Business communities Wait for New Tax Regime

Following the application of the gross production sharing contracts (production sharing contract / PSC) gross split, businesses upstream oil and gas among the new tax regime. Executive Director of the Indonesian Petroleum Association (IPA) Marjolijn Wajong hope the new government immediately issued a regulation governing the tax treatment of the upstream oil and gas after the publication of Regulation No.8 / 2017 on Contracts Gross Split.

The new beleid required given the Government Regulation No.79 / 2010 on Operation Costs Can Be Restored and Income Tax Treatment of the Upstream Oil and Gas only set the tax treatment of the PSC cost recovery.

In fact, with the enactment of gross PSC split on new working areas and work areas that will be out of contract, tax calculation automatically change. On gross PSC split, contractors no longer receive compensation operating costs. Thus, the tax reimbursement will no longer be applicable when using gross PSC split. "Hopefully, and maybe there will be a new beleid governing taxation," he said.

In addition to calculating the new tax scheme, businesses also ask for the revision of Chapter II of the gross income and deduction of income contractor in Government Regulation No. 79/2010 it. In that chapter touched on First Tranche Petroleum (FTP) and the equity to be split.

FTP is the volume of oil or gas are produced which can be taken before deducting operating cost recovery and production handling, while the equity to be split ie products that can be shared between the government and the contractor because of reduced FTP, return on operating costs and incentives, if any. The only component in the system contract cost recovery and are no longer applicable when the gross PSC split applied.

On the other hand, Article 31 of Law No. 22/2001 on Oil and Gas stipulates that enterprises or business entities conducting business fixed upstream obligated to pay state income in the form of tax and non-tax revenues. "We are still waiting for the regulation of the Ministry of Finance," he said.

Separately, President Director of PT Pertamina Hulu Energi Mount Sardjono Hadi said, for the company is still using the tax provision in a regulation that the current tax regime changes are expected to make the economics better on upstream capital-intensive projects. Source Business Unit Special Upstream Oil and Gas (SKK Migas) said last week it had carried out discussions with the Directorate General of Budget (DJA) and the Directorate General of Taxation [DGT) of the Ministry of Finance related to taxation and income tax calculations (VAT ) for gross PSC split.

Later, the government will issue regulations governing the tax treatment for gross PSC split in order to attract investment through the application of gross PSC split. "The plan will be set in a separate government regulation for gross split. The discussion will be conducted in the near future, "he said.

While waiting for the process of drafting a regulation, taxation on ONWJ that have effectively apply the gross split will refer to Article 11 and Article 13 of Regulation 79/2010 which regulates the operating costs. "For a time, the treatment costs are taken into account as tax deductibility will adopt the provisions of Government Regulation 79/2010 on Operating Costs," he said

IN INDONESIAN

Pelaku Usaha Tunggu Rezim Pajak Baru

Direktur Eksekutif Indonesian Petroleum Association (IPA) Marjolijn Wajong

Menyusul penerapan kontrak bagi hasil kotor (production sharing contract/PSC) gross split, pelaku usaha hulu minyak dan gas bumi menanti rezim pajak baru.  Direktur Eksekutif Indonesian Petroleum Association (IPA) Marjolijn Wajong berharap pemerintah segera mengeluarkan beleid baru yang mengatur perlakuan pajak terhadap industri hulu minyak dan gas bumi pasca penerbitan Peraturan Menteri No.8/2017 tentang Kontrak Gross Split.

Beleid baru tersebut diperlukan mengingat Peraturan Pemerintah No.79/2010 tentang Biaya Operasi yang Bisa Dikembalikan dan Perlakuan Pajak Penghasilan terhadap Industri Hulu Minyak dan Gas Bumi hanya mengatur perlakuan pajak terhadap PSC cost recovery. 

