Lower Gas Prices to Boost Industrial Sectors

    The government has cut gas prices in three industries to curb on going de industrialization and create a significant multiplier effect in the economy. Energy and Mineral Resources Ministry regulation No. 40/2016 issued on Tuesday set the gas prices at around US$6 per million British thermal units (mmbtu), down about one third from its current price, starting from Jan. 1, 2017.

    The lower prices, expected to enhance industrial productivityg will be enjoyed by the petrochemical, fertilizer and steel industries, with five state-owned companies, namely fertilizer producers Pupuk Kujang Cikampek, Pupuk Sriwidjaja Palembang, Pupuk lskandar Muda; petrochemical producer Petrokimia Gresik and steel manufacturer Krakatau Steel slated to benefit most.

     Apart from getting lower prices for gas as a raw material in their production, the state-owned companies will also obtain cheaper gas transportation rates. Petrokimia Gresik will see its transportation fees decline to $0.5 per mmbtu, from $0.84, on the Pagerungan-Porong-Gresik-PKG toll roads, while Krakatau Steel will pay $0.3 per mmbtu, ,down from $ 0.6 per mmbtu, for the Cilamaya-Citarik-Tegal- Gede-Nagrak-Bitung-Cilegon toll roads.

    Energy and mineral resources deputy minister Arcandra Tahar said the reduced prices would have a positive effect on the domestic manufacturing sector. At around $9 per mmbtu, lndonesia’s gas price is much higher than most of its Southeast Asian neighbors. Gas costs approximately $4 per mmbtu in Malaysia and Singapore.

    Business players have long voiced their concern over such high gas prices as they erode the competitiveness ofthe local manufacturing industry, the contribution of which to economic growth has gradually dwindled in the past decade. Industry Minister Airlangga Hartarto recently said the economic benefit of more affordable gas prices could amount to Rp 31 trillion ($2.39 billion) if prices were slashed to $ 4 per mmbtu, with an additional distribution cut of $1.50 to $2.

    He added that with economical gas prices, the three industries, along with seven other industries, would contribute around Rp 1,200 trillion, or 10 percent of the gross domestic product (GDP) as costs fell. The Energy and Mineral Resources Ministry previously passed a regulation that allowed seven less gas-reliant industries, including textiles, pulp and paper, ceramics and latex, to obtain an additional price cut of $2 per mmbtu if gas prices climb higher than $6 per mmbtu.

    Meanwhile, ReforMiner lnstitute researcher Pri Agung Rakhmanto said the new lower gas rates would not have a significant effect on the country’s economy as the coverage would be limited. “The price reduction isn’t significant and only applies to three industries. So, it has yet to be in accordance to President Jokowi’s instruction to lower gas prices to around $5 to $6 for all industries,” Pri said. “Nonetheless we still have to applaud it as it shows the commitment ofthe government, especially the Energy and Mineral Resources Ministry, to make it really happen in the near future,” he added.

IN INDONESIAN

Harga Gas rendah untuk Meningkatkan Sektor Industri

    Pemerintah telah memotong harga gas di tiga industri untuk mengekang untuk pergi de industrialisasi dan menciptakan multiplier effect yang signifikan dalam perekonomian. Energi dan Peraturan Sumber Daya Mineral Nomor 40/2016 yang dikeluarkan pada Selasa menetapkan harga gas sekitar US $ 6 per juta British thermal unit (mmbtu), turun sekitar sepertiga dari harga saat ini, mulai dari 1 Januari 2017.

    Harga yang lebih rendah, diharapkan dapat meningkatkan productivityg industri akan dinikmati oleh industri petrokimia, pupuk dan baja, dengan lima perusahaan milik negara, yaitu produsen pupuk Pupuk Kujang Cikampek, Pupuk Sriwidjaja Palembang, Pupuk lskandar Muda; produsen petrokimia Petrokimia Gresik dan produsen baja Krakatau Steel dijadwalkan untuk mendapatkan keuntungan yang paling.

    Selain mendapatkan harga yang lebih rendah untuk gas sebagai bahan baku dalam produksi mereka, perusahaan milik negara juga akan mendapatkan tarif transportasi gas lebih murah. Petrokimia Gresik akan melihat biaya transportasi menurun menjadi $ 0,5 per mmbtu, dari $ 0,84, di jalan-jalan tol Pagerungan-Porong-Gresik-PKG, sementara Krakatau Steel akan membayar $ 0.3 per mmbtu,, turun dari $ 0.6 per mmbtu, untuk Cilamaya-Citarik jalan tol -Tegal- Gede-Nagrak-Bitung-Cilegon.

    Energi dan sumber daya mineral wakil menteri Arcandra Tahar mengatakan harga dikurangi akan memiliki efek positif pada sektor manufaktur dalam negeri. Pada sekitar $ 9 per mmbtu, harga gas lndonesia adalah jauh lebih tinggi daripada sebagian besar tetangga di Asia Tenggara. Gas biaya sekitar $ 4 per mmbtu di Malaysia dan Singapura.

    Pemain bisnis telah lama menyuarakan keprihatinan mereka atas harga gas yang tinggi seperti mereka mengikis daya saing ofthe industri manufaktur lokal, kontribusi yang untuk pertumbuhan ekonomi secara bertahap berkurang dalam dekade terakhir. Menteri Perindustrian Airlangga Hartarto baru-baru ini mengatakan manfaat ekonomi dari harga gas yang lebih terjangkau bisa mencapai Rp 31 triliun ($ 2.390.000.000) jika harga disayat menjadi $ 4 per mmbtu, dengan memotong distribusi tambahan $ 1,50 menjadi $ 2.

    Dia menambahkan bahwa dengan harga gas yang ekonomis, tiga industri, bersama dengan tujuh industri lainnya, akan memberikan kontribusi sekitar Rp 1.200 triliun, atau 10 persen dari produk domestik bruto (PDB) sebagai biaya turun. Energi dan Sumber Daya Mineral sebelumnya mengeluarkan peraturan yang memungkinkan tujuh industri gas-bergantung kurang, termasuk tekstil, pulp dan kertas, keramik dan lateks, untuk mendapatkan potongan harga tambahan dari $ 2 per mmbtu jika harga gas naik lebih tinggi dari $ 6 per mmbtu.

Sementara itu, ReforMiner lnstitut peneliti Pri Agung Rakhmanto mengatakan tarif gas baru yang lebih rendah tidak akan memiliki dampak yang signifikan terhadap perekonomian negara sebagai cakupan akan dibatasi. "Penurunan harga tidak signifikan dan hanya berlaku untuk tiga industri. Jadi, itu belum sesuai dengan instruksi Presiden Jokowi untuk menurunkan harga gas untuk sekitar $ 5 sampai $ 6 untuk semua industri, "kata Pri. "Meskipun demikian kami masih harus bertepuk tangan karena menunjukkan komitmen tersebut yang pemerintah, terutama Energi dan Sumber Daya Mineral, untuk membuatnya benar-benar terjadi dalam waktu dekat," tambahnya.

