Government Assesses Continuation of Bontang Refinery Project

 

The Ministry of Energy and Mineral Resources (ESDM) said the project to build a new fuel oil (BBM) refinery in Bontang, East Kalimantan was being reviewed again. In fact, this refinery project is still listed in the list of National Strategic Projects in accordance with Presidential Regulation Number 109 of 2020.

Since PT Pertamina ended its contract with a partner in 2019, the Bontang Refinery is still being studied, "the Director of Development of the Oil and Gas Program as well as the Acting Director of Downstream Oil and Gas Business Development at the Ministry of Energy and Mineral Resources Soerjaningsih.

The contract in question is the frame work agreement / FWA agreement between Pertamina and its partner Overseas Oil and Gas LLC (OOG), an oil and gas company from Oman. Pertamina stated that it had not continued the agreement that became the basis for forming the joint venture company for the Bontang Refinery Project since February 2020.

 the Bontang Refinery Project

Soerjaningsih said that the continuation of the Bontang Refinery Project was also hampered by land problems. Originally the refinery would be built on government-owned land in Bontang.

"There is a problem that the location in Bontang which is owned by the government is insufficient and this is still a special study related to capital expenditure," he explained.

Nicke Widyawati

Pertamina has stated that it has not continued with the Bontang Refinery Project since the middle of last year. At that time, Pertamina's President Director Nicke Widyawati revealed that his party would re-evaluate the refinery projects being undertaken, namely the Bontang Refinery. This also means that the company will no longer continue the process of finding new partners for this refinery project.

"The Bontang refinery hasn't been built yet," said Nicke.

Nicke briefly explained that this step was taken after the demand for fuel oil decreased after the Covid-19 pandemic. The company sees that although it will still grow, the increase in fuel oil (BBM) consumption is not likely to be as high so far. Apart from that, the Company's partners in the Bontang Refinery Project declared their resignation.

"So we will count the refinery project again. Previously there were six refinery projects, four refinery upgrading projects, and two building new refineries, we are correcting this. We only built one new refinery and upgraded four existing ones, ”explained Nicke Widyawati.

On the other hand, in Presidential Regulation number 109 of 2020, the Bontang Refinery Project is still included in the list of National Strategic Projects. Referring to this regulation, refinery projects that are included in the National Strategic Project are the Tuban Refinery Project, repair and upgrading of existing refineries in Central Java, East Kalimantan, Riau, and South Sumatra, upgrading and development of the petrochemical industry in Balongan, West Java, and construction of green refineries in Cilacap, Central Java and in Plaju, South Sumatra.

Soerjaningsih continued, the review of the Bontang Refinery Project would not interfere with the security of fuel supply in the future. For diesel, he said that almost all national needs can be met from domestic refinery production. In fact, for avtur, national production in 2020 can then be exported. The potential for avtur exports will be even greater with the completion of refinery projects.

"Meanwhile, imports of gasoline (gasoline) are still very high. However, with the onstream (operation) of the Balikpapan refinery in 2022 and several other refineries, it still imports [gasoline] but it is not too big, ”he explained.

The Bontang refinery, which was designed to have a capacity of 300 thousand barrels per day (BPD), was scheduled to operate in 2026. Now, without the Bontang Refinery, Pertamina projects that its processing capacity will increase from 1 million bpd to 1.8 million BPD. In addition, fuel production capacity will also increase from 600 thousand bpd to 1.5 million bpd and petrochemical products from 44 thousand bpd to 258 thousand bpd. All refineries will also be able to process crude oil with a sulfur content of up to 2% and produce Euro V quality fuel oil (BBM).

Investor Daily, Page-10, Thursday, Jan 21, 2021

Investment Management of Pertamina Refinery Project

      Coordinating Ministry of Maritime and Pertamina Investment Management of Pertamina Refinery Project

The Maritime and Investment Coordinating Ministry will oversee all the refinery projects worked on by PT Pertamina (Persero). This follows the continued refurbishment of the Pertamina refinery project with its two partners, Saudi Aramco and Overseas Oil and Gas (OOG) Llc.