Padahal, dengan berlakunya PSC gross split pada wilayah kerja baru dan wilayah kerja yang akan habis masa kontraknya, perhitungan pajak secara otomatis berubah. Pada PSC gross split, kontraktor tidak lagi mendapat penggantian biaya operasi. Dengan demikian, pajak reimbursement tidak akan lagi bisa diterapkan ketika menggunakan PSC gross split. “Semoga dan mungkin akan ada beleid baru yang mengatur perpajakan ,” ujarnya.

Selain skema penghitungan pajak baru, pelaku usaha juga meminta revisi Bab II tentang penghasilan kotor dan pengurang penghasilan kontraktor dalam Peraturan Pemerintah No. 79 /2010 itu. Dalam bab tersebut disinggung tentang first tranche petroleum (FTP) dan equity to be split.

FTP merupakan volume minyak atau gas yang diproduksi yang dapat diambil sebelum dikurangi pengembalian biaya operasi dan penanganan produksi, sedangkan equity to be split yakni produk yang bisa dibagi antara pemerintah dan kontraktor karena telah dikurangi FTP, pengembalian biaya operasi dan insentif, bila ada. Komponen tersebut hanya ada dalam sistem kontrak cost recovery dan tidak lagi berlaku ketika PSC gross split diterapkan.

Di sisi lain, Pasal 31 Undang-Undang No. 22/2001 tentang Minyak dan Gas Bumi mengatur bahwa badan usaha atau badan usaha tetap yang melaksanakan kegiatan usaha hulu wajib membayar penerimaan negara yang berupa pajak dan penerimaan negara bukan pajak. “Kami masih menunggu peraturan dari Kementerian Keuangan,” katanya.

Secara terpisah, Presiden Direktur PT Pertamina Hulu Energi Gunung Sardjono Hadi mengatakan, untuk saat ini pihaknya masih menggunakan ketentuan pajak dalam beleid yang berlaku saat Perubahan rezim pajak diharapkan bisa membuat keekonomian yang lebih baik pada proyek hulu yang padat modal. Sumber Bisnis di Satuan Kerja Khusus Pelaksana Kegiatan Usaha Hulu Minyak dan Gas Bumi (SKK Migas) mengungkapkan pekan lalu telah dilakukan diskusi dengan Direktorat Jenderal Anggaran (DJA) dan Direktorat Jenderal Pajak [DJP) Kementerian Keuangan terkait dengan pengenaan pajak dan perhitungan pajak penghasilan (PPh) untuk PSC gross split.

Nantinya, pemerintah akan menerbitkan peraturan pemerintah yang mengatur perlakuan perpajakan bagi PSC gross split guna menarik investasi melalui penerapan PSC gross split. “Rencananya akan diatur dalam Peraturan Pemerintah tersendiri untuk gross split. Pembahasannya akan dilakukan dalam waktu dekat ini,” katanya.

Sambil menanti proses penyusunan beleid tersebut, pengenaan pajak pada Blok ONWJ yang telah efektif menerapkan gross split akan mengacu pada Pasal 11 hingga Pasal 13 PP 79/2010 yang mengatur tentang biaya operasi. “Untuk sementara waktu, perlakuan biaya-biaya yang diperhitungkan sebagai tax deductibility akan mengadopsi dari ketentuan Peraturan Pemerintah 79/2010 mengenai Biaya Operasi,” katanya

Bisnis Indonesia, Page-30, Thursday, Feb, 23, 2017

EMR: Incentives Inpex Already Complete

Oil and gas

Ministry of Energy and Mineral Resources (ESDM) claim to demand incentives Inpex Corp on developing perennial field, Masela was settled. Deputy Minister of Energy and Mineral Resources Arcandra Tahar say, five to six clauses requested Inpex been agreed with the government. Hence, Arcandra believe in the near future this will Inpex do the next step, namely the Preliminary Front end engineering design (pre-FEED) on the project Abadi field, Masela. Pre FEED is the project definition phase.

If completed, the document FEED been the basis for the project by the operator. "Clauses in the negotiations of the government clear." We waited for Pre-FEED. "Arcandra said. If the reference request Inpex Corporation, operator Masela filed five clauses for the project over the Masela block Masela developmental change from sea to land.