Jakarta Post, Page-13, Thursday, Dec,8,2016

Indonesia Harus Ubah Skema Fiskal Kontrak Migas

    Indonesia Petroleum Association (IPA) meminta pemerintah untuk memperkuat skema fiskal dalam kontrak migas yang ditawarkan kepada perusahaan migas. Hal ini guna" memastikan agar investasi migas di Indonesia kembali bergairah sehingga mendorong
pertumbuhan ekonomi nasional. Presiden IPA Christina Verchere mengatakan, di masa lalu, sektor energi merupakan penyumbang terbesar penerimaan bagi Indonesia.

    Ke depannya, Indonesia perlu memastikan apakah hal tersebut akan dipertahankan ataukah sektor energi akan dijadikan pendorong pertumbuhan ekonomi. Hal ini menjadi tantangan sektor migas ke depannya. “Kalau untuk pendorong pertumbuhan ekonomi, dibutuhkan skema fiskal (fiscal term) yang lebih memadai," kata dia. Seperti apa skema fiskal ini, Christina enggan memaparkan. Menurutnya, skema fiskal bisnis migas di setiap negara merupakan wewenang dari pemerintah negara masing-masing.

    Apalagi, skema fiskal ini disusun dengan mengikuti regulasi yang berlaku dan kondisi sumber daya migas di setiap negara. Direktur IPA Tenny Wibowo juga menekankan hal yang sama. Dengan menurunkan harga minyak yang sangat drastis dalam dua tahun ini, ukuran cadangan migas yang dapat dikembangkan secara ekonomis menjadi terbatas.

    Hal ini mengingat penerimaan seluruh perusahaan migas di dunia terpangkas sehingga dana yang tersedia untuk investasi juga berkurang. “Ini harus jadi perhatian. Kalau iklim investasi kurang bagus, saya khawatir nantinya berkurang (dana) yang ditanamkan di Indonesia,” kata dia. Hal lain yang dibutuhkan investor, adalah kepastian. Bisnis migas membutuhkan modal yang cukup besar. Tak hanya itu, bisnis ini menghadapi ketidakpastian dari kondisi atau isi reservoir migas yang akan dibor.

    Karenanya untuk mengurangi resiko, dibutuhkan kepastian regulasi yang bisa dijadikan dasar dalam hitungan keekonomian proyek. “Perubahan regulasi akan berdampak pada skema fiskal yang telah berlaku dalam kontrak migas,” jelasnya. Christina melanjutkan, IPA mengapresiasi langkah pemerintah untuk memperbaiki iklim investasi migas ini. Sepanjang tahun ini, IPA dan pemerintah disebutnya menjalin komunikasi yang intens guna membahas sejumlah masalah dan regulasi guna mempermudah bisnis migas di Indonesia.

    Beberapa hal yang dibahas ini mencakup revisi Peraturan Pemerintah No 79 Tahun 2010 terkait biaya investasi yang dapat dikembalikan (cost recovery), tata kelola gas, pengembangan lapangan migas di laut dalam, penyederhanaan perizinan, dan revisi Undang~Undang No 22 Tahun 2001 soal migas.

    Bahkan, IPA juga mulai diajak membahas penerapan kontrak dengan skema gross split pada migas konvensional. “Gross split memang akan menyederhanakan proses bisnis. Tetapi apa yang dicari investor adalah sistem regulasi yang dpat diprediksi dan skema fiskal yang menarik. Skema fiskal ini sama pentingnya dengan simplifikasi proses bisnis," jelas
Christina. Ke depannya, IPA akan terus berkomunikasi dengan pemerintah.

    Utamanya IPA akan membahas beberapa regulasi yang baru diterbitkan oleh pemerintah. Salah satunya beleid yang mewajibkan perusahaan migas melepas sebesar 10% hak partisipasinya ke pemerintah daerah. Terkait tren investasi migas ke depannya, Christina mengaku tidak dapat menjawabnya lantaran rencana kerja dan anggaran (work plan and budget/ WP&B) masih dibahas antara perusahaan migas dan Satuan Kerja Khusus Pelaksana Kegiatan Usaha Hulu Minyak dan Gas Bumi (SKK Migas).

    Namun, tahun depan disebutnya akan menjadi tahun yang menarik mengingat OPEC baru saja memutuskan untuk memangkas produksi. Namun, dia belum dapat memprediksi dampak dari pemotongan produksi OPEC. Dari keputusan tersebut, perlu dilihat terlebih dahulu kapan pemangkasan produksi ini terjadi dan bagaimana respon investasi dari pasar. “Karena kalau ada respon, maka pasokan akan kembali membesar, dan harga akan kembali turun. Jadi perlu diperhatian mana yang terjadi lebih cepat,” ujar Christina.

    Menurut data SKK Migas, investasi migas di Indonesia terus meningkat selama 2010-2013. Pada 2010, investasi migas tercatat sekitar USS 11 miliar. Angka ini kemudian naik menjadi sekitar USS 14 miliar pada 2011, USS 17 miliar pada 2012, dan mencapai USS 18 miliar pada 2013. Setelahnya, investasi migas langsung terpangkas begitu harga minyak mulai turun pada akhir 2014. Pada 2014, investasi migas tercatat masih di kisaran US$ 18 miliar. Namun pada tahun lalu, investasi migas terpangkas signifikan menjadi sekitar USS 14 miliar saja. Sementara pada tahun ini, realisasi investasi migas diprediksi hanya akan mencapai US$ 11,4 miliar.

IN ENGLISH

Indonesia Must Change Fiscal Scheme of Oil and Gas Contracts

    Indonesian Petroleum Association (IPA) has asked the government to strengthen fiscal schemes in the oil and gas contracts offered to oil and gas companies. This is to "ensure that oil and gas investment in Indonesia back alive so as to encourage
national economic growth. IPA President Christina Verchere said, in the past, the energy sector is the largest contributor to the Indonesian acceptance.

    In the future, Indonesia needs to ascertain whether it will be sustained or will be used as the energy sector is driving economic growth. This is a challenge to the future of oil and gas sector. "If for driving economic growth, needed scheme fiscal (fiscal term) a more adequate," he said. Like what scheme this fiscal, Christina was reluctant to explain. According to him, the scheme fiscal oil and gas business in every country is the duty of the government of each country.

    Moreover, the fiscal scheme is structured to follow the existing regulations and conditions of oil and gas resources in each country. IPA Director Tenny Wibowo also stressed the same thing. By lowering oil prices drastically in the past two years, the size of oil and gas reserves that can be developed economically limited.

    This is considering the wide acceptance in the world oil and gas companies trimmed so that the funds available for investment are also reduced. "This should be a concern. If the investment climate is not good, I worry later reduced (funds) invested in Indonesia, "he said. Another thing that is required of investors, is a certainty. Oil and gas business requires substantial capital. Not only that, these businesses face the uncertainty of the condition or contents of oil and gas reservoirs to be drilled.