Deputy of Maritime Sovereignty and Energy of the Coordinating Ministry of Maritime Affairs and Investment Purbaya Yudhi Sadewa said the refinery project will continue. Regarding the withdrawal of two Pertamina partners from the national refinery project, this does not mean that the interest of international oil and gas companies to work on refinery projects is minimal.

"I am still optimistic that refinery investment will continue if it is well guarded," he said.

CPC Corporation - Taiwan

He recounted that he participated in overseeing one of the Pertamina refinery projects in Balongan, West Java Province, which is a refinery project that processes crude oil into petrochemical products. He continued to convince Taiwan Petroleum Corporation (CPC) of Taiwan to continue working with Pertamina. In fact, with the fall in oil prices, some companies actually withhold investment.

For information, at the end of last week, Pertamina and CPC signed the Head of Agreement / HoA for the development of the Integrated Petrochemical Industry Complex in Balongan. The petrochemical project is targeted to start operating in 2026. Purbaya said that the refinery project has many obstacles. One of them is the oil and gas mafia which complicates the construction of refineries.

oil and gas mafia

"I realize that investing in refineries is huge. We are dealing with oil and gas mafia. We are escorted. This can take place well, "he said.

Meanwhile, Energy Observer from Trisakti University Pri Agung Rakhmanto revealed, the investor's decision to invest in a project is very dependent on the return on investment from the project. If the return on investment offered falls within their criteria and there is a guarantee of certainty, investors will also work on the project.

"That's the principle. As long as there are no bright spots, investors will look for other investments, "he stressed.

He suggested, because Indonesia, which needed this investment, should be able to provide a guaranteed rate of return on investment for the refinery project. Moreover, the partnership between Pertamina and other oil and gas companies will facilitate the completion of the refinery project.

"If it can be a partnership, why should it be alone? If in business and investment, partnerships will not only strengthen but also for risk sharing, "explained Pri Agung.

Previously, in February, Pertamina said that it would not continue to work together on the development of the Bontang Refinery with OOG. Pertamina and OOG did not extend the framework agreement / FWA which formed the basis for the two companies to form a joint venture.

Pertamina also did not continue to cooperate with Saudi Aramco in the project of upgrading and upgrading the Cilacap Refinery. The reason is that the oil and gas company originating from Saudi Arabia is still focused on working on other projects, while Pertamina hopes to be able to work on the refinery project soon.

Still interesting

Purbaya added, oil and gas companies are still interested in working on refinery projects in Indonesia. One of them is that there is a company from China that plans to build a refinery. Unfortunately, Purbaya claimed not to know the details of the refinery project, including its capacity.

"There is a Chinese company asking for our approval to support the investment of US $ 6 billion-US $ 8 billion in the Batam, Riau Islands region," he said.

According to him, it is likely that the Chinese company will work on the refinery project itself, aka not cooperating with Pertamina. However, for the sale of refinery products, it is possible that the company will cooperate with Pertamina.

"But they say they can also sell international markets. Therefore the choice is in the Riau Islands Region, near international shipping lines, "said Purbaya.

In addition, Purbaya added that investment interest in the national refinery project was also conveyed by companies from the United Arab Emirates (UAE), namely the Abu Dhabi National Oil Company (ADNOC) and Mubadala Investment Company.

"So the enthusiasm and interest of investing in refineries is still very large," said Purbaya.

Referring to Pertamina's official statement, ADNOC agreed to learn more about the potential for developing the Integrated Petrochemical Refinery Complex in Balongan, West Java. Pertamina and Adnoc signed a memorandum of understanding at the end of last year.

the Tuban Refinery in East Java by Rosneft

While the Mubadala Investment Company is interested in becoming an investor in the Balikpapan Kalimantan Province Refinery Project worth the US $ 5.5 billion. In addition, Pertamina also continues to work on the Tuban Refinery in East Java with Rosneft Oil Company as its partner. 

