Indonesian State energy company PT Pertamina took a significant stride towards fortifying the nation’s energy security by forging a Memorandum of Understanding (MOU) with Eni SpA in the Netherlands on April 19, 2024. This collaborative venture aims to delve into potential oil and gas exploration and production projects across various international blocks, thereby bolstering national energy resilience. The MOU signing ceremony, convened in Amsterdam, witnessed the participation of key representatives from both Pertamina and Eni, underscoring the gravity of this strategic alliance.
Nicke Widyawati, President Director of PT Pertamina, accentuated that the MOU would foster greater synergy between Pertamina and Eni, not only within Indonesia but also through prospective collaborations in foreign blocks, notably in Africa and the Middle East. Highlighting Eni’s proven success in exploration and its recognition of Indonesia as a pivotal focus within its international business portfolio, this partnership assumes paramount importance. Salyadi Dariah Saputra, Director of Strategy, Portfolio, and Business Development at PT Pertamina, underscored that this collaboration presents Pertamina with an avenue to actively manage oil and gas resources at the international level, thereby augmenting its capacity to bolster both domestic and international oil production, thus reinforcing national energy security.
President Joko “Jokowi” Widodo has affirmed his readiness to facilitate the transition process from the current Cabinet of Indonesia Maju to the forthcoming administration led by Prabowo Subianto and Gibran Rakabuming Raka. This decision follows the Constitutional Court’s final ruling rejecting all appeals regarding the Dispute of the General Election Results by candidate pairs number 1, Anies Baswedan-Muhaimin Iskandar, and number 3, Ganjar Pranowo-Mahfud MD. President Jokowi emphasized the government’s support for the transition, addressing recent allegations by stating that the ruling dispels accusations of cheating, authorities’ intervention, politicization of social assistance, and lack of neutrality of regional heads.
J Resources Asia Pasifik (PSAB) has unveiled a promising gold prospect within the operational area of its subsidiary, PT J Resources Bolaang Mongondow (JRBM), located in North Sulawesi. The discovery, resulting from a comprehensive review of regional data and initial field exploration in 2023, presents a significant opportunity for detailed exploration phases towards potential mining development.
Initial exploration activities, including geological mapping, surface sampling, and preliminary geophysical surveys, have identified a substantial area of gold mineralization spanning over 1.4 kilometers in length. Surface samples have revealed noteworthy gold grades, with one channel sample exhibiting a 27-meter length averaging 1.3 grams per ton (g/t) of gold. Furthermore, initial drilling results have indicated favorable lateral and vertical distribution of gold mineralization, with notable average gold grades observed across various drill holes.
Resource modeling and metallurgical tests have displayed highly positive outcomes, including promising leaching extraction rates and oxide-type gold characteristics, underlining the prospect’s potential for future mining operations. The discovery is anticipated to extend the lifespan of the existing Bakan mine or potentially develop into a new mining venture, aiming to add substantial value to the company, shareholders, and stakeholders alike.
The Center of Energy and Resources Indonesia (CERI) has raised concerns over the Indonesian government’s extensive oil imports, surpassing domestic production and posing a threat to national energy security. With national oil production at 586 thousand barrels per day and imports reaching 840 thousand barrels per day, CERI’s executive director, Yusri Usman, questions the viability of the government’s “1 Million Barrels Per Day Production Program.” This initiative, pledged by Minister of Energy and Mineral Resources Arifin Tasrif and the Head of the Upstream Oil and Gas Regulatory Task Force (SKK Migas), is expected to lead to Pertamina importing 1 million barrels per day to meet domestic demands, including for the Trans Pacific Petrochemical Indotama (TPPI) refinery.
The decline in Indonesia’s crude oil production since 2004, coupled with geopolitical uncertainties in the Middle East, further exacerbates the situation, potentially driving crude oil prices to around $100 USD per barrel, underscores the vulnerability of its energy sector.
The government has refuted claims of widespread layoffs in several tin smelter companies in the Bangka Belitung Islands Province (Babel), dismissing them as unfounded. Indah Anggoro Putri, Director-General of Industrial Relations and Social Security at the Ministry of Manpower, stated that no reports of mass layoffs have been received by her office. Agus Afandi, Head of the Industrial Relations and Social Security Monitoring Division at the Bangka Belitung Manpower Office, echoed this sentiment, suggesting that inquiries regarding layoffs should be directed to the City Manpower Office, as they haven’t received any official reports at the provincial level.
However, Member of the House of Representatives, Mulyanto, has urged the government to overhaul the governance and trading of tin in Babel in response to reports of mass layoffs. Mulyanto highlighted concerns over the management of tin, emphasizing the need to simplify artisanal mining permits to legalize traditional mining activities and facilitate government oversight. He called on the Minister of Energy and Mineral Resources to optimize involvement from all parties, advocating for opportunities for small entrepreneurs and community groups to participate in the management of tin resources alongside large businesses.
The Upstream Oil and Gas Regulatory Task Force (SKK Migas) attributes the drop in Indonesia’s oil production to a combination of factors, chiefly the Covid-19 pandemic and aging facilities. Hudi D. Suryodipuro, Head of Program and Communication Division at SKK Migas, highlighted the pandemic’s adverse impact on operations and investments in the oil and gas sector, prolonging the production cycle due to decreased investments. Moreover, the continued use of old facilities, such as those at PHE ONWJ dating back to 1966, poses challenges, shifting the focus from production capacity to preventing unplanned shutdowns to maintain production levels.
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.