    Thus, to reduce the risk, it needs regulatory certainty that can be used as a basis in a matter of economics of the project. "Regulatory changes will have an impact on the fiscal scheme that has prevailed in the oil and gas contracts," he explained. Christina continued, IPA appreciates the government's measures to improve the investment climate of this gas. Throughout this year, the government calls the IPA and establish intense communication to discuss a number of issues and regulations in order to facilitate oil and gas business in Indonesia.

    Some of the points discussed include the revision of Government Regulation No. 79 Year 2010-related investment costs can be refunded (cost recovery), governance gas, development of oil and gas fields in the deep ocean, simplification of licensing, and the revision of Law ~ Law No. 22 Year 2001 about oil and gas.

    In fact, the IPA also began to be invited to discuss the implementation of contracts with gross schemes split on conventional oil and gas. "Gross split would indeed simplify business processes. But what investors are looking for is a regulatory system that dpat predictable and attractive fiscal scheme. This fiscal scheme is as important as the simplification of business processes, "explains Christina. Looking ahead, the IPA will continue to communicate with the government.

    Primarily IPA will discuss some of the new regulations issued by the government. One is a regulation that requires companies to release gas by 10% equity participation to local governments. Trends related to future oil and gas investment, Christina admitted, could not answer because of the work plan and budget (work plan and budget / WP & B) is still being discussed between the oil company and the Special Unit of Upstream Oil and Gas (SKK Migas).

    However, next year calls will be an interesting year in view of OPEC recently decided to cut production. However, he has not been able to predict the impact of OPEC production cuts. Of the decision, it should be seen first production cut when this happened and how the response of investment from the market. "Because if there is no response, then the supply will return to grow, and the price will come back down. So need to be concerned whichever occurs sooner, "says Christina.

    According to data from SKK Migas, oil and gas investment in Indonesia continues to increase during 2010-2013. In 2010, oil and gas investments recorded about US $ 11 billion. This figure rose to around US $ 14 billion in 2011, USS 17 billion in 2012 and reach US $ 18 billion in 2013. Thereafter, the oil and gas investment immediately trimmed as oil prices began to fall in late 2014. In 2014, oil and gas investments were recorded in the range US $ 18 billion. But in the past year, oil and gas investment was cut significantly to around US $ 14 billion alone. While this year, predicted the realization of oil and gas investment will only reach US $ 11.4 billion.

Investor Daily, Page-9, Thursday, Dec,8,2016

Waiting for Uncle Sam's Response

       With the agreement to cut crude oil production to an average of 33.25 million barrels per day (BPD) next year by a number of OPEC members, it is hoped that there will be an improvement in crude oil prices in 2017.

    Some analysts even estimate that the 1.2 million BPD cut in crude oil production will increase prices to more than US$ 50 per barrel on average next year. However, the increase in crude oil prices to this level could also trigger the recovery of unconventional oil production (tight oil) in the United States.

    If this happens, it is not impossible, production cuts will be in vain because the threat of overproduction lurks again. The US Energy Information Administration/EIA also admits that there is a risk of recovery of rights oil in the US if the price of oil exceeds US$ 50 per barrel.

    In the Short-Term Energy Outlook published on Tuesday (12/6/2017) local time, the EIA revealed that in addition to the agreement to cut oil production by OPEC members, a number of non-OPEC oil producers are now also paying attention to holding back or cut production.

    The plan, on Saturday (Dec 12) in Vienna Austria, there will be a meeting between OPEC and non-OPEC to discuss production cuts and non-OPEC countries which are targeted to reach an agreement to cut as much as 600,000 BPD.

"If the production cut deal contributes to raising prices above $50 per barrel in the months ahead, this will prompt a return to increased supply of US tight oil sooner than expected," the EIA report said.

    Based on the report, the price of crude oil reaching the level of US$ 50 per barrel will increase investment by a number of US oil producers, especially those operating in the Permian Basin. 

    In fact, the report also estimates that if crude oil prices can recover by exceeding US$ 50 per barrel, it will boost the supply of US Tight Oil in other regions, not only in the Permian Basin. In addition, if this scenario starts, then non-OPEC oil producers that do not participate in the OPEC production cut plan, will also increase their supply.

    An increase in supply from US tight oil is not impossible. Moreover, US President-elect Donald Trump has a discourse that he wants to implement US energy independence policies and create greater jobs for US citizens. It is undeniable that the return to high production of tight oil, which is characterized by a large number of drilling and lower 48 US states outside Alaska and Hawaii, will require a large workforce.

    However, drilling for the right oil and shale gas using the fracking technique also cannot be separated from the attention of the US public, especially regarding the sustainability of water reserves so resistance appears to be rejected. However, until now there is no certainty as to what kind of policy Donald Trump will take regarding crude oil production and the global community is still waiting until the president-elect is sworn in in January 2017.

Donald Trump

    However, the continued increase in global crude oil supply next year is likely to hold back a number of agreements to increase global oil inventories until 2018. Globally, inventory development next year will average 400,000 BPD.

"Although crude oil production will be ready to enter the market when global oil inventories are at high levels, global economic data shows more positive expectations than before," the report said.

    The EIA report projects that there will be cuts in US crude oil production throughout 2017, though only by 100,000 bpd to 8.8 million bpd. Meanwhile, so far this year, US crude oil production is estimated to reach 8.9 million BPD. Whereas in 2015, US crude oil production reached 9.4 million BPD.

    Meanwhile, OPEC crude oil production is expected to be in the range of 33.2 million BPD next year. Apart from production cuts, there are also a number of problems, such as Nigeria's crude oil supply which is projected to weaken in line with militant attacks on oil infrastructure.

    Not only that but Libya is also projected not to reach an agreement in the short term with the Zintani militants who control the pipeline and transportation of crude oil from their large fields, including El Sharara and El Feel. However, in November, there was an increase in production, although not significantly, which almost reached 600,000 BPD. In November, a number of offshore oil fields in the North Sea Atlantic region such as England and Norway have been completed from the routine maintenance schedule.

    As a result, collective production from the North Sea increased by 100,000 BPD in November. The increase from the North Sea region, in the short term could weaken the price of Brent oil if it is with crude oil from the Middle East.

"With relatively lower shipping costs, weaker Brent oil prices will make crude oil produced from the Atlantic basin more competitive for Asian refineries, which are traditional markets for Middle Eastern oil producers," the report said.

    EIA estimates that the average Brent oil price so far this year will be at the level of US$ 43 per barrel. while the average Brent oil price next year is projected to reach US$ 52 per barrel. Meanwhile, the price of oil on the West Texas Intermediate (WTI) market next year is estimated to be US$ 1 per barrel lower than the price of Brent oil. So, will Trump pump more right oil next year to create more jobs? Or will you participate in pushing up oil prices by holding back production? Let's just wait.

