Tuesday, October 15, 2024
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Executives from oil and gas companies gathered in Surabaya, Indonesia, for the Indonesia Exploration Forum (IEF) on October 14-15, 2024, to tackle rising oil consumption and stagnant production capacity. The forum aims to enhance exploration and accelerate the shift from discovery to production, supporting Indonesia’s Onward 2045 Vision for energy security. Dadan Kusdiana from the Ministry of Energy highlighted the need for collaborative efforts, especially in Eastern Indonesia, where 34 joint studies are underway

President-elect Prabowo Subianto will announce his Cabinet on October 20, 2024, after his inauguration with Vice President-elect Gibran Rakabuming Raka. Many ministers from outgoing President Jokowi’s administration are expected to stay. The new Cabinet may include 46 ministries, but the Nasdem Party will not have representatives.

Arief Satria, Rector of Bogor Agricultural University, indicated that developing Biodiesel B50, a blend of 50% biofuel from palm oil and 50% diesel, could necessitate 9.2 million hectares of new palm oil plantations to meet rising demand for crude palm oil (CPO). While the current B35 program uses 35% palm oil, the shift to B50 raises concerns about trade barriers due to stricter anti-deforestation laws in developed countries and Indonesia’s net zero emissions goals. Fiscal challenges also loom, as the biodiesel initiative relies on the Palm Oil Plantation Fund Management Agency, which may face budget strains.

The Financial Services Authority (OJK) is investigating PT Bank Pembangunan Daerah Jawa Barat (Bank BJB) over alleged corruption involving Rp200 billion in inflated advertising funds from 2021 to 2023. The Corruption Eradication Commission (KPK) is involved.

The Upstream Oil and Gas Regulatory Task Force (SKK Migas) signed a Production Sharing Contract (PSC) for two working areas in Sumatra and Sulawesi under a Cost Recovery scheme during the Indonesia Exploration Forum on October 14, 2024. Director General Dadan Kusdiana emphasized the government’s commitment to attracting investment in the upstream sector, with over 60 new oil and gas blocks prepared for the next five years. SKK Migas Head Dwi Soejipto noted the significant potential for reserve discoveries, aiming for oil production of 1 million barrels per day and gas of 12 billion cubic feet per day.

Several ministers from President Joko “Jokowi” Widodo’s administration are expected to retain their roles under President-elect Prabowo Subianto. On October 14, 2024, at least seven members of the Onward Indonesia Coalition met with Prabowo to discuss potential cabinet positions. Gerindra Party Secretary-General Ahmad Muzani noted that some current ministers may be reappointed due to their competence. Among those meeting with Prabowo were Minister of State Secretary Pratikno and Minister of Energy Bahlil Lahadalia, who hinted at continuing in a similar role.

Image: @antaranews.com

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.

Image: @ajaib.co.id

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.

Maritime security has remained a major concern for the administration of President-elect Prabowo Subianto, who will soon succeed President Joko “Jokowi” Widodo. […]
Digital transformation of PT Pertamina International Shipping (PIS), a subsidiary of state-owned energy company Pertamina, has gained appreciation and recognition from global shipping industry players upon its success in developing a claim module system in ship operations. […]
Several ministers from President Joko “Jokowi” Widodo’s administration are likely to retain their positions in the administration of President-elect Prabowo Subianto. At least seven members of the Onward Indonesia Coalition (KIM) were summoned to Prabowo’s residence on Jalan Kartanegara, Jakarta, on Monday, October 14, 2024 […]
President-elect Prabowo Subianto has pledged to eliminate poverty in Indonesia once he officially assumes office, citing measures to accelerate the downstream processing of the nation’s natural resources that would directly benefit the people. […]

New opportunities

State energy company PT Pertamina has set up partnership with two Japanese energy companies, JOGMEC and JAPEX, to develop Carbon Capture, Utilization, and Storage (CCUS) technology to contribute for the achievement of Indonesia’s net zero emission target. […]
PT PLN (Persero) and PT PLN Energi Primer Indonesia (PLN EPI) have signed a memorandum of understanding (MoU) to utilize company-owned land for the construction of gas infrastructure. […]
PT Pertamina Cepu, a subsidiary of upstream oil and gas company PT Pertamina Hulu Energi (PHE), discovered gas potential in the Tedong (TDG)-001 well located in North Morowali, Central Sulawesi. With a gas content of 15 million cubic feet per day (MMSCFD), and 185 barrels […]
Indonesia showcased its economic prowess at the 21st China-ASEAN Expo (CAEXPO) recently held at the Nanning International Convention and Exhibition Center (NICEC) in Nanning City, Guangxi Zhuang Autonomous Region, from September 24 to 28, 2024. […]
The Indonesia-Europe Business Forum (IEBF) 2024, held on Monday, October 7, 2024, produced seven memorandums of understanding (MoUs)/Letter of Intent (LoIs) on cooperation between Indonesian and European companies with a total transaction value of US$11.07 billion (Rp174 billion). […]
Indonesian Minister of Communication and Informatics, Budi Arie Setiadi, met with the United States Ambassador to Indonesia, Kamala Shirin Lakhdhir, at the ministry’s office in Jakarta on Thursday, September 26, 2024, discussing enhanced cooperation in the technology sector between both nations. […]
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 […]