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Wednesday, April 14, 2021

Land Acquisition Completed, Pertamina Continues the Tuban Refinery

 


    PT Pertamina (Persero) through Subholding Refining and Petrochemical, PT Kilang Pertamina Internasional (KPI), is continuing to prepare land for the Tuban Refinery Project, East Java. This step follows the completion of land acquisition belonging to residents who are sure to comply with applicable regulations. KPI Corporate Secretary Ifki Sukarya said the land acquisition for the Tuban Refinery Project has been completed. Currently, his party is continuing to work on the Tuban Refinery Project which is now in the early work stage.

"The clearing of the land is still around 328 hectares and the restoration of abrasion (restoration) covering an area of ​​20 hectares has been completed," said Ifki.

    Ifki explained the majority of affected residents had received reimbursement of funds from Pertamina for land acquisition for the Tuban Refinery Project. The land that has been acquired has been reached 99% of the target area of ​​377 hectares of residents' land. This procurement has gone through all the mechanisms stipulated by Law Number 2 of 2012 concerning Land Acquisition for Development for Public Interest.

    The law has regulated the procedures for land acquisition for refinery construction, namely planning, preparing, implementing, then releasing agency land. In the preparation stage, based on the results of the inventory and identification of land tenure, Pertamina has followed the procedures for assessing compensation in accordance with the provisions by appointing a Public Appraisal Service Office (KJPP) which is then determined through the local National Land Agency.

"KJPP is the one that assesses the land to be taken over," said Ifki.

    Ifki added, Pertamina could not intervene in the land appraisal process carried out by KJPP and other parties. Pertamina also has the principle that this land acquisition process does not harm the residents whose land is affected. In fact, Pertamina also provides education to residents so that they can manage the money from land replacement as well as possible.

"On average, residents own a large area of ​​land. The bigger the land area, the bigger the replacement money will be automatically received, ”he explained.

    Pertamina had stated that the land requirement for the refinery project and petrochemical facilities in Tuban reached around 800 hectares, where part of the land belongs to the community and partly under the Ministry of Environment and Forestry (KLHK). In May last year, the company completed the land acquisition belonging to the Ministry of Environment and Forestry. The Tuban Refinery Project is one of the National Strategic Projects mandated by the Government to Pertamina.

    With the existence of a refinery in Tuban, future fuel needs can be met from domestic refineries, thereby reducing imports. This project is expected to increase the oil processing capacity by 300 thousand barrels per day (BPD) and will produce Euro V standard fuel in the form of gasoline (gasoline) 80 thousand bpd, diesel oil  100 thousand BPD, and Avtur 30 thousand BPD. The Tuban refinery is integrated with a petrochemical refinery with a production capacity of 3,750 kilotons per year.


    The Tuban Refinery project was carried out by PT Pertamina Rosneft Processing and Petrochemicals (PRPP) which is a joint venture formed by Pertamina and Rosneft Oil Company since October 2016. This joint venture company will work on and manage the Tubang Refinery with 55% share ownership of Pertamina and Rosneft 45 %. The construction of the refinery will also absorb 35% of the domestic component level (TKDN), 20 thousand workers during construction, and 2,500 workers during operation. In addition, in the early stages of development, Pertamina absorbed 271 local Tuban workers.

Investor Daily, Page-10, Thursday, Feb 19, 2021

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