ExxonMobil Cepu Limited (EMCL) has initiated the Banyu Urip Infill Clastic drilling project in the Cepu Block, Bojonegoro, East Java, starting with the drilling of the B-13 well on April 27, 2024. This long-term project, expected to extend over several years, includes the drilling of five Carbonate infill wells and two Clastic infill wells. The directional drilling of the B13 well, situated between existing wells in the Banyu Urip field, aims for a total depth of 6,527 ftMD over 50 days, with subsequent wells directly tied to production facilities. These endeavors are anticipated to significantly contribute to national oil production, aligning with the target of achieving 1 million barrels of oil per day (BOPD) by 2030.
Led by the Upstream Oil and Gas Regulatory Task Force (SKK Migas), efforts to boost oil and gas production are underway, with a focus on new well drilling and maintenance supervised by contractors. Exploration activities, including massive drilling initiatives by contractors like EMCL, are poised to unearth giant discoveries, attracting investor interest and potentially unlocking Indonesia’s promising upstream oil and gas potential. Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif emphasizes the importance of these drilling activities in enhancing production rates, particularly in the Banyu Urip field, with hopes of mitigating decline and matching the success of the Carbonate field. Collaboration with Exxon is key, leveraging their expertise and technology to maximize output and explore further investment opportunities in Indonesia.
Microsoft CEO Satya Nadella has pledged a substantial investment of approximately US$1.4 billion for the advancement of Artificial Intelligence (AI) in Indonesia. This commitment, confirmed by government sources after a meeting between Nadella and President Joko Widodo, aims to cultivate 840,000 digital talents specialized in AI within the country over the next four years, translating to 210,000 annually. Additionally, Microsoft intends to bolster the developer community through programs like the ‘AI Odyssey,’ with a target of reaching 10,000 developers equipped with Microsoft credentials. Minister of Communication and Informatics Budi Arie Setiadi highlighted Microsoft’s commitment to investing in AI and cloud computing infrastructure, along with extensive AI training opportunities. The exact size of Microsoft’s investment in Indonesia was not disclosed during the meeting but is expected to be announced later by Satya Nadella. This investment marks the largest in Microsoft’s business activities history in Indonesia, spanning 29 years.
Minister of Investment, Bahlil Lahadalia, has recently provided significant updates regarding the investment plans of two major players in Indonesia’s business landscape: Djarum Group and Wings Group, concerning their involvement in the ambitious development projects of the Indonesian Capital City (IKN). Lahadalia confirmed that both Djarum and Wings Group, renowned for their substantial influence and resources, are slated to kickstart their investments in the development endeavors of IKN within the current year, post the conclusion of general elections.
The announcement comes amidst anticipation and speculation surrounding the participation of these heavyweight corporations in the Nusantara Consortium spearheaded by Agung Sedayu Group’s Boss, Sugianto Kusuma or Aguan. However, Lahadalia clarified that despite the initial exclusion of Djarum and Wings Group from the consortium, both entities expressed keen interest in contributing to the development of IKN.
Interestingly, both Djarum and Wings Group have affirmed their commitment to non-commercial initiatives within IKN, notably the establishment of a botanical garden. Sheila Kansil, the Head of Corporate Communications & CSR at WINGS Group Indonesia, emphasized the group’s continued participation in the Nusantara Consortium, particularly in the philanthropic pursuit of constructing the Botanical Garden. Similarly, Djarum Group has expressed aspirations to develop a botanical garden within IKN, intending to carry out this endeavor through the Bakti 5 Djarum Foundation.
A coalition comprising Civil Society groups and representatives of the Kualan indigenous community in Ketapang, West Kalimantan, has lodged a formal complaint against industrial plantation forest concessionaire PT Mayawana Persada with the Ministry of Environment and Forestry (KLHK) in Jakarta. The coalition alleges that PT Mayawana Persada has engaged in extensive deforestation activities, amounting to approximately 35,000 hectares within a total concession area of 136,710 hectares since 2016. The reported violations include the destruction of protected peatlands, which serve as crucial orangutan habitat.
During a meeting at the Manggala Wana Bhakti Building in Jakarta, the coalition, comprising organizations such as Satya Bumi, WALHI West Kalimantan chapter, and the Alliance of Indigenous Peoples of the Archipelago (AMAN), urged KLHK to revoke PT Mayawana Persada’s license, restore the environmental damage caused by the company, and compensate affected indigenous communities. The urgency of the situation necessitates firm action from the Indonesian Minister of Environment and Forestry to revoke the concession permit.
The Indonesian government is spearheading efforts to establish a Global Water Fund at the upcoming 10th World Water Forum scheduled for May 18-25, 2024, in Nusa Dua, Bali. This initiative, aims to address budget imbalances and expedite the realization of Sustainable Development Goal (SDG) 6, which focuses on universal access to clean water and sanitation by 2030. The proposed Global Water Fund would target water infrastructure needs, crisis mitigation, climate change adaptation, and monitoring mechanisms, offering tangible solutions to the world’s water challenges.
To complement this global initiative, the Indonesian government has already established the Indonesian Water Fund (IWF) to incentivize investment and ensure the provision of clean water nationwide. Discussions on sustainable water financing and the proposed Global Water Fund will culminate in a concept note to be presented and elaborated during the forum. The forum’s agenda encompasses political, regional, and thematic processes, facilitating comprehensive dialogue and action on water-related issues.
In 2023, PT Pertamina Patra Niaga, the commercial arm of Indonesia’s state oil and gas company, sold around 24 million kiloliters of B35 biodiesel to both retail and industrial consumers. The retail B35 biodiesel, sold at gas stations, is subsidized and priced at Rp6,800 per liter, while the industrial price corresponds to market rates and monthly reference publication prices. This substantial volume underscores the growing demand for biodiesel in the Indonesian market.
The Oil Palm Plantation Fund Management Agency (BPDPKS) projects a significant increase in the need for B35 biodiesel incentive funds in 2024, amounting to Rp28.5 trillion (US$1.8 billion). This projection reflects a 55.56 percent rise from the incentive distribution realized in the previous year. Despite this substantial increase, PT Pertamina Patra Niaga aims to maintain stable biodiesel distribution amid rising consumption trends. The company emphasizes the importance of balancing production and distribution increases with the availability of raw materials to ensure uninterrupted supply.
Coal and electric vehicle company PT TBS Energi Utama Tbk (TOBA) – which 10% of shares are owned by Coordinating Minister for Maritime Affairs and Investment Luhut Panjaitan – has allocated between US$ 50 million and US$ 60 million of capital expenditure (Capex) for the year 2023. The Capex would be allocated for the development of the new EVs and the renewable energy with its subsidiaries.
PT Bayan Resources Tbk. (BYAN) has absorbed capital expenditure (Capex) of US$ 166.2 million on the construction of a coal transport road, overland conveyor and a barge loading facility in Muara Pahu, East Kalimantan. The company seeks to increase its 2023 coal production targets to over 45 million tons, an increase compared to 2022 which was below 40 million tons.
Investment Minister/Head of the Investment Coordinating Board (BKPM) Bahlil Lahadalia announced that investment realization from January to September 2022 has reached IDR 892.4 trillion – or 74.4% of the target – both foreign and direct investments. He was upbeat that his ministry could reach a targeted investment of IDR 1,200 trillion for the year 2022.
PT Galva Technologies Tbk (GLVA) has planned to allocate IDR 80 billion of Capex for 2023 to strengthen the company’s recurring income through managed services business model.
