Massive Infrastructure Construction is for People’s Welfare, Says O&G Director General

MINISTRY OF ENERGY AND MINERAL RESOURCES

PRESS RELEASE

NUMBER: 026.Pers/04/SJI/2021

Date: 18 January 2021

Massive Infrastructure Construction is for People's Welfare, Says O&G Director General

The Indonesian Government is fully aware that people's welfare is the goal of national development; therefore, the construction of infrastructure which directly benefits the public had been done, Director General of Oil and Gas of Ministry of Energy and Mineral Resources (EMR) Tutuka Ariadji has said at the press conference on the performance report of the oil and gas subsector of 2020 at the Ibnu Sutowo Building of DG Oil and Gas in Jakarta on Monday (18/01).

In 2020, continued Tutuka, the construction of infrastructure which directly benefited the public included gas networks (jargas) of 135,286 household connections (SR) in 23 regencies/cities, 25,000 packages of converter kits for fishermen in 42 regencies/cities, and 10,000 packages of converter kits for farmers in 24 regencies/cities. "By meeting domestic demand, we were able to realize domestic gas utilization of 63.16%," Tutuka explained.

In 2021, the Indonesian Government will continue to encourage domestic gas utilization. The target for jargas construction for 2021 is set at 120,776 SR, while the target for converter kits for fishermen and for farmers is 28,000 packages each. "We aim to achieve domestic gas utilization of 65%, especially for industries and electricity generation," added Tutuka.

To facilitate downstream business processes, DG Oil and Gas had issued various business licenses, for example 24 processing licenses, 52 storage licenses, 784 transportation licenses, and 134 trade licenses.

On the upstream side, the Indonesian Government has made every effort to provide a steady supply of oil and gas. It had given 5 approvals for joint study and one approval for general survey in Oil and Gas Work Areas. It had also prepared ten Oil and Gas Work Areas to be offered in stages. "Minister Arifin has agreed to a flexible contract form. In the previous tenders for a Work Area, only a Gross-Split contract was available, but now a Cost Recovery PSC is also offered as well as other forms of contract," said Tutuka.

Additionally, the Indonesian Government had also produced 707 Million Barrels Oil Per Day (MBOPD) of oil lifting (ready-to-sell) out of target 705 MBOPD. Meanwhile, gas lifting was recorded at 975 Million Barrels Oil Equivalent Per Day (MBOEPD) out of target 992 MBOEPD.

The continuous development and infrastructure preparation in 2020 have proven to bring about a positive effect on the realized oil and gas budget, which was 97% out of the allocated Rp2.01 trillion. "This is the highest realization in the last eleven years," Tutuka said. (IY)

Head of Bureau of Communication, Public Information Services, and Cooperation

Agung Pribadi (08112213555)

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