The Indonesian government has set targets for various projects in the Energy and Mineral Resources (ESDM) sector to be completed in 2023. However, some of these projects have encountered challenges, leading to delays and postponements to 2024. Here are some of the key projects in the ESDM sector facing challenges:
- Oil and Gas Projects:
Originally targeted for onstream production in 2023, there are 11 oil and gas projects with a total potential additional oil production of 19,077 barrels of oil per day (BOPD) and natural gas production of 454 million standard cubic feet per day (MMscfd).
One project, Forel Bronang operated by Medco, has been delayed to 2024, impacting production goals for this year.
- Smelter Projects:
The government aims to realize the development of 17 mineral processing plants or smelters in 2023 to support the downstream processing of mineral commodities.
Of the planned 17 smelters, 16 have been completed, supporting the government’s mineral beneficiation program.
- Coal Gasification Project:
The coal gasification project for the production of dimethyl ether (DME) by PT Bukit Asam and Pertamina has faced a setback as a replacement partner for Air Products, which withdrew from the project, has not been secured yet.
PT Bukit Asam is actively seeking a new partner, with a potential Chinese company being considered.
- Copper Smelter in Gresik (Freeport):
Freeport has been given a deadline for the completion of the copper smelter project in Gresik, East Java, by December 2023, as stated in the Special Mining Business License (IUPK) issued in December 2018.
Freeport plans to start operational activities by the end of May 2024 after completing pre-commissioning and commissioning phases.
The government continues to address these challenges, including seeking alternative partners for projects and ensuring compliance with project deadlines.
Delays have been attributed to factors such as the departure of investors, economic feasibility, and the impact of the COVID-19 pandemic. The government remains committed to advancing projects that contribute to the country’s energy and mineral resources development.
