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Tuesday, December 12, 2017

When the Balikpapan Entrepreneur Saves Hope



The expansion project of Pertamina Refinery Unit (RU) V Balikpapan, East Kalimantan, which was launched earlier this year, apparently made local businessmen anxious

So far, Breaking ground preparation has been done but until now, none of the local companies have been given the opportunity to compete as contractors in the mega project. This project lasted 2 years with a value of US $ 5 billion or around Rp 65 trillion.

"No single local company has been involved in the project," said Chief of Chamber of Commerce and Industry (CCI/Kadin) Balikpapan Kisser Arafat.

He seemed pessimistic that the mega project would be able to absorb the entrepreneurs and local workers as previously hailed by the central government.

"It's possible that a national company, or another company outside Balikpapan who will work on it entirely, we just become spectators or just become subcontractors." he continued.

Yasser rate with a minimal role, certainly difficult for a company to produce a significant effect on the region. Yaser gives an illustration, if only 5% of the value of the project involves a local company as a contractor, the impact can already be felt. That is, from Rp 60 trillion then at least there is a chance of Rp 3 trillion can spin within the region.

However, with time, Yasser said, every effort will be made to fight for the fate of local businessmen and workers who want to contribute positively to the construction of the 360,000 barrel refinery. Hearing or Hearing Meeting (RDP) with Commission VII of the House of Representatives of the Republic of Indonesia in charge of the field of mineral energy is included in the nearest agenda of Kadin Balikpapan.

"I've had this communication with Mr. Ihwan Datu Adam [member of DPR Rl from East Kalimantan], and he will welcome us."

The Kadin team plan will do a hearing to the House of Representatives in the near future, said the leader of Anugrah Group. Yasser sees that the competence of local businessmen and workers is no less competitive than those from outside the region.

According to him, if it is not prepared for human resources or the company, it would be self-conscious not to take part in a project that is expected to absorb about 25,000 more labor.

Kadin Balikpapan, he called, actively invited the participation of 50 entrepreneurs through various programs to increase competence, one of them through gathering.

"So that in time the RDMP [Refinery Development Masterplan Program] is running, we are ready to participate. Very regrettable, for example, if you have to bring 1000 welders from outside Balikpapan. "

Please note in the RDMP project in Balikpapan, Pertamina has established PT Wijaya Karya (WIKA) as the executor, and state-owned banks as a source of working capital financing.

As is known, the expansion project of the Pertamina refinery in Balikpapan consists of two stages, each targeted to be completed in 2019 and 2021. Faster 22 months than previously targeted.

CAPACITY

The capacity of the oil processing infrastructure is targeted to increase from 260,000 to 360,000 barrels per day. In addition to capacity, fuel products from the refinery will also be upgraded to emissions standards. From the original still Euro 2 to Euro 5. 5% of the value of the project, said Yasser will have a significant impact on Balikpapan economy.

"The value even exceeds APBD this year," he explained.

In addition to the House of Representatives, he claimed to have addressed this issue to the municipal government of Balikpapan and the House of East Kalimantan. Both, Yasser said, have the same commitment to engaging local firms in the project. Without such efforts, Pertamina's RDMP will not have a significant effect on the economy. Even with refinery operations later on.

Meanwhile, Minister of Energy and Mineral Resources (ESDM), Jonan Ignatius on the sidelines of the inauguration of the Jangkrik Field gas production facility in Handil Baru. Regional Kutai Kartanegara, previously confirmed, next month, Pertamina RDMP in Balikpapan must have entered the stage of groundbreaking. According to him, this megaproject is a commitment of the central government.

The ESDM Ministry has been written to President Joko Widodo in order to directly review the projects that are also implemented in some other areas.

The project's RDMP Project Coordinator Imam Sunarto recently confirmed that the construction process in the RDMP plant development plan will begin early next year. The company is currently preparing land for development.

Bisnis Indonesia, Page-9, Monday, Dec 11, 2017

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