Friday, April 19, 2024
Indonesia Business Post Media Group aims to promote Indonesia’s business transparency and investment opportunities to global companies and investors. We provide information on business intelligence and opportunities within Indonesian political changing-driven international business context.

The Upstream Oil and Gas Regulatory Task Force (SKK Migas) and Prima Energy Northwest Natuna Pte. Ltd. (PENN) have finalized a revised plan of development (PoD) for the Ande-Ande Lumut (AAL) oil field in the West Natuna Sea, approved by Minister of Energy and Mineral Resources Arifin Tasrif on March 5, 2024. Characterized by heavy oil, the AAL field poses challenges due to its remote location and sand-prone reservoirs, requiring specialized handling and resulting in higher operational costs.

The revised PoD includes a phased approach using a central production platform (CPP) and floating storage, with the first phase involving platform installation and drilling seven horizontal production wells targeting oil from K and G sand layers. PENN aims to start production by 2026 at 20,000 barrels per day (bopd), leveraging new technologies to overcome challenges and exploring additional prospects in the Northwest Natuna Working Area.

PT Pertamina Hulu Energi (PHE) has secured a 20-year contract extension for the Urdaneta West Field Block in Venezuela, solidifying its commitment to the global energy sector and emphasizing sustainable practices and community development initiatives.

Tsingshan Holding Group Co.’s battery business unit, REPT Battero Energy Co., the world’s leading nickel producer, is set to establish a battery factory in Indonesia to bolster the country’s economy by adding value to raw commodities. According to Bloomberg’s report on March 27, 2024, the factory will be located in Tsingshan’s operating area in Weda Bay and is slated to commence operations next year. This strategic move aims to compete with other nickel battery manufacturers globally, leveraging Tsingshan Group’s raw materials and infrastructure.

By building this factory in Indonesia, REPT seeks to outpace competitors, especially those expanding in Europe and North America, with anticipated production starting in 2026 or later. China’s substantial investments in Indonesia, exceeding $7 billion last year, mainly focus on downstream facilities for abundant raw materials

Indonesia’s Ministry of Energy and Mineral Resources (ESDM) and the United States have signed an MoU to establish the Clean Energy Working Group Indonesia-US, aiming to advance clean energy technologies and support Indonesia’s renewable energy goals. This collaboration encourages U.S. investment in energy transition technologies, focusing on domestic mineral commodities for energy storage and electric vehicles, aligned with broader international efforts under the JETP framework post-G20 Summit.

Indonesia is rapidly advancing its solar panel industry, emphasizing its significant solar energy potential with a capacity of 207 Gigawatts per year. The country’s rich resources like quartz stone, zinc ore, and nickel ore are key for solar panel production. Nickel, found across seven provinces, especially in Southeast Sulawesi, North Maluku, and Central Sulawesi, plays a crucial role.

Indonesia aims to process these materials into polysilicon, wafers, cells, and modules for Solar Power Generation Systems (PLTS). Significant investments, including US$3.5-4 billion in North Kalimantan, underscore Indonesia’s commitment to solar energy development following engagements with industry leaders in China.

Minister of Public Works and Housing Basuki Hadimuljono updated the Indonesian House of Representatives on the progress of the Nusantara Capital City (IKN) project in 2023, highlighting a significant budget allocation of Rp24.97 trillion (US$1.7 billion) for essential infrastructure development.

This funding supported the completion of key projects including the Sepaku Semoi Dam, raw water intake from the Sepaku River, KIPP reservoirs, Mentawir Reservoir, main drainage, toll road construction, logistic roadworks, and national axis road development. Additionally, allocations were made for spatial planning initiatives such as National Axes I and II arrangement, land development in designated zones, and construction of government buildings including the Presidential Office and Coordinating Ministry buildings.


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.

Image: @Bayan resource

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.

Image: @Tribunnews

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.

Minister of State-Owned Enterprises (SOEs) Erick Thohir has warned the Indonesian SOEs to anticipate the impact of global economic and geopolitical turmoil, citing the US inflation at 3.5 percent as indicator that the Fed would not lower the benchmark interest rate (Fed Fund Rate) in […]
President Joko “Jokowi” Widodo has approved the additional state capital injection (PMN) to PT Wijaya Karya (WIKA) amounting to Rp6 trillion (US$419 million). […]
PT Freeport Indonesia (PTFI) has deposited around Rp3.35 trillion (about US$207 million), or about sevent percent out of its 2023 profit of Rp48.79 trillion, to the regional administrations in Papua. […]
The Coordinating Ministry for the Economy held a coordination meeting with all Deputy Ministerial elements along with the Ministry of Foreign Affairs and several Ambassadors on Monday, April 15, 2024 in response to developments in the Middle East conflict following Iran’s retaliatory offensive against Israel.  […]

New opportunities

PT MRT Jakarta sealed on Wednesday, April 17, 2024, a partnership agreement with Sojitz Corporation for the Phase 2A construction of railway tracks and signaling systems from the Hotel Indonesia turnabout  to Kota, valued at IDR 4.7 trillion (about US$ 290 million). […]
PT Asuransi Allianz Life Indonesia (Allianz Life) and PT Bank HSBC Indonesia (Bank HSBC) on Thursday, April 18, 2024, launched a financial protection product − the Premier Legacy Assurance − in the form of inheritance to support customers’ prosperous family life in the future. […]
Coordinating Minister of Maritime Affairs and Investment, Luhut Binsar Pandjaitan, has announced that the government is prepared to provide incentives to attract investments from Apple Inc., akin to those in India and Thailand. […]
Indonesian Defense Minister Prabowo Subianto received a courtesy call from Chinese Foreign Minister Wang Yi at the Ministry of Defense in Jakarta on Thursday, April 18, 2024. […]
Director General of Oil and Gas at the Ministry of Energy and Mineral Resources (ESDM), Tutuka Ariadji, reveals that Venezuela has offered several prospective oil blocks to Indonesia, but the United States’ embargo on Venezuela remains a constraint for further acquisitions in the country. […]
President Joko “Jokowi” Widodo met with Minister of Foreign Affairs of the People’s Republic of China (PRC) Wang Yi at Merdeka Palace, Jakarta, on Thursday, 18 April 2024.  […]
President Joko Widodo said Indonesia aims to cut its fiscal deficit to less than 3% of its gross domestic product next year for the first time since 2019. […]
Indonesian government officials should remain vigilant against the potential threat to the state ideology, the nation’s peace and harmony, despite the decline in online radicalization following the defeat of the Islamic State of Iraq and Syria in the Middle East and worldwide. In an era […]
The program, dubbed the “Partnership for Global Infrastructure and Investment” (PGII), aims to mobilize $600 billion by 2027 in investments for infrastructure in developing countries with an emphasis on sustainable and secure development. Neither President Biden nor the White House fact sheet explicitly mentioned China […]
Governor of Bank Indonesia (BI) Perry Warjiyo gave the latest signal regarding the benchmark interest rate which is currently at its lowest level of 3.50 percent. According to Perry, the national economic condition is still conducive enough to continue the BI rate policy going forward. […]
Ex-terror convict Abu Bakar Ba’asyir, known as the spiritual leader of shadowy militant group Jemaah Islamiyah that aims to establish an Islamic state in Indonesia, did the unthinkable on Wednesday as he participated in the Independence Day ceremony at his boarding school in the Central […]
Both of United Kingdom and Germany also other Europe countries have been predicted they will go and meet energy crisis as the impacts of Russia’s invasion in Ukraine. The UK’s Green Party has proposed permanently nationalizing the country’s five major energy companies to ease the […]