Bisnis Indonesia, Page-16, Thursday, Dec 8, 2016

Kontraktor Minta Perbaikan Syarat Fiskal

    Kontraktor minyak dan gas bumi meminta pemerintah dapat menciptakan kepastian regulasi dan perbaikan syarat-syarat fiskal dalam kegiatan produksi dan eksplorasi migas pada tahun depan guna memperbaiki investasi sektor tersebut. Presiden Indonesian Petroleum Association (IPA) Christina Verchere mengatakan, asosiasi prddusen minyak itu belum bisa memprediksi sampai kapan harga minyak tetap rendah. Menurut perkiraan Wood Mackenzie, bila para anggota organisasi negara pengekspor minyak (OPEC) berkomitmen memangkas produksi minyak 1,2 juta barel per hari (bph), harga minyak akan naik menjadi US$ 55-US$ 60 per barel pada 2017.

    Jika anggota OPEC tak menjalankan komitmen itu, harga minyak berpotensi melemah ke US$ 40 per barel. Untuk menggenjot investasi hulu migas di Indonesia, katanya, pemerintah perlu mengubah persyaratan fiskal dan penghapusan sejumlah faktor penghambat investasi. Menurutnya, perusahaan secara global  melakukan restrukturasi kemampuan investasi dan memilih ulang prioritas investasi. Beberapa proyek yang membutuhkan biaya dan risiko tinggi, katanya, akan menjadi pertimbangan ketika harga minyak rendah.

    Dengan demikian, dia menyebut dua hal seperti kepastian usaha dan persyaratan fiskal (fiscal terms) menjadi akan menentukan nasib industri hulu migas. Pemerintah, memang melakukan sejumlah upaya untuk membuat investasi hulu migas semakin menarik. Namun, hingga saat ini belum terlihat membawa angin segar terhadap industri hulu migas. Sebagai contoh, lelang wilayah kerja yang dilakukan pada pertengahan tahun ini ternyata belum mendapat respons positif dari pelaku usaha. Selain itu, munculnya peraturan baru yang membuat pelaku usaha berpikir ulang apakah investasi yang membutuhkan waktu pengembalian modal yang panjang bisa terjamin.

    Pasalnya, kontrak kerja sama berlaku selama 30 tahun dan diharapkan tak ada perubahan secara mendasar yang bisa mengganggu kestabilan usaha selama kontrak berjalan. Beberapa hal baru muncul seperti penawaran saham partisipasi (paniciparing interest/PI) 10% atas wilayah kerja baru atau yang habis masa kontraknya kepada Badan Usaha Milik Daerah, pengubahan formula harga gas hulu untuk beberapa industri hingga rencana pemerintah menerbitkan beleid guna mengatur kontrak bagi produksi (production sharing contract/PSC) gross split (tanpa cost recovery) yang sedang dibahas secara intens.

    Oleh karena itu, pihaknya menginginkan agar pemerintah dan pelaku usaha bisa berkomunikasi dengan baik agar investasi hulu pulih. Untuk tahun depan, kami tunggu perubahan yang bisa meningkatkan iklim investasi." Realisasi investasi hulu migas ditarget menyentuh US$ 11,4 miliar pada akhir 2016 atau lebih rendah dan target US$12,05 miliar. Padahal, target tersebut telah direvisi dan lebih rendah dan target yang dipatok sebelumnya US$ 17,21 miliar. Deputi Bidang Pengendalian Keuangan SKK Migas Parulian Sihotang mengatakan, target investasi tidak akan tercapai karena masih terdampak rendahnya harga minyak.

IN ENGLISH

The Contractor Ask Repair Fiscal Terms

    Oil and gas contractor asked the government to create regulatory certainty and improved fiscal terms in oil and gas exploration and production activities in the next year in order to improve the sector investment. President of the Indonesian Petroleum Association (IPA) Christina Verchere said the association prddusen oil it could not predict how long oil prices remain low. According to Wood Mackenzie estimates, if the members of the organization of Petroleum Exporting countries (OPEC) is committed to cut oil production of 1.2 million barrels per day (bpd), the oil price will rise to US $ 55-US $ 60 per barrel in 2017.

    If OPEC members do not carry out this commitment, the oil price will weaken to US $ 40 per barrel. To boost the upstream oil and gas investment in Indonesia, he said, the government needs to change the fiscal requirements and the elimination of a number of factors inhibiting investment. According to him, the company's global investment capabilities undertake restructuring and re-select investment priorities. Several projects are costly and high risk, he said, will be taken into consideration when oil prices are low.

    Thus, he mentioned two things like business certainty and fiscal terms (the fiscal terms) to be will determine the fate of upstream oil and gas industry. The government, indeed made efforts to make oil and gas upstream investments more attractive. However, until now this has not been seen to bring fresh air to the upstream oil and gas industry. For example, the auction area of ​​work done in the mid of this year was not yet received a positive response from businesses. In addition, the emergence of new rules that make businesses rethink whether the investments require long payback time can be guaranteed.

    Because the cooperation contract is valid for 30 years and is expected no fundamental changes that could destabilize the business during the contract runs. Some new things appear like deals participation shares (paniciparing interest / PI) 10% of the working area of ​​new or out of contract to the Regional Owned Enterprises, changing the pricing formula of gas upstream for some of the industry to the government's plan to publish a regulation to govern the contract for production ( production sharing contract / PSC) gross split (without cost recovery) is being discussed intensely.

    Therefore, it wants the government and businesses can communicate well in order to recover the investment upstream. For next year, we are waiting for changes that could improve the investment climate. "The realization of upstream oil and gas investment is targeted to reach US $ 11.4 billion at the end of 2016 or lower and the target of US $ 12.05 billion. In fact, the target has been revised and the lower and previously set target of US $ 17.21 billion. Deputy Financial Control Parulian Sitohang SKK Migas said the investment targets will not be achieved because it is still affected by low oil prices.

Bisnis Indonesia, Page-30,Thursday, Dec,8,2016

Borong 7 PROPER Emas, Pertamina Buktikan Komitmen Pengelolaan Lingkungan

    Ketersediaan listrik belum sepenuhnya dinikmati warga di seluruh wilayah Indonesia. Warga Desa Tampur Paloh di Kecamatan Simpang Jernih, Aceh Timur termasuk Salah satunya. Desa Tampur Paloh merupakan salah satu desa yang berada di sekitar wilayah operasi PT Pertamina EP Asset 1 Field Rantau, Aceh; Lokasi desa yang terisolasi membuat warga harus membiasakan hidup tanpa listrik. Sarana pendidikan berupa gedung sekolah juga masih minim. Sehari-hari, mayoritas penduduk setempat menggantungkan mata pencaharian pada kegiatan penebangan pohon. Kondisi ini menggerakkan Naufal Raziq untuk berinovasi demi memperbaiki keadaan.

    Pelajar MTSN Kecamatan Langsa Lama, Kota Langsa ini memanfaatkan pohon kedondong sebagai sumber energi listrik. Dengan dukungan PT Pertamina EP Asset 1 Field Rantau, pengembangan inovasi ini dibarengi gerakan menanam 1.100 pohon energi yang menerangi 30 rumah dan 7 fasilitas umum. DesaTampur Paloh juga makin berkembang dengan dibangunnya Madrasah Aliyah (High School Islamic) sehingga anak-anak tidak perlu lagi menempuh jarak puluhan kilometer untuk menikmati pendidikan. Sementara di pesisir utara Indramayu, Pertamina Refinery Unit VI Balongan, Jawa Barat berupaya menyelamatkan kawasan pantai yang tergerus abrasi dengan melakukan konservasi mangrove.