    The two companies have formed joint ventures, namely PT Pertamina Rosneft Processing and Petrochemicals. Now the project has reached the stage of land acquisition and preparation of engineering design (general engineering design / DED).

Investor Daily, Page-10, Thursday, June 11, 2020.

Refinery Projects will remain in demand

The government is still optimistic that the oil and gas refinery project will still be attractive to foreign investors, even though a number of partners who have previously joined chose to resign due to the fluctuating pressure on the black gold price.

Overseas Oil and Gas LLC

One of the partners who have resigned is Overseas Oil and Gas LLC based in Oman, from the Bontang Refinery project in East Kalimantan Province, so that the project is currently suspended. In addition, Saudi Aramco has also recently withdrawn from the Cilacap Refinery project in Central Java Province.

Saudi Aramco

Deputy for Maritime Sovereignty and Energy Coordinating Ministry of Maritime and Investment Coordinating Ministry Yudhi Sadewa said he would investigate the withdrawal of Pertamina's partners in the Bontang Refinery project.

He acknowledged that low oil prices would make several countries withhold investment in advance. However, that does not mean that no one is interested in investing in a national refinery project. As an illustration, over the past year, the price of Indonesian crude oil (ICP) reached its lowest point in April 2020 at the US $ 20.66 per barrel and in May 2020 at the level of US $ 25.67 per barrel. Last year, the average ICP was the US $ 62.37 per barrel.

Purbaya revealed that Chinese investors were also interested in the refinery project in Batam, Riau Islands (Riau Islands).

"China will invest the US $ 5 billion to the US $ 6 billion in Batam. The Riau Islands ask for our support to support the investment, "he said.

However, he was unable to provide details on the capacity of China's investment plans in Batam.

"They say they can also go to the international market, therefore the choice is in the Riau Islands near the international shipping lane," he explained.

Purbaya is still optimistic that refinery investment will continue if it is properly guarded. He added that Abu Dhabi was also interested in building refineries in Balongan, West Java Province, and Dumai, Riau Province.

"Refinery investment has very large prospects," Purbaya said.

Previously, PT Pertamina (Persero) 's Megaprocessing and Petrochemical Processing Director Ignatius Tallulembang said that all Refinery Development Master Plan (RDMP) and Grass Root Refinery (GRR / new refinery) projects were still in the status of National Strategic Projects (PSN).

He added until now the entire refinery project construction process is still in accordance with the target. The breakdown includes, among others, Balongan Refinery which works in three phases, in phase 1 it has now entered the procurement auction process and is targeted to be onstream in 2022.

While for phase 2 studies are being carried out to increase its capacity which will be completed in September or October 2020 which will be followed by engineering studies.

CPC Corporation, Taiwan

For phase 3, Ignatius said, it was just agreed to cooperate with CPC partners from Taiwan related to petrochemical processing which would later integrate with existing refineries. Phase 3 is targeted for completion in 2026. Furthermore, at the Cilacap Refinery in Central Java, Pertamina is looking for new partners after Saudi Aramco decided to withdraw from cooperation in developing the refinery.

Double Impact

Ignatius asserted, although it requires a large investment, the refinery development can have multiple impacts on the economy. With a total investment of around US $ 48 billion if the project is completed, the refinery, which currently has a capacity of 1 million barrels per day, will increase to 2 million barrels per day so that fuel oil needs can be fulfilled without the need for imports.

Fahmy Radhi

     Gadjah Mada University's School of Energy Economics Fahmy Radhi believes the refinery business has a sustainable market certainty even though it requires a large investment fund with a long-term return on investment with a small return.

"I predict in early 2021, foreign investors will flock to Indonesia to invest in oil refineries," he said.

Fahmy believes that Pertamina must have a commitment that oil refineries are needed right now, so it needs a meeting to benefit both parties in the negotiation process. In addition, the government must provide a number of fiscal incentives and facilities in the process of land acquisition needed for refinery development.

Bisnis Indonesia, Page-14, Wednesday, June 10, 2020.