First, the refinery capacity additions Liquefied natural gas or LNG from the 7.5 million tons per annum (mtpa) to 9.5 mtpa. Second, the addition of a 10-year contract. Third, the revenue ratio and return on investment or internal rate of return (IRR) of 15%, the fourth, the cost recovery over a period of exploration, and finally ease a government license.

The government claimed to give a 7-year contract extension to or lower than the demand Inpex. The reason, many components that can be used any schema changes from offshore to onshore. The government also does not mind include the costs incurred Inpex-Shell during exploration, but there should be an audit.

As for the matter of the LNG plant capacity increase, the government will decide the post Pre-FEED so. Only the options: a 7.5 mtpa LNG production plus 474 MMSCFD of gas pipelines and two 9.5 mtpa LNG pipeline gas plus 150 MMSCFD.

Senior Manager of Communication and Relations Inpex, Usman Slamet said that, to date, Inpex and Shell Indonesia continues to work with governments to implement the Abadi gas field development. This cooperation continues to be done in order to reach agreement on the economic level of development and project development Masela block. "We are optimistic that the conditions needed to start a project that is investable be immediately obtained," said Usman.

Hopefully, if all the clauses have been agreed, could Inpex Masela step to start the project. By doing so, the project is not delayed.

IN INDONESIAN

Minyak dan Gas 

ESDM: Insentif Inpex Sudah Beres

Kementerian Energi dan Sumber Daya Mineral (ESDM) mengaku pernintaan insentif Inpex Corp atas pengembangan lapangan abadi, Blok Masela sudah beres. Wakil Menteri Energi dan Sumber Daya Mineral Arcandra Tahar mengatakan, lima hingga enam klausul yang diminta Inpex sudah disepakati dengan pemerintah. Makanya, Arcandra yakin dalam Waktu dekat ini Inpex akan melakukan langkah selanjutnya yaitu Preliminary Front end engineering design (Pre-FEED) atas proyek Lapangan Abadi, Blok Masela. Pre FEED adalah fase pendefinisian proyek.

Jika selesai, dokumen FEED menjadi patokan dalam pengerjaan proyek oleh operator. "Klausal dalam negosiasi dari pemerintah clear. "Kami menunggu Pre-FEED." kata Arcandra. Jika merujuk permintaan Inpex Corporation, operator Blok Masela ini mengajukan lima klausul untuk pengerjaan proyek blok Masela atas perubahan pembangunan Masela dari laut ke darat. 

Pertama, penambahan kapasitas kilang Liquified natural gas atau LNG dari 7,5 million tons per annum (mtpa) menjadi 9,5 mtpa. Kedua, penambahan kontrak selama 10 tahun. Ketiga, rasio penerimaan dan pengembalian dana investasi atau internal rate of return (IRR) sebesar 15%, keempat, adanya cost recovery selama masa eksplorasi, dan terakhir kemudahan perizinan dari pemerintah.

Pemerintah mengaku memberikan perpanjangan kontrak 7 tahun atau lebih rendah dari permintaan Inpex. Alasanya, banyak komponen yang bisa dipakai adanya perubahan skema dari offshore ke onshore. Pemerintah juga tidak keberatan memasukan biaya yang dikeluarkan lnpex-Shell selama masa ekplorasi, namun harus ada audit.

Adapun soal penambahan kapasitas kilang LNG, pemerintah akan memutuskan pasca Pre-FEED jadi. Hanya opsinya: produksi LNG 7,5 mtpa plus gas pipa 474 mmscfd dan kedua LNG sebesar 9,5 mtpa plus gas pipa 150 mmscfd.