    Edukasi, dilakukan kepada masyarakat dengan menjadikan kawasan konservasi mangrove sebagai kawasan pembelajaran. Pengayaan vegetasi dilakukan melalui pembangunan arboretum mangrove yang dikembangkan menjadi ekowisata. Kepedulian tersebut telah membawa PT Pertamina EP Asset 1 Field Rantau dan Pertamina Refinery Unit VI Balongan meraih predikat Emas dalam Program Penilaian Peringkat Kinerja Perusahaan (PROPER) periode 2015-2016 yang di laksanakan Kementerian Lingkungan Hidup dan Kehutanan. Dua predikat ini melengkapi keberhasilan PT Pertamina memborong tujuh PROPER Emas dan 71 PROPER Hijau.

    Selain Refinery Unit VI Balongan dan PT Pertamina EP Asset 1 Field Rantau, unit usaha lain yang meraih PROPER Emas adalah PT Pertamina Hulu Energi West Madura Offshore (WMO) Jawa Timur, Badak NGL - Kalimantan Timur, JOB Pertamina Talisman Jambi Merang - Jambi, Marketing Operation Region IV TBBM Rewulu - DIY, dan PT Pertamina Geothermal Energy Area Kamojang - Jawa Barat. Prestasi yang ditunjukkan Pertamina sangat diapresiasi oleh Wakil Presiden RI, Jusuf Kalla.

    Keberhasilan tersebut menjadi bukti komitmen dan kedisiplinan Badan Usaha Milik Negara (BUMN), khususnya Pertamina, dalam pengelolaan lingkungan hidup. ”Tujuh predikat Emas yang diraih Pertamina Serta tiga predikat Emas lainnya yang diraih BUMN membuktikan bahwa BUMN lebih disiplin dibanding perusahaan swasta,” kata Jusuf Kalla ketika menyerahkan penghargaan PROPER 2016 di Istana Wakil Presiden, Rabu (7/ 12). Direktur Utama PT Pertamina, Dwi Soetjipto, menambahkan tujuh PROPER Emas yang diperoleh merupakan pencapaian yang sangat membanggakan bagi Pertamina. Prestasi ini merupakan pengakuan atas hasil nyata dari green action yang diterapkan di unit usaha Pertamina. ”Pertamina memiliki komitmen dan perhatian yang tinggi akan kelestarian lingkungan dan kesejahteraan masyarakat di sekitar wilayah operasi perusahaan,” katanya.

IN ENGLISH

Wins 7 Gold PROPER , Pertamina Prove Commitment to Environmental Stewardship

    Availability of electricity have not fully enjoyed by citizens in all regions of Indonesia. Villagers intervened Paloh in Simpang Clear, East Aceh including One. Paloh intervened village is one of the villages located around the area of ​​operations of PT Pertamina EP Field Rantau Asset 1, Aceh; Isolated rural location makes people have to get used to live without electricity. Educational facilities such as school buildings is still minimal. Everyday, the majority of locals livelihoods depend on felling trees. This condition stir Naufal Raziq to innovate in order to improve the situation.

    Student MTSN District of Lama Langsa, Langsa utilizes amra tree as a source of electrical energy. With the support of PT Pertamina EP Field Rantau Asset 1, the development of this innovation coupled movement to plant 1,100 trees that illuminate energy 30 houses and 7 public facilities. DesaTampur Paloh is also growing with the construction of Madrasah Aliyah (Islamic High School) so that children no longer need to travel a distance of tens of kilometers to enjoy education. While on the north coast of Indramayu, Pertamina Refinery Unit VI Balongan, West Java trying to save the coastal areas abrasion by mangrove conservation.

    Education, done to society by making the mangrove conservation area as a learning area. Enrichment vegetation is done through the development of mangrove arboretum developed into eco-tourism. Concern has brought PT Pertamina EP Field Rantau Asset 1 and Pertamina Refinery Unit VI Balongan was awarded Gold in the Program Performance Rating (PROPER) in the period 2015 to 2016 which carried the Ministry of Environment and Forestry. Two predicate complements the success of PT Pertamina bought seven gold and 71 PROPER PROPER Green.

    Besides Refinery Unit VI Balongan and PT Pertamina EP Asset 1 Field Rantau, other business units that achieve PROPER Gold is PT Pertamina Hulu Energi West Madura Offshore (WMO) in East Java, Badak NGL - East Kalimantan, JOB Pertamina Talisman Jambi Merang - Jambi, Marketing Operation Region IV TBBM Rewulu - DIY, and PT Pertamina Geothermal Energy Kamojang Area - West Java. Achievement shown Pertamina highly appreciated by the Vice President, Jusuf Kalla.

    The success is a proof of the commitment and discipline of State-Owned Enterprises (SOEs), especially Pertamina, in environmental management. "Seven predicate achieved Gold Pertamina well as three other gold predicate achieved proves that state-owned enterprises SOEs are more disciplined than the private companies," Kalla said when handing PROPER award in 2016 at the Vice President, on Wednesday (7/12). President Director of PT Pertamina, Soetjipto, adding seven PROPER Gold acquired a very proud achievement for Pertamina. This achievement is recognition of the tangible results of green actions implemented in the business units Pertamina. "Pertamina has a high commitment and concern of environmental sustainability and the well-being of communities in which the company's operations," he said.

Kompas, Page-16,Thursday, Dec,8,2016

Produksi Minyak Tahun 2017 Berharap dari Cepu

    Pemerintah menargetkan, produksi minyak pada 2017 mencapai 815.000 barel per hari atau barel oil per day (bopd) adapun produksi minyak tahun ini bisa mencapai 830.000 bph. Hal itu bisa tercapai berkat produksi di lapangan Banyu Urip yang bisa dipacu hingga mencapai 200.000 bph tahun depan. Sementara untuk produksi gas ditargetkan mencapai 6.440 mmscfd tahun depan. Produksi gas tersebut berasal dari produksi gas Blok Mahakam, blok Jabung, dan Jangkrik. "Kami optimistis, tahun 2016 target lifting tercapai, biarpun pas-pasan," kata Amien Sunaryadi, Kepala Satuan Kerja Khusus Pelaksana Kegiatan Usaha Hulu Minyak dan Gas Bumi (SKK Migas).