Pertamina-Aramco Officially Split

Pertamina is more focused on the construction or development of existing refineries. PT Pertamina (Persero) officially parted ways with Saudi Aramco in developing the Cilacap Refinery Development Master Plan (RDMP) mega-project. This decision was taken after Aramco sent a letter of resignation from the project.

Saudi Aramco

Pertamina Megaprocessing and Petrochemicals Director Ignatius Tallulembang said Saudi Aramco had resigned from the project after an agreement to review the cooperation ended in April 2020.

Nicke Widyawati

Ignatius conveyed, Aramco through his leadership sent a Letter to Pertamina's Managing Director Nicke Widyawati who informed Pertamina to proceed with the project without the oil company from Saudi Arabia. This is because Aramco is still focused on other things.

"They asked Pertamina to continue, meaning Aramco could not join the Cilacap Refinery construction. So, for the Cilacap Refinery no longer plans to work with Aramco," Ignatius said in a virtual conference.

Ignatius explained, Pertamina also continued to develop the Cilacap Refinery development project as well as looking for new partners to develop the project.

"Pertamina is in the process of finding a new partner, the land has been dealt while looking for opportunities that exist," Ignatius said.

Pertamina-Aramco Split alias Ambyar

In addition, after the withdrawal of Saudi Aramco there were plans to accelerate building a bio refinery or green refinery in the Cilacap Refinery. Ignatius said, the possibility for a bio refinery could be built faster and could operate in 2022 for a small scale.

Through the Cilacap Refinery development project, the original refinery capacity of 348 thousand barrels will increase to 370 thousand barrels per day (BPD). In addition, there will also be an increase in gasoline (gasoline) production from 59 thousand BPD to 138 thousand BPD and diesel production from 82 thousand BPD to 137 thousand BPD. Officially parting with Aramco, Ignatius said, Pertamina is now looking for new partners while developing the Cilacap Refinery independently.

"Pertamina is currently in the process of finding a new partner while looking for opportunities that we can build first. Then, prepare a business scheme by learning from the case of the Saudi Aramco partnership or other further cooperation," he said.

Overseas Oil and Gas LLC (OOG)

Pertamina had also previously been left by a partner in building a refinery. The State-Owned Enterprises (BUMN) in the oil and gas sector were left by Overseas Oil and Gas LLC (OOG), an oil and gas company originating from the state of Oman in the construction of the Bontang Refinery. 

    Without OOG, Pertamina has been forced to delay the construction of the Bontang Refinery. Ignatius explained, Pertamina would focus more on the construction or development of existing refineries as well as work on projects that had already prepared physical activities.

The previous Bontang refinery was part of Pertamina's six megaprojects consisting of four existing refinery developments, namely RDMP and two new refineries, Tuban and Bontang Grass Root Refinery (GRR). Ignatius emphasized that, despite being expensive, the construction of Pertamina's refineries had a multiplier effect on employment and national economic development.

RDMP and GRR also provide opportunities to improve the quality of fuel products (BBM) that are more environmentally friendly in accordance with international regulations and standards so that in the future a healthier Indonesian ecosystem will be realized.

Of the six refinery projects that were previously expected to be completed by Pertamina in 2022, only two refinery projects will be completed. First, Balongan Refinery in Indramayu, West Java, the first and second phases. Second, the Bio-Refinery in the Cilacap refinery in Central Java. He explained, the two projects to date have shown enormous progress.

Nicke Widyawati

Pertamina's President Director Nicke Widyawati said the schedule for the Cilacap Refinery development project which is a national strategic program or PSN will be reviewed and reviewed by Pertamina. 

Erick Tohir

   Previously, SOE Minister Erick Tohir warned that Aramco's negotiations with Pertamina regarding the valuation of the Cilacap Refinery should not be detrimental to the state. He said, bargaining is a natural thing, but don't let the Aramco and Pertamina negotiations harm the country.