Senior Manager Communication and Relation Inpex, Usman Slamet mengatakan, hingga saat ini, Inpex dan Shell Indonesia terus bekerjasama dengan pemerintah untuk melaksanakan pengembangan lapangan gas Abadi. Kerjasama ini terus dilakukan agar bisa mencapai kesepakatan terkait tingkat keekonomian pembangunan dan pengembangan proyek blok Masela. "Kami optimistis kondisi yang dibutuhkan untuk memulai sebuah proyek yang investable segera diperoleh," kata Usman.

Harapannya, jika semua klausul sudah disepakati, Inpex bisa melangkah untuk memulai proyek Masela. Dengan begitu, proyek tidak terus tertunda.

Kontan, Page-14, Wedbesday, Feb, 22, 2017

Salman King Bring the entourage of 1,500 people

Saudi Bring Investment Rp 32.5 Trillion

Visits Saudi Arabia's King Saud bin Salman Abdulazis Al to Indonesia early March will be very special. The last time the king of Saudi Arabia visited Indonesia was in 1970 when it was King Faisal bin Saud AI Abdulazis. Well, after 47 years, the Saudi king back to visit Indonesia. The delegation Raja Salman was in Indonesia for nine days, beginning March 1 later

Three days pertarna contain a formal state agenda. The rest, for six days of King Salman going on holiday to Bali. Members of his entourage was not half-hearted, reaching 1,500 people. Including 10 ministers and 25 princes. President Joko Widodo will pick up directly Raja Salman at Halim Perdanakusuma Airport in Jakarta.

"This was done because when the President to Saudi picked up at the door of the plane by King Salman," said Chief Cabinet Secretary Pramono Agung. He said that Saudi would plant a substantial investment in Indonesia. One of them work together oil company Saudi Aramco, with Pertamina USD 6 billion (Rp 79.8 trillion) for the development of an oil refinery in Cilacap. overall, it is expected that investments can go from Arabia to reach $ 25 billion, or around Rp 332.5 trillion.

There are five cooperation between the two governments agreed. Namely, the promotion of the arts and cultural heritage, exchange of health experts Hajj and Umrah, as well as the promotion of moderate Islam which include proselytizing and exchange scholars. There is also a program to improve the frequency of flights from Indonesia to Saudi as well as cross-border crime prevention.

Saudi also given attention in eradicating terrorism in Indonesia. Especially against members of Detachment 88 Antiterror. Detachment member who died, parents per year will dihajikan by the Kingdom of Saudi regarded as martyrs, "said Pramono.

Regarding the group holiday to Bali Raja Salman, Deputy Foreign Minister A.M. Ilu Fachir rate it as a benefit for Indonesia. "It's an incredible promotion," he said.

IN INDONESIAN

Raja Salman Bawa Rombongan 1.500 Orang

Saudi Bawa Investasi Rp 32,5 Triliun

Kunjungan Raja Arab Saudi Salman bin Abdulazis Al Saud ke Indonesia awal Maret nanti sangat istimewa. Kali terakhir raja Saudi mengunjungi Indonesia adalah pada 1970. Raja kala itu adalah Faisal bin Abdulazis AI Saud.  Nah, setelah 47 tahun, raja Saudi kembali mengunjungi Indonesia. Rombongan Raja Salman berada di Indonesia selama sembilan hari, mulai 1 Maret nanti  

Tiga hari pertarna berisi agenda kenegaraan resmi. Selebihnya, selama enam hari Raja Salman akan berlibur ke Bali. Anggota rombongannya pun tidak tanggung-tanggung, mencapai 1.500 orang. Termasuk 10 menteri dan 25 pangeran. Presiden Joko Widodo akan menjemput langsung Raja Salman di Bandara Halim Perdanakusuma, Jakarta.

"Ini dilakukan karena saat Presiden ke Saudi dijemput di pintu pesawat oleh Raja Salman,” ujar Sekretaris Kabinet Pramono Anung. Dia menuturkan, Saudi akan menanam investasi yang cukup besar di Indonesia. Salah satunya kerja sama perusahaan minyak Saudi, Aramco, dengan Pertamina senilai USD 6 miliar (sekitar Rp 79,8 triliun) untuk pengembangan kilang minyak di Cilacap. Secara keseluruhan, diharapkan investasi yang bisa masuk dari Saudi mencapai USD 25 miliar atau sekitar Rp 332,5 triliun.