    Untuk mencapai hal tersebut, menurut Amien, kontraktor migas harus melakukan sejumlah kegiatan di tahun depan agar produksi naik. Seperti menentukan skenario produksi sesuai kaidah yang benar berdasarkan kemampuan reservoir. Sehingga didapatkan tingkat pengurasan migas optimal dari melakukan penentuan skala prioritas terhadap rencana kerja dari pemboran, workover, dan well service berdasarkan produksi dan keekonomian. Board of Director Indonesia Petroleum Association (IPA) Tenny Wibowo menyatakan, pemerintah sudah melakukan perubahan positif untuk menjaga iklim investasi. Tapi tidak semua perubahan membawa dampak positif, apalagi jika perubahan dilakukan di tengah-tengah kontrak yang tengah berjalan. Perubahan-perubahan lain itu yang terbaik tidak memotong di tengah jalan

IN ENGLISH

Oil production from Cepu Wishing Year 2017

    The government is targeting oil production in 2017 reached 815 000 barrels per day, or barrels of oil per day (bopd) while oil production this year could reach 830,000 bpd. It can be achieved thanks to production at the Banyu Urip field that can be driven up to 200,000 bpd next year. As for gas production is expected to reach 6,440 MMSCFD next year. The gas production comes from gas production Mahakam Block, Jabung block, and crickets. "We are optimistic that the 2016 target of lifting is reached, even if just barely," said Amien Sunaryadi, Head of the Special Unit of Upstream Oil and Gas (SKK Migas).

    To achieve this, according to Amien, oil and gas contractors must undertake a number of activities in the next year so that production rose. As production scenarios according to the rules determining the correct based on the ability of the reservoir. So we get the optimal level of oil and gas depletion of conduct setting priorities of the work plan of the drilling, workover and well service based on the production and economics. Board of Director Indonesian Petroleum Association (IPA) WiboWo Tenny said the government is already making a positive change to keep the investment climate. But not all the changes have a positive impact, especially if changes are made in the midst of ongoing contracts. Other changes it is best not to cut in the middle of the road

Kontan, Page-14,Thursday, Dec,8,2016

Oil Prices have the opportunity to go up

Minister of Finance (Menkeu) Sri Mulyani said the opportunity for an increase in world oil prices after the Organization of the Petroleum Exporting Countries (OPEC) decision to cut production is still in the range of 50 percent. Sri Mulyani projected that even if there was an increase in oil prices, it would not have occurred significantly. 

    Sri explained, after OPEC's decision to cut crude oil production by 1.2 million barrels per day to 32.5 million barrels per day (bpd), questions will arise, whether from the demand or demand side, it will match the cuts made.

The former managing director of the World Bank said that with the adjustment of the European economic climate due to Brexit and the referendum in Italy, the demand for oil from European countries could change. Not to mention, the economic policy of the United States (US) under Donald Trump. This means that production cuts coupled with low demand have not been able to significantly boost oil prices.

In general, Sri believes that the Indonesian oil price assumption (ICP) set in the 2017 State Budget (APBN) of US $ 45 per barrel is still relevant despite OPEC's production cuts.

Moreover, Indonesia has chosen to temporarily freeze its membership because it is impossible for Indonesia to participate in cutting production. The Coordinating Minister for the Economy Darmin Nasution said that OPEC's steps to cut production still had to be seen on its effectiveness. 

    The risk from price increases that could occur is of course anticipated by the Government of Indonesia. Bank Mandiri Chief Economist Anton Gunawan added that the potential for an increase in world oil prices still depends on the dynamics of the demand side.

The reason is that US shale gas production continues to overshadow world oil prices, which are starting to rise. He said that when the oil price starts to reach 70 US dollars per barrel, shale gas production may be increased and the oil price will be on hold again. 

    The net increase in world oil prices has an effect on the State Revenue and Expenditure Budget (APBN), especially if the government is consistent with not general subsidies, it will not be affected by the spending side. Mostly in the form of direct subsidies. Hence, with this, there is a windfall game. The only effect might be that if the government increases the price of fuel, it will have an effect on inflation.

Republika, Page-13, Wednesday, Dec 7, 2016

Efisiensi Modal lnvestasi Pertamina

    Dominasi pengelolaan hulu migas oleh Pertamina hanya 20%, jauh di bawah NOC lain, seperti Petrobras hingga 81%, Petronas 47%, dan Statoil 58%. Upaya efisiensi merupakan sumber kekuatan PT Pertamina untuk melakukan investasi dalam pembangunan infrastruktur, khususnya kilang. Peningkatan daya beli Pertamina dalam pengadaan bahan bakar minyak tanpa menggunakan letter of credit (L/C), membuat Pertamina memiliki kemampuan keuangan yang besar sehingga dapat menghapus pinjaman jangka pendek pada November 2016 dari semula US$ 5 miliar pada 2015. Kas Pertamina juga naik dari US$ 1 miliar menjadi US$ 5,6 miliar.

    Dari situ nanti kami akan masuk ke investasi,” ujar Direktur Utama PT Pertamina Dwi Soetjipto. Pertamina merencanakan investasi Rp 1.000 triliun dalam 10 tahun ke depan untuk pembangunan kilang, infrastruktur gas, pengolahan, dan pemasaran, dengan menggandeng swasta. Investasi pembangunan infrastruktur Pertamina juga harus didukung reformasi UU migas. Saat ini cadangan migas negara belum di leverage menjadi aset yang akan berpengaruh pada kekuatan ekonomi lebih besar.

    Di sanalah nanti, dari sisi laba dan aset barangkali kita bisa mengalahkan perusahaan besar negara tetangga,” tutur Dwi. Dalam pandangan pengamat energi Universitas Gajah Mada, Fahmy Radhi, efisiensi menjadi langkah awal Pertamina untuk menjadi perusahaan energi kelas dunia. Itu modal Pertamina untuk akfif dalam ekspansi investasi di luar negeri. Tahap awal dengan akuisisi lahan migas yang sudah berproduksi. Kedua, Pertamina diberi keistimewaan menguasai dan mengusahakan lahan migas dalam negeri,” kata Fahmy.

    Selain itu, Pertamina bisa ditunjuk pemerintah untuk menguasai aset melalui monetasi. Hal itu bertujuan menaikkan international leverage Pertamina. “Selain itu, meminimkan intervensi berlebihan dalam organisasi, penambahan direksi, juga dalam pengambilan keputusan corporate actions,” katanya. Hal terpenting lainnya ialah pemberian keleluasaan kepada Pertamina untuk memanfaatkan keuntungan mereka. Tidak boleh lagi menjadi ‘sapi perah’ dan tumpuan penyetor dividen. Berikan kesempatan kepada Pertamina menggunakan dividen untuk melakukan ekspansi, terutama ekspansi di luar negeri,” ujarnya.

    Prioritas kelola hulu Pemberian keistimewaan itu wajar untuk menjadikan Pertamina sebagai BUMN energi terintegrasi dan berkelas dunia karena dominasi pengelolaan hulu migas oleh Pertamina hanya 20%, di bawah perusahaan minyak nasional (NOC) negara lain yang memiliki porsi produksi domestik besar, seperti Brazil 81%, Aljazair 78%, Norwegia 58%, dan Malaysia 47%. “Akan lebih bagus dalam revisi UU 22/2001 (UU Migas), Pertamina diberi semua privilage, tapi tidak menjadikannya sebagai regulator,” ujar anggota Komisi VII DPR, Satya W Yudha. Pemberian prioritas itu, misalnya, terkait dengan mendapat penawaran pertama untuk setiap kontrak blok migas yang akan habis (expired). “Bisa juga semua blok potensial diberikan ke Pertamina, sisanya diberikan kepada kontraktor bagi hasil (PSC) lain.

