Minister Arifin Tasrif of Energy and Mineral Resources met with Dutch Deputy Prime Minister Rob Jetten during his Netherlands visit, discussing investment opportunities in clean energy and inter-island electricity infrastructure in Indonesia. Arifin extended an invitation to Dutch companies to invest in these sectors, emphasizing the potential for cooperation in biofuels as well. Rob Jetten expressed eagerness for collaboration and outlined plans to involve Dutch companies, including those within the EU, to support Indonesia’s energy transition efforts financially and technically.
The meeting builds upon prior agreements, including an MOU signed in 2022 between Indonesia and the Netherlands on energy transition cooperation, alongside a Joint Study Agreement between Pertamina NRE and Pondera Development BV. This ongoing collaboration underscores both countries’ commitment to combat climate change and underscores the strategic importance of cross-border partnerships in advancing renewable energy initiatives.
The Indonesian Association of Geologists (IAGI) highlights the ongoing prospectivity of the Madura Strait oil field, emphasizing its potential for further exploration. Chairman STJ Budi Santoso underlines the basin’s tectonic setting within the East Java Basin, citing proven plays like the Kujung Carbonate and Ngimbang Clastics. Budi suggests deeper exploration in the Ngrayong Fm, despite acknowledging the associated drilling risks, to tap into untapped potential. Contractor Husky-CNOOC Madura Limited (HCML) plans to extend the oil and gas concession in the Madura Strait, seeking to capitalize on remaining prospects. The necessity of further exploration to bolster reserves post-2032 contract expiration. HCML adds expansion plans projecting increased production until 2027, followed by sustained levels until 2042.
The Upstream Oil and Gas Regulatory Task Force (SKK Migas) is currently awaiting the submission of an extension proposal for the Madura Strait contract from Husky-CNOOC Madura Limited (HCML), which initially planned to submit the request in the first quarter of 2024. Despite this delay, HCML is still finalizing its strategy for extending the oil and gas concession in the Madura Strait. Hudi Suryodipuro from SKK Migas noted that the current contract, effective since 2012 and expiring in October 2032, covers an area of 2,012.76 square kilometers, with HCML projecting the concession’s prospectivity until 2042. However, challenges loom as gas resources may diminish to a quarter of current estimates upon contract expiration, emphasizing the need for continued exploration and development efforts.
HCML’s Vice President for Operations, Perkasa Sinagabariang, highlighted the company’s ongoing internal discussions regarding the extension request, indicating plans for further exploration to augment reserves post-2032. With current peak gas production at 250 MMscfd, HCML aims to sustain production levels through its Long-Term Development Plan, projecting peak gas production nearing 600 MMscfd by 2027. However, forecasts predict a decline to 100 MMscfd by 2042, underscoring the importance of strategic planning and resource management. Through these efforts, HCML seeks to maintain its position as a leading gas producer in the East Java region amidst evolving energy dynamics in the Madura Strait.
The Indonesian government is collaborating with China and Singapore to attract investors for seaweed development projects, a key initiative in President Joko Widodo’s plan to transform the country into a developed nation by 2045. With an estimated potential value addition of US$11.8 billion, the project aims to tap into three potential areas: West Nusa Tenggara, Sulawesi, and Maluku. Learning from India’s advanced seaweed production, the government plans to launch a US$2 million pilot project next year, covering 50,000 hectares and employing 100 workers, with intentions to expand to 1.2 million hectares, creating jobs for up to 2,400 people if successful. This initiative not only fosters economic growth but also offers additional income opportunities, particularly for lobster farmers, aligning with the broader vision of job creation and sustainable economic development.
President Joko Widodo has appointed Investment Minister Bahlil Lahadalia as Chairman of the Task Force for accelerating self-sufficiency in sugar and bioethanol in Merauke regency, South Papua, as outlined in Presidential Decree No. 15/2024 issued on April 19, 2024. The Task Force, reporting directly to the President, comprises key ministers and officials, including Environment and Forestry Minister Siti Nurbaya Bakar and Agrarian and Spatial Planning Minister Agus Harimurti Yudhoyono. Their mandate involves facilitating land availability for sugarcane cultivation and providing stimulus to businesses, particularly in integrated sugarcane plantations with sugar, bioethanol, and biomass power plants.
President Jokowi’s plan to designate the Merauke food estate as a Special Economic Zone (SEZ) has gained momentum, focusing on rice and sugarcane production. Coordinating Minister for the Economy Airlangga Hartarto mentioned that the SEZ would cover a vast area, initially cultivating 200,000 hectares for rice and sugarcane, with future potential for additional crops. This initiative reflects the government’s strategic efforts to enhance food security and economic development in Papua.
Coal and electric vehicle company PT TBS Energi Utama Tbk (TOBA) – which 10% of shares are owned by Coordinating Minister for Maritime Affairs and Investment Luhut Panjaitan – has allocated between US$ 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.