Ada lima kerja sama kedua pemerintah yang sudah disepakati. Yakni, promosi seni dan warisan budaya, pertukaran ahli kesehatan haji dan umrah, serta promosi Islam moderat yang di dalamnya mencakup dakwah dan pertukaran ulama. Ada pula program peningkatan frekuensi penerbangan dari Indonesia ke Saudi serta penanggulangan kejahatan lintas batas. 

Saudi juga memberikan perhatian dalam penanggulangan terorisme di Indonesia. Khususnya terhadap para anggota Densus 88 Antiteror. Anggota Densus yang meninggal, orang tuanya per tahun akan dihajikan oleh Kerajaan Saudi dianggap sebagai syuhada,” kata Pramono.

Mengenai liburan rombongan Raja Salman ke Bali, Wakil Menteri Luar Negeri A.M. Fachir menilai hal ilu sebagai keuntungan bagi Indonesia. ”Itu promosi luar biasa,"' katanya.

Jawa Pos, Page-1, Wedbesday, Feb, 22, 2017

Prices Gas Industry in Medan So Single Digit

Ministry of Energy and Mineral Resources (ESDM) has issued a ministerial decree (Decree) related to the price of gas for industry in Medan and surrounding areas. Industrial gas prices in the region are now under double digits and in effect since February 1, 2017.

Quoted from the Directorate General of Oil and Gas, Energy and Mineral Resources Ministerial Decree N0 434 K / 12 / MEM / 201 it says natural gas prices for industry in Medan and surrounding areas are calculated based on the price component of the upstream natural gas, distribution rates, and cost of natural gas distribution. In the appendix of the ministerial regulation, there is a difference scheme for calculating gas upstream rates. Gas from PT Pertamina Hulu Energi North Sumatra Offshore (PHE NSO), for example, the original US $ 7.85 per mmbtu. As of February 1, the price dropped to US $ 6.95 + 1% ICP (Indonesian crude price).

Similarly, the price of gas PT Pertamina EP dropped to US $ 6.82 + 1% ICP from US $ 8.24 per mmbtu. Meanwhile, gas prices Triangle Pase Inc. to US $ 6.95 + 1% ICP from US $ 7.85 per mmbtu. The three also lowered rates distribution of natural gas through pipelines. Meanwhile, PT PGN also cut distribution costs of US $ 1.35 to US $ 0.9 per m3. "Director General of Oil and Gas on behalf of the Minister to evaluate the price of natural gas every year or at any time if necessary," declared Minister Ignatius Jonan in the signing of a regulation on the February 13.

According to the ministry, the gas pricing policy aimed to sustain the growth and competitiveness of the industry in Medan and surrounding areas. Earlier, in Indogas forum, the early months of Director General of Oil IGN Wiratmaja Puja said, after a long discussion, the price of gas in the North Sumatra region ready to be lowered from US $ 13.38 per mmbtu to US $ 9.95 per mmbtu. "Friends in PHE and Pertamina EP of descending again," he said.

IN INDONESIAN

Harga Gas Industri di Medan Jadi Satu Digit

Kementerian Energi dan Sumber Daya Mineral (ESDM) telah mengeluarkan keputusan menteri (kepmen) terkait dengan harga gas untuk industri di Medan dan sekitarnya. Harga gas industri di wilayah tersebut kini di bawah dua digit dan berlaku sejak 1 Februari 2017. 

Dikutip dari laman Ditjen Migas, Keputusan Menteri ESDM N0 434 K/12/ MEM/201 itu menyebutkan harga gas bumi untuk industri di wilayah Medan dan sekitarnya dihitung berdasarkan komponen harga gas bumi hulu, tarif penyaluran, dan biaya distribusi gas bumi. Dalam lampiran peraturan menteri tersebut, ada perbedaan skema penghitungan untuk gas tarif hulu. Gas dari PT Pertamina Hulu Energi North Sumatra Offshore (PHE NSO), misalnya, semula US$ 7,85 per mmbtu. Per 1 Februari, harganya turun menjadi US$ 6,95+1% ICP (Indonesia crude price). 

