quarter of 2017, among others:

JULY

July 10, the Government and Commission VII of the House of Representatives agreed on macro assumptions of the ESDM Sector RAPBN-P 2017. In addition to establishing ICP in APBN-P 2017 of US $ 46 per barrel, it was agreed to add 2.44 million household electricity subsidies (900VA able) so that electricity subsidy is proposed to increase to Rp 51 trillion (APBN 2017 figure Rp 44.98 trillion).

July 14, the signing of a Memorandum of Understanding on the Indonesian National Army (TNI) Assistance to the Ministry of Energy and Mineral Resources for Security, Surveys and Utilization of Energy and Mineral Resources, and Human Resource Development.

July 20, the Ministry of ESDM maintains the title of "BB" (Very Good) for the performance of bureaucratic reform in 2016 which is assessed by the Ministry of Administrative Reform and Bureaucratic Reform (PAN-RB).

July 24, Indonesia's mine governance index on the Resource Governance Index (RGI) in 2017 is ranked 11th among 89 ratings (81 countries). Meanwhile, the sub-sector of oil and gas (oil and gas) was ranked 12th.

July 27, Solar Power Plant (PLTS) off grid operates in Amdui Village, Raja Ampat District, West Papua.

AUGUST

August 1, the utilization of Domestic Component Level (TKDN) in upstream oil and gas sector reached 59%. In addition, ESDM Minister Ignatius Jonan received "Appreciation of Achievement of Lebaran 2017, 1 Syawal 1438 H" given by Presidential Work Unit of Pancasila Ideology Development (UKP-PIP).

2 August, Signing of Power Purchase Agreement (PPA) New Renewable Energy (EBT) between PT. PLN (Persero) with Independent Power Producer (IPP) in 53 locations spread over Sumatra, Java, Sulawesi and Nusa Tenggara region with total capacity reaching 350 MW. On the same day, Ego Syahrial was inaugurated as Director General of Oil and Gas at the Directorate General of Oil and Gas who previously served as Head of Geological Agency.

August 6, Marine Research and Development Center (PPPGL), Ministry of Energy and Mineral Resources Research Institute conducted Sea Trial of Geomarin III Research Vessel in Sunda Strait as preparation of research of sedimenter basin identification in oil and gas (oil) oil and gas (Migas) area of Arafura waters, Papua and OTEC (Ocean Thermal Energy Conversion) in the waters of Lembata, East Nusa Tenggara (NTT).

August 16, the Ministry of Administrative Reform and Bureaucratic Reform (Kemenpan RB) established MAGMA Indonesia in the Top 40 Public Service Innovation Year 2017 through Ministerial Decree of PAN RB Number 40/2017.

August 27, Agreement reached on negotiations between the Government and PT Freeport Indonesia. The result of this negotiation is in accordance with the President's instruction to prioritize the national interest, the interests of the people of Papua, the sovereignty of the state in the management of natural resources, and to keep the investment climate remain conducive.

August 29, Groundbreaking Grissik-PUSRI pipeline in Palembang, South Sumatra to distribute Pusri's gas from ConocoPhillips production gas with capacity of 70 MMSCFD.

31 August, Groundbreaking of Java 4 Steam Power Plant (PLTU) project in Jepara, Central Java Province by Minister of ESDM Ignatius Jonan. With the additional capacity of 2,000 MW from PLTU Java 4, the total capacity in Tanjung Jati steam power plant will be 4,640 MW and is strategic in supporting the Java-Madura-Bali electricity system.

SEPTEMBER

September 8, the signing of 11 (eleven) EBT Power Purchase Agreements (PJBL) between PT PLN (Persero) and IPP developers with a total capacity of 291.4 MW. With the signing of this total power plant from renewable energy signed by its PPA in 2017 amounted to 548,57 MW.

September 20, Inauguration of BD Field owned by Husky-CNOOC Madura Limited (HCML) offshore Sampang District, Madura by Wamen ESDM Arcandra Tahar. With peak production of 100 million MMSCFD and 7,000 barrels of condensate per day, the production of this project contributes to the increase of national oil and gas production.

25 September, Minister of Energy and Mineral Resources representing the President of the Republic of Indonesia holds the First Rock Laying of Project Development of Gas Field Unit of Jambaran - Tiung Biru (JTB) in Bojonegoro Regency, East Java. As a national strategic project expected to produce up to 330 MMSCFD of gas, JTB's efficiency is appreciated as it reduces investment by US $ 2.1 billion to US $ 1.5 billion, with more than 6,000 workers being absorbed in the project.

At the end of September, the ESDM Ministry held a number of agendas to commemorate the 72nd Anniversary of Mines and Energy (PE) that falls on September 28, 2017. The government also announces that tariffs for Fuel and Electricity will not increase until December 31, 2017.

Continued ....

Share This!