Republika, Page-4, Saturay, June 6, 2020

Pertamina Assesses Transfer of Bontang Refinery Location

PT Pertamina (Persero) is reviewing the transfer of the location of the Bontang Refinery Project with a capacity of 300 thousand barrels per day (BPD) to Arun, Aceh or Kuala Tanjung, North Sumatra. The relocation of the refinery location because the company is targeting the international market.

Heru Setyawan, Director of Investment Planning and Risk Management, said that there were several locations considered by her to be the location of the construction of this new grass root refinery / NGRR. However, his party has not confirmed the chosen location because it is still conducting studies.

"We have plans to move the Bontang refinery, one of the locations from Bontang, Kuala Tanjung and Arun. So there is another study, "said Heru Setyawan.

Heru Setyawan explained, the consideration of moving the location of the Bontang refinery was because the existing infrastructure at the current location in Bontang, East Kalimantan was also used by other companies. On the other hand, the company is trying to optimize the use of existing assets. In addition, relocation also takes into account the availability of land and markets.

"Because Kuala Tanjung is close to the market, there is land. Because there is near the international market, then in Sumatra there is also a market, "said Heru.

Overseas Oil and Gas LLC (OOG)

Before deciding on the relocation of the Bontang Refinery, it still has to complete several agreements with its previous partners namely Overseas Oil and Gas LLC (OOG). He said he decided not to continue working with the oil and gas company from Oman.

"We propose to be revoked, terminated, but this must be an agreement between the two parties," he explained.

Therefore it will look for new partners to build this refinery project. While selecting partners, the Bontang Refinery work will continue. The selection of partners has already begun by Pertamina right now.

Previously, Pertamina Corporate Communication Vice President Fajriyah Usman revealed, his party no longer partnered with OOG in the Bontang Refinery Project because the framework agreement signed by the two companies had ended in December 2019. The Company no longer continued cooperation because OOG's performance was not in accordance with its commitments.

The operation of the refinery is still ongoing. This year it will complete the Bontang Refinery study location, feasibility study / FS, and search for partners.

The company also plans to start the general engineering design / GED engineering work in 2020. The latest development, OOG has signed a memorandum of understanding on the construction of the Bontang Refinery facility with PT Meta Epsi and PT Sanurhasta Mitra Tbk (MINA).

The two companies will build supporting facilities (outside battery limit / OSBL), such as pipes, water treatment facilities, and fabrication. In addition, OOG has conducted open bidding in Singapore to engineering companies with a good reputation for conducting a financial feasibility study on 30 April.

Pertamina plans to accelerate the Bontang Refinery Project by combining the front end engineering design / FEED package auction and engineering, procurement, and construction / EPC. On the other hand, the company monitors OOG's efforts in seeking project funding.

Luhut Binsar Pandjaitan

Because this project's investment of US $ 1015 billion will all be borne by partners. Maritime and Investment Coordinating Minister Luhut Binsar Pandjaitan had encouraged Pertamina to partner with oil and gas companies from the United Arab Emirates for the construction of the Bontang Refinery.

    At that time Luhut said that Pertamina's partners could have been replaced if the performance was not good. The reason is, even though the project was agreed upon several years ago, this project has not yet been completed.

ADNOC

"We want to replace the company from Oman, maybe with Abu Dhabi, ADNOC or other companies," said Ruhut Binsar Pandjaitan.

Investor Daily, Page-9, Thursday, March 5, 2020

Pertamina Assesses Refinery Development in Sumatra

PT Pertamina (Persero) is currently studying the construction of a refinery in Sumatra. This step was taken by Pertamina as an option to relocate the construction site of the new Bontang Grass Roof Refinery / GRR, East Kalimantan.

the Bontang GRR

Pertamina's Investment Planning and Risk Management (IMR) Director Heru Setiawan explained that the company is currently reviewing several location options that will become new refinery construction sites, namely in Kuala Tanjung North Sumatra and Arun in Aceh.

"There are several locations in the same area, Bontang, Kuala Tanjung, and Arun," Heru said.