IN ENGLISH

Efficiency of Capital Investments Pertamina

    The dominance of the management of Pertamina upstream oil and gas by only 20%, far below other NOCs, such as Petrobras up to 81%, Petronas 47% and Statoil 58%. Efforts efficiency is a source of strength PT Pertamina to invest in development of infrastructure, especially refineries. Pertamina increased purchasing power in the procurement of fuel oil without using letters of credit (L / C), making Pertamina has huge financial capabilities so as to remove the short-term loan in November 2016 from US $ 5 billion in 2015. Cash Pertamina also rose from US $ 1 billion to $ 5.6 billion.

    From there we'll go into investment, "said President Director of PT Pertamina Dwi Soetjipto. Pertamina plans to invest Rp 1.000 trillion in the next 10 years for the construction of refineries, gas infrastructure, processing, and marketing, by cooperating with the private sector. Pertamina infrastructure development investment must also be supported reform of the oil and gas law. Currently oil and gas reserves in the country has not been leveraged into an asset that will affect the greater economic power.

    It was there that day, in terms of income and assets maybe we could beat the big companies neighboring countries, "said Dwi. In the view of observers energy Gajah Mada University, Fahmy Radhi, efficiency becomes the first step Pertamina to become a world-class energy company. It Pertamina's capital investment in the expansion akfif abroad. The initial stage of the acquisition of oil and gas fields already in production. Second, Pertamina was given the privilege to master and exploit oil and gas fields in the country, "said Fahmy.

    In addition, Pertamina could be appointed by the government to control assets through monetization. It aims to raise international leverage Pertamina. "In addition, to minimize excessive intervention in the organization, the addition of directors, also in decision-making corporate actions," he said. Another important thing is the provision of flexibility to Pertamina to exploit their advantage. Should no longer be a 'cash cow' and support the depositor dividends. Provide the opportunity for Pertamina to use dividends to expand, particularly in overseas expansion, "he said.

    Priority manage upstream Granting privileges was reasonable to make Pertamina as a state integrated energy and world-class because of the dominance of the management of upstream oil and gas Pertamina only 20%, below the national oil company (NOC) of other countries that have a portion of domestic production of large, such as Brazil 81%, Algeria 78%, Norway 58%, and Malaysia 47%. "It would be great in the revision of Law 22/2001 (Oil and Gas Law), Pertamina was given all the privilage, but did not make it as a regulator," said a member of House Commission VII, Satya W Yudha. Giving priority, for example, is associated with the received first offer for each contract block of oil and gas will run out (expired). "It could also be given all potential blocks to Pertamina, the rest is given to the contractor for the results (PSC) to another.

Media Indonesia, Page-19,Wednesday, Dec,7,2016

Lima Industri Nikmati Pemotongan Harga Gas

    Kebijakan diskon harga gas untuk industri ”'akhirnya dimulai. Berdasarkan Peraturan Menteri Energi dan Sumber Daya Mineral Nomor 40 Tahun 2016, ada lima perusahaan dari industri pupuk, petrokimia dan baja, yang bakal mendapat diskon harga gas. DirekturJenderal Anggaan Kementerian Keuangan, Askolani, mengatakan kebijakan harga gas ini sama sekali tidak mengganggu penerimaan negara bukan pajak (PNBP) sektor minyak dan gas bumi. Tidak ada (pengurangan PNBP).

    Sudah diputuskan pemerintah,"katanya. Lima perusahaan yang mendapat pemotongan harga gas adalah PT Pupuk Kujang Cikampek, yang mendapat gas seharga US$ 6,03-6,05 per MMBTU, dari harga sebelumnya US$ 5,73-6,62 per MMBTU; PT Pupuk Sriwidjaja Palembang dari US$ 6,56-6,73 per MMBTU menjadi US$ 6,03-6,48 per MMBTU; dan PT Pupuk Iskandar Muda, yang memperoleh gas seharga US$ 6,3 per MMBTU, dari harga sebelumnya, US$ 7,54 per MMBTU. Pabrik baja yang mendapat gas murah adalah PT Krakatau Steel dari PT Pertamina EP sebesar US$ 6,15 per MMBTU dari harga sebelumnya, US$ 7,35. per MMBTU.

    Sedangkan harga gas yang didiskon untuk PT Petrokimia Gresik sebesar US$ 6 per MMBTU dari harga sebelumnya, US$ 6,28 per MMBTU. Gas berasal dari Kangean Energy Indonesia Ltd. Regulasi tersebut diteken Menteri Energi Ignasius Jonan pada akhir November lalu. Harga ini rencananya berlaku mulai 1 Januari 2017. “Penurunan harga gas diberlakukan untuk tiga sektor industri lebih dulu,” kata Jonan, akhir November lalu.

    Setelah harga itu ditetapkan, Menteri Energi menugasi Satuan Kerja Khusus Pelaksana Kegiatan Usaha Hulu Minyak dan Gas Bumi (SKK Migas) melaksanakan amendemen perjanjian jual-beli gas bumi serta dokumen administrasi lainnya. Kepala SKK Migas Amien Sunaryadi menjamin kontrak-kontrak gas terkait bakal segera diamendemen. Amendemen belum karena peraturan menterinya baru keluar,"ucap Amien. Berdasarkan Peraturan Presiden Nomor 40 Tahun 2016 tentang penetapan harga gas bumi, masih ada empat sektor industri yang belum mendapat diskon, yaitu oleochemical, keramik, kaca, dan sarung, tangan karet.

    Amien mengatakan pihaknya masih mencari komponen harga yang berpeluang dipangkas. Salah satunya memangkas biaya operasi penyedotan gas ataupun penangguhan depresiasi fasilitas migas. SKK Migas merencanakan perbaikan sistem lelang supaya barang dan jasa yang diperoleh lebih murah. Amien mengatakan upaya memangkas penerimaan negara merupakan salah satu cara efektif untuk memangkas harga. SKK Migas sudah melakukan simulasi harga gas hasil pemangkasan bagian migas negara ataupun pajak penghasilan (PPh). Namun usul ini belum disetujui Menteri Keuangan Sri Mulyani Indrawati.

    Direktur Jenderal Minyak dan Gas Bumi, I Gusti Nyoman Wiratmaja, mengatakan pemangkasan pajak dan bagian migas berpeluang menurunkan harga US$ 0,94-2,11 per MMBTU. Risikonya, negara bakal kehilangan pendapatan US$ 544 juta -1,26 miliar per tahun. Anggota Dewan Energi Nasional, Andang Bachtiar, meminta pemerintah tidak terburu-buru memberikan diskon gas. Pengurangan harga seharusnya ditujukan bagi industri yang sudah terbukti menghasilkan nilai tambah. “Industri juga harus transparan. Harus sharing the pain.

