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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

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