Kuala Tanjung, Heru admitted, became one of the strongest candidates for the new Pertamina refinery replacing the Bontang refinery. Based on preliminary studies, Kuala Tanjung region Already meet management requirements as a refinery construction site. This starts from the market availability of refined products to the availability of future land for development.

"Because there are factors close to the market, the land is there. There is an international market," Heru said.

Overseas Oil and Gas LLC [OOG]

In addition, the site observer also considered the change in refinery development partners. Pertamina is no longer partnering with Omani oil and gas company Overseas Oil and Gas LLC [OOG]. Even so, according to Heru, before determining the location of Pertamina, it must first decide on the cooperation that had been established with OOG. Now, Pertamina is in talks to end the cooperation.

"We propose for the cancellation, but there must be an agreement between the two parties because of the MoU and others," he said.

Republika, Page-14, Tuesday, March 3, 2020

Pertamina Assesses Transfer of New Refinery Project Location

PT Pertamina (Persero) chose Kuala Tanjung in North Sumatra or Arun in Aceh as the location for the construction of a new Grass Root Refinery / GRR refinery replacing the Bontang refinery in East Kalimantan.

Pertamina's Investment Planning and Risk Management Director Heru Setiawan explained that one of the plans to relocate the project was due to consideration of the replacement of the new refinery development partner.

Overseas Oil and Gas (OOG) Llc

At present the partners who have signed a partnership in the Bontang GRR development project are an oil and gas company from Oman, Overseas Oil and Gas (OOG) Llc.

It is planned that Pertamina will move the GRR development project from Bontang in East Kalimantan to Kuala Tanjung or Arun in Aceh by cooperating with prospective new partners. 

     According to him, the two regions were chosen because they have aspects of land availability. In addition to the location of Kuala Tanjung and Arun, the company is considered closer to the international market.

Nicke Widyawati

Meanwhile, Pertamina's GRR project has so far not yet reached the construction stage. Previously, Pertamina President Director Nicke Widyawati acknowledged the option to replace partners in the construction of the Bontang refinery.

Nicke Widyawati

Nicke Widyawati said that his party was still looking for other partnership options considering that there were several things that prevented the previous option. Nicke said initial work was still being carried out while Pertamina re-elected partners.

Luhut Binsar Pandjaitan

Meanwhile Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan gave a signal that the development of the Bontang refinery project will involve investors from the United Arab Emirates.

"Partners in the East Kalimantan Bontang Refinery are very changeable. So later investors from Abu Dhabi can enter. "

Bisnis Indonesia, Page-23, Tuesday, March 3, 2020

Bontang Passion Refinery

    PT Pertamina (Persero) is projecting the construction of a new oil refinery or Grass Root Refinery Bontang can start 2 years ahead or by 2020. As the project manager, the SOE targets to complete this mega project in 2025.

    Director of Mega Pertamina Processing and Petrochemical Project Ardhy Mokobombang said the mega project of Grass Root Refinery Bontang will absorb 20,000 workers.

"We are trying to advocate for the Ministry of Manpower for training and certification of construction workers," he said.

    In the meeting, Ardhy explained, training and certification of construction workers will be a priority before the refinery operates. This move is said to be similar to that applied to the Refinery Development Master Plan (RDMP) Refinery V Pertamina Refinery in Balikpapan.

    Meanwhile, the refinery model in Taman City will be similar to the model in Tuban, which is processing crude oil to fuel at least 300,000 barrels per day. Meanwhile, PT Pertamina cooperates with companies from Oman, Overseas Oil and Gas LLC (OOG), and Cosmo Oil International Pte Ltd (COl) in the development of a subsidiary or trading arm of Cosmo Energy Group one of Japan's oil processing companies.

    

 Overseas Oil and Gas LLC and Cosmo Oil International Pte Ltd (COl)

    He said in this cooperation, Pertamina certainly did not participate in financing the development fund. However, 10% of the shares as participated in the consortium belong to the company.

    

 Cosmo Energy Group one of Japan's

   So, he said Pertamina still has the authority to control the business, including in supplying crude oil to the refinery. The investment value of this new refinery is worth the US $ 10 billion or around Rp130 ​​trillion. The construction of the refinery requires an area of ​​up to 500 hectares. Bontang City Government itself has prepared the land in the Village area Bontang Lestari.