IN ENGLISH

Five Industry Experience Cutting Gas Prices

    Policy discount gas prices for industry '' has finally begun. Based on the Regulation of the Minister of Energy and Mineral Resources No. 40 of 2016, there were five companies of the fertilizer industry, petrochemical and steel, which will get discounts on the price of gas. Anggaan the Director General of the Ministry of Finance, Askolani, said gas pricing policy is in no way interfere with non-tax revenues (non-tax) of oil and gas sector. No (reduction of non-tax revenues).

    Already the government decides, "he said. The five companies receiving gas price cut is PT Pupuk Kujang Cikampek, which gets gas at US $ 6.03 to 6.05 per MMBTU, from the previous price of US $ 5.73 to 6.62 per MMBTU ; PT Pupuk Sriwidjaja Palembang from US $ 6.56 to 6.73 per MMBTU to $ 6.03 to 6.48 per MMBTU; and PT Pupuk Iskandar Muda, who obtain gas at US $ 6.3 per MMBTU, priced previously, US $ 7.54 per MMBTU. the steel mills who get cheap gas is PT Krakatau steel of PT Pertamina EP amounted to US $ 6.15 per MMBTU from the previous price, US $ 7.35, per MMBTU.

    While gas prices are discounted for PT PKG, $ 6 per MMBTU from the previous price, US $ 6.28 per MMBTU. Gas comes from Kangean Energy Indonesia Ltd. The regulation was signed by Energy Minister Ignatius Jonan at the end of November. This price plans effective January 1, 2017. "The decline in gas prices imposed for the first three industrial sectors," said Jonan, last November.

    Once the price was established, the Minister of Energy assigns Special Unit of Upstream Oil and Gas (SKK Migas) to implement amendments to the contract of sale of natural gas and other administrative documents. SKK Migas head Amien Sunaryadi guarantee contracts associated gas would soon be amended. Amendment not because the new ministers rule out, "said Amien. Based on Presidential Regulation No. 40 Year 2016 concerning the pricing of natural gas, there are still four industrial sectors that have not got a discount, ie oleochemical, ceramics, glass, and gloves, rubber gloves.

    Amien said it is still looking for component prices likely to be cut. One of them cut the operating costs of gas siphoning oil and gas facilities or deferral of depreciation. SKK Migas planning improvements auction system so that goods and services obtained cheaper. Amien said efforts to cut state revenue is one effective way to cut the price. SKK Migas has done a simulation result of gas prices and gas trimming or state income tax (VAT). However, this proposal has not been approved by the Minister of Finance Sri Mulyani Indrawati.

    Director General of Oil and Gas, I Gusti Nyoman Wiratmaja, said the tax cuts and parts of the oil and gas likely to lower the price of US $ 0.94 to 2.11 per MMBTU. The risk, the state would lose revenue of US $ 544 million -1.26 billion per year. Members of the National Energy Board, Andang Bachtiar, asked the government not to rush give gas discounts. Price reduction should be for the industry which has been proven to generate added value. "The industry should also be transparent. Must share the pain.

Koran Tempo, Page-14,Wednesday, Dec,7,2016

Moratorium Kontrak Blok Masela Belum Final

    Direktur Pembinaan Usaha Hulu Migas Direktorat Jenderal Minyak dan Gas Bumi Kementerian Energi dan Sumber Daya Mineral, Tunggal, mengatakan pemerintah belum memberikan keputusan atas permintaan moratorium kontrak yang diajukan kontraktor Blok Masela, Inpex Corporation Limited. Alasannya, sampai saat ini Inpex belum mengajukan Studi pre-feed sebagai bekal penyusunan rencana pengembangan (plan of development/POD) gas Masela.

    Tunggal mengungkapkan, Studi pre-feed nantinya dilakukan Inpex dengan pengawasan langsung oleh Satuan Kerja Khusus Pelaksana Kegiatan Usaha Hulu Minyak dan Gas (SKK Migas). Namun, sebelum studi ini dimulai, pihaknya harus memastikan proyek gas Masela bisa menguntungkan pemerintah dan kontraktor “Syarat-syaratnya belum bisa saya jelaskan,” ujar Tunggal. Sebelumnya, Menteri Koordinator Kemaritiman Luhut Binsar Pandjaitan menargetkan dokumen POD bisa rampung tahun depan.

    Dengan begitu, keputusan akhir investasi (final invesment decision) bisa keluar pada 2019. Awal tahun lalu, pemerintah menolak rencana Inpex mengembangkan blok melalui kilang terapung (offshore). Presiden Joko Widodo menginginkan gas diolah melalui kilang darat (onshore). Juru bicara Inpex, Usman Slamet, menyatakan optimistis pemerintah bakal memberikan keputusan untuk meningkatkan skala keekonomian proyek gas Lapangan Abadi Masela.

    Ihwal penolakan pemerintah atas permintaan moratorium kontrak selama 10 tahun, Usman menolak berkomentar. Alasannya, hingga kini Inpex belum mendapat keputusan dari pemerintah. “Sejauh ini, kami terus bertemu dengan Kementerian Energi dan SKK Migas membahas kondisi yang dibutuhkan,” ujarnya. Menteri Energi dan Sumber Daya Mineral Ignasius Jonan menyebutkan, pemerintah masih menimbang permintaan moratorium kontrak Inpex. Boleh saja meminta 10 tahun, minta 50 tahun juga boleh, masih dihitung, kata Jonan.

IN ENGLISH

Moratorium Contract Masela Not Final

    Director of Upstream Oil and Gas Directorate General of Oil and Gas at the Ministry of Energy and Mineral Resources, Tunggal, said the government has yet to give a decision on the request moratorium proposed contract contractor Masela, Inpex Corporation Limited. The reason, until now Inpex has not submitted a pre-feed studies as a provision for the preparation of the development plan (plan of development / POD) Masela gas.

    Revealed a single, pre-feed studies will be done Inpex with direct supervision by the Special Unit of Upstream Oil and Gas (SKK Migas). However, before this study started, it must ensure Masela gas project could benefit the government and the contractor "The requirements have not been able to explain," said Son. Earlier, Coordinating Minister maritime Luhut Binsar Pandjaitan targeting POD document could be completed next year.

    Thus, a final investment decision (final investment as decision) could come out in 2019. Early last year, the government refused Inpex plans to develop a block through an offshore plant (offshore). President Joko Widodo wants gas is processed through the refinery land (onshore). Inpex spokesman, Usman Slamet, expressed optimism the government will leave the decision to increase economies of scale Abadi field Masela gas project.

    About the government's refusal on request moratorium contract for 10 years, Usman declined to comment. The reason, until now Inpex has not received a decision from the government. "So far, we continued to meet with the Ministry of Energy and Oil and Gas SKK discuss the necessary conditions," he said. Minister of Energy and Mineral Resources Ignatius Jonan said the government is still considering the request moratorium Inpex contract. It's okay to ask for 10 years, asked for 50 years may also still be calculated, said Jonan.

Koran Tempo, Page-5,Wednesday, Dec,7,2016