The Ministry of Energy and Mineral Resources (ESDM) has cut several strategic projects. Trimming the project, in order to make budget savings next year.
ESDM Minister Ignasius Jonan said that next year his party would cut the budget ceiling by Rp. 291.59 billion so that it would be Rp. 7.3 trillion for the budget in the 2017 State Budget (APBN). This budget cut would not interfere with the performance of the Ministry of Energy and Mineral Resources.
"What is being cut is as much as possible not disturbing the development targets for 2017, particularly the ESDM sector,".
The cut budget is part of the savings and seeing the project work that will take place.
"What we can do about it is not ready, if possible, we will move the multiyear to 2018,".
For example, the budget cuts for the construction of a household gas network project of 15,500 household connections (SR) worth Rp. 100 billion. That way, the network to be built from 69,200 SR to only 53,700 SR next year. It consists of 10,000 SR of Musi Banyuasin in Sumatra, Muara Enim and Pali 10,000 SR, Pekan Baru Riau 3,200 SR and existing 4,000 SR, Bontang development for 6,000 SR and existing 4,000 SR, Bandar-Lampung 10,000 SR, Mojokerto 10,000 SR and Samarinda 4,500 SR. .
According to Jonan, the area built by the network must have an economical scale with a minimum development of 10,000 SR. In addition, the gas distribution must be available when the network has been completed.
Wianda Pusponegoro
Wianda Pusponegoro, Vice President for Corporate Communication at Pertamina, said that regarding the gas network, Pertamina has made a lot of additional investment.
"The additional budget in one location could be around Rp. 60 billion, the standard is for 4,600 connections,".
ESDM also cut the budget for converter kit fishermen by 4,400 units, from the original 28,400 units to 24,000 units, from Rp 100 billion to Rp 55 billion. Then cut the budget, coal gasification plant with a value of Rp. 49.7 billion.
Jonan also said that the Ministry of Energy and Mineral Resources will cut the budget for the waste generation to 39.29 billion, from the original Rp. 50 billion. Finally, the budget cut from savings in goods and capital expenditures at the Ministry of Energy and Mineral Resources unit amounted to Rp 52.6 billion. This budget cut is mainly for operational costs.
"We are trying to reduce Rp. 52 billion, this actual number could reach hundreds of billions," explained Jonan.
Kontan, Page-14, Friday, Oct 21, 2016
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