"For Grass Root Refinery 400 hectares but investors are interested in the concept of the petrochemical industry. So we ask for 100 hectares next to the refinery, "he said.

    He explained that the initial phase of construction will begin with the signing of a framework work contract agreement with a consortium targeted for completion this week.

"Then from there, Pertamina will be Feasibility study [FS] up to next year. After that go into the stages of preparation engineering package "

    The existence of the Grass-Root Refinery will increase the number of refineries in the gas and condensate processing areas. Previously in the same area has been established gas processing plant owned by PT Badak and fertilizer owned Pupuk Kaltim.

Bontang Mayor Neni Moerniaeni

     Bontang Mayor Neni Moerniaeni said Bontang people are very welcome this project, Bontang, said Neni, 82% of the land has been certified.

"We are ready to support this project as soon as possible."

    Neni claims infrastructure in Bontang is also one step ahead of other regions, especially when compared to Tuban. The existence of Bontang in the heart of East Kalimantan is more complete with the existence of the Port of Special Industrial Area [KIK].

 
    Beyond that, the City Government and the House of Representatives (DPRD) of Bontang are also drafting two related legal rules, among them, the Regional Regulation of Spatial Detail Plan (RDTR) and the Regional Regulation of Lnduk, Spatial and Regional Plan (RTRW). The last regulation in the drafting was difficult, considering that 12 items were rejected by local businessmen.

    When confirmed, the Chairman of the Special Committee RTRW Bontang Muslimin said if the process is waiting for evaluation RTRW of the Ministry of Agrarian and Spatial (ATR).
 

"The process is expected to take 2 months has been running for a month. Perhaps March has come out, "said Neni also saw the existence of this new oil refinery is important to support the resilience and independence of domestic energy, including reducing dependence on the outside," said Muslimin.

REVISION of Regional Regulations

    East Kalimantan Provincial People's Representative Council targets the revision of regional regulations or Regional Government Regulations of PT Migas Mandiri Pratama will be completed within the next 3 months. The revision refers to the Minister of Energy and Mineral Resources Regulation No.37 / 2016 regarding Terms of Participating Internal 10% Supply on Oil and Gas Working Area particularly Article 3 letter A number 2Capital Ownership.

    Meanwhile, the proposal and ratification of this regulation change has actually been rolling since the end of 2017. PT Migas Mandiri Pratama (MPP) is a BUMD established by the Provincial Government of East Kalimantan based on East Kalimantan Regulation no. 11/2009 which aims to control and manage the potential of oil and gas, both in upstream and downstream business activities particularly related to the Mahakam Work Area.

    The revision of the Regional Regulation is needed for the East Kalimantan The Provincial Government which currently controls 99.75% of shares can control a 100% stake in the BUMD. Currently, 0.25% of the shares still belong to the Cooperative Corps of Employees of the Republic of Indonesia of East Kalimantan

    Speaker of the East Kalimantan Regional House of Representatives (DPRD), HM Syahrun said the Special Committee will invite PT Pertamina and related government parties to do the deepening of the material. On the one hand, Alung, as he is called, said that the management of this work area will have an impact on increasing the contribution of state revenue and foreign exchange of state and local revenue.
"Through Participating Interest 10%, estimates, East Kalimantan can get a minimum of Rp 2 trillion in a year," said Syahrun.

    Syahrun is optimistic that the revision target can be overtaken. Only two articles are revised. First, article 8, paragraph 1 and 2 on Employee Appointment and Dismissal is regulated in accordance with Law no. 13/2003 on Manpower and Company Regulations of PT MMP Kaltim.

Second, article 10 paragraph 1 verse 4 in accordance with the provisions of Minister of Energy and Mineral Resources Regulation no. 37/2016 article 3 letter A number 2.

Bisnis Indonesia, Page-9, Monday, Feb 5, 2018