Demikian pula harga gas dari PT Pertamina EP turun menjadi US$ 6,82+1% ICP dari semula US$ 8,24 per mmbtu. Sementara itu, harga gas Triangle Pase Inc menjadi US$ 6,95+1% ICP dari semula US$ 7,85 per mmbtu. Ketiganya juga menurunkan tarif penyaluran gas bumi melalui pipa. Sementara itu, PT PGN pun memangkas biaya distribusi dari US$ 1,35 menjadi US$ 0,9 per m3. “Dirjen Minyak dan Gas Bumi atas nama Menteri ESDM melakukan evaluasi terhadap harga gas bumi tersebut setiap tahun atau sewaktu-waktu apabila diperlukan,” demikian pernyataan Menteri ESDM Ignasius Jonan dalam beleid yang ditekennya pada 13 Februari tersebut.

Menurut pihak kementerian, kebijakan harga gas tersebut ditujukan guna menjaga keberlangsungan pertumbuhan dan daya saing industri di wilayah Medan dan sekitarnya. Sebelumnya, dalam forum Indogas, awal bulan  Dirjen Migas IGN Wiratmaja Puja mengatakan, setelah melalui diskusi panjang, harga gas di wilayah Sumatra Utara siap diturunkan dari US$ 13,38 per mmbtu menjadi US$ 9,95 per mmbtu. “Teman-teman di PHE dan Pertamina EP berkenan turun lagi,” ujarnya.

Media Indonesia, Page-18, Wednesday, Feb, 22, 2017

Mandatory Low LNG Price Far From Reality

The government’s mission to lower industrial gas prices has been considered economically unfeasible, especially for liquefied natural gas (LNG), which sees its price depending on global crude oil prices with lack of certainties in domestic demand.

President Joko “Jokowi” Widodo has instructed his Cabinet to cut end-user gas prices to below US$ 6 per million British thermal units (mmbtu) for seven industrial sectors in a bid t strengthen the downstream segtor and create a significant multiplier effect in the economy.

However, the lower price policy has only been imposed on the petrochemical, fertilizer and steel industries since Jan. 1, while gas prices for the other four industries oleochemical, glass, ceramics and rubber gloves are still in limbo. Sampe L. Purba, the gas commercialization division head at the Upstream Oil and Gas Regulatory Special Task Force (SKK Migas), said the price mechanism for LNG in Indonesia was based on a longterm contract that took global crude oil prices into account. He explained that a contractor used to take about 10 to 14 percent of the global crude oil price to decide the gas price, depending on each contract’s commercial terms and the market balance by the time the negotiation took place, to measure the LNG price.

“Hence, when the crude oil price stands at approximately $ 50 per barrel, like today, the LNG price maybe about $5 per mmbtu, which is fine. But what will happen if the price touches $100 per barrel?” Sampe said recently. Following the Organization of Petroleum Exporting Countries’ (OPEC) decision to cut output by 1.2 million barrels of oil per day (bopd) in 2017, energy think tank Wood Mackenzie has predicted that the annual crude price average will stand between $ 53 to $ 58 per barrel. It may further increase to $ 60 to $ 65 per barrel by May if non-OPEC members meet their commitment to trim output by 558,000 bopd.

Moreover, Sampe said that 80 to 90 percent of domestic LNG production was allocated topthe electricity sector. Therefore, he said it was important for state owned electricity firm Perusahaan Listrik Negara (PLN) to ensure the growth of LNG demand in its electricity procurement business plan (RUPTL). “In general, PLN has yet to use gas as the main energy source for electricity generation. Gas has just been used for peaker plants‘ that run only when the demand is at peak,” Sampe said. 

