Indonesia bolsters energy cooperation between nations through PT Pertamina (Persero), the state-owned Indonesian oil and gas company, inked a groundbreaking exploration and production agreement with Tanzania Petroleum Development Company (TPDC), a state-owned enterprise from Tanzania. This landmark collaboration was formalized during the official visit of President Joko Widodo (Jokowi) to Tanzania.
The collaboration was marked by the signing of a Memorandum of Understanding (MoU) between Nicke Widyawati, the President Director of PT Pertamina (Persero), and representatives from TPDC, witnessed by President Jokowi and Tanzanian President Samia Suluhu.
This MoU signifies the initiation of Pertamina’s collaboration in Tanzania, aiming to enhance hydrocarbon exploration and the entire crude oil value chain. Both entities will also explore potential partnership opportunities in the oil and gas sector in Tanzania, encompassing exploration, production, and gas pipeline projects.
Nicke remarked on the strategic energy partnership between TPDC and Pertamina, stating that it is a milestone that strengthens the ties between Tanzania and Indonesia, given that both TPDC and Pertamina are wholly owned state enterprises.
Through the MoU, both state-owned entities have agreed to collaborate in the upstream and downstream oil and gas sectors, including downstream investment opportunities in Compressed Natural Gas (CNG) stations and Mini Liquefied Natural Gas (LNG) supply.
Furthermore, the agreement includes capacity-building initiatives for TPDC employees, facilitating training and education opportunities in Indonesia. The signing event was attended by the subsidiary of Pertamina’s Upstream Subholding, PT Pertamina Internasional Eksplorasi dan Produksi (PIEP).
Positioned as a leader in the energy transition, Pertamina remains committed to supporting the Net Zero Emission 2060 target by driving impactful programs that align with the achievement of Sustainable Development Goals (SDGs). All these efforts resonate with the application of Environmental, Social & Governance (ESG) principles across Pertamina’s business lines and operations.
In a prior meeting, President Jokowi highlighted the discussions on trade and investment collaboration during his talks with President Samia Suluhu Hassan at the Dar Es Salaam State House, Tanzania.
Jokowi’s discussions included two main points. Firstly, he advocated for the establishment of a preferential trade agreement to optimize bilateral trade potential, which saw a notable 20.7% increase in 2022.
“Firstly, Indonesia encourages the establishment of a preferential trade agreement to further optimize the trade potential between our countries, which experienced a 20.7% increase in 2022,” stated Jokowi on August 22, 2023.
“Secondly, Indonesia aims to enhance investment in Tanzania, including the management of the Mnazi Bay gas block by Indonesian state-owned enterprises, as well as the conversion of natural gas into chemicals and fertilizers. This collaboration is strategically important and will fortify the partnership between developing nations,” continued Jokowi.
To safeguard and promote mutual investments between the two nations, Jokowi proposed the establishment of a bilateral investment treaty.