PLN has forecast that it will need about 2,000 billion British thermal units per day (bbtud) of natural gas supply by 2019, twice as much as today. Meanwhile, Sampe said the presence of traders and shippers as midstrearn players was crucial in the gas industry, especially considering that many gas producers did not have proper facilities to transport their gas nation Wide by themselves. Indonesia’s gas production reached about 7,883 bbtud throughout 2016, while demand for the country’s industrial sector amounted to 2,750 bbtud.

According to SKK Migas, the  weighted average price of LNG in the upstream sector was at $ 4.36 per mmbtu, While other costs, including shipping, regasification and transmission, reached $4 to $ 6 per mmbtu. SKK Migas has also stated that Indonesia will need to spend at least $24.3 billion until 2030 to develop proper gas infrastructures across the archipelago, including pipelines, liquefaction and regasification facilities. “Indeed, We need massive, integrated infrastructures to boost wider gas utilization that could eventually pave the Way for lower gas prices,” said IGN Wiratmaja Puja, the Energy and Mineral Resources Ministry’s director general of oil and gas.

Jakarta Post, Page-13, Wednesday, Feb, 22, 2017

Jokowi to Welcome Saudi Arabia's King Salman, Investment

Indonesia is seeking closer ties with Saudi Arabia with plans for a special reception to welcome King Salman and his entourage to Jakarta for a state visit that is also expected to spur investment. Jakarta expects the visit may bring US$ 25 billion worth of investment from Saudi investors. The meeting is historic for both of the Muslim-majority countries. The last time a Saudi king visited Jakarta was 47 years ago, when Salman’s father, King Abdul Aziz al-Saud, arrived in 1970.

Salman will bring a huge entourage of around 1,500 people including investors, 10 ministers and 25 princes to accompany him during the state visit. Salman and his entourage will spend time in Jakarta from March 1 to 3 before flying to Bali for a holiday until March 9. The king will spend much of his time in Indonesia during his current tour of Asian countries.

President Joko “Jokowi” Widodo held a limited Cabinet meeting at the State Palace on Tuesday to discuss the special reception for King Salman on March 1, which will see the President welcoming a high-profile guest at the airport for the first time. 

Cabinet Secretary Pramono Anung said Jokowi would also award Indonesia’s highest medal to King Salman when the two held a bilateral meeting at Bogor Palace on the same day. The honor is a symbol of appreciation from Indonesia after Jokowi received the King Abdul Aziz Medal from the king during a state visit to Saudi Arabia in November 2015. 

“This is the first time that the President will welcome King Salman at the airport. It is being done because when the President arrived in Saudi Arabia he was welcomed by King Salman at the door of the aircraft. This shows that the relationship between the two countries is very intimate,” Pramono said.

He added that during the state visit, Saudi Arabia would sign an investment agreement worth $ 6 billion between its oil company Aramco and Indonesia’s stateowned energy giant Pertamina for a refinery revitalization project in Cilacap, Central Java. Other energy projects set to be signed are worth $1 billion. 

“The President expects Saudi Arabia’s total investment to reach $ 25 billion [to be secured during the state visit] ,” Pramono said. Investment Coordinating Board (BKPM) chairman Thomas Lembong said the kingdom would also invest in building lowcost housing in Indonesia. Indonesia and Saudi Arabia will aim to boost five sectors: cultural promotion, a health expert exchange to support the haj and umrah (minor haj) programs, the promotion of moderate Islam through cleric exchange, increased flights between the two countries and cooperation on transborder crime s.

“The President has also informed governors and regional administrations about Saudi Arabia’s interest in investing in tourism across the country,” Lembong said, adding that Indonesia was ready to welcome all investment that Saudi Arabia offered during the state visit.

Deputy Foreign Affairs Minister AM Fachir said Indonesia hoped that King Salman’s decision to spend holiday in Bali would boost Indonesian tourism and attract tourists from the Middle East. “During the meeting Indonesia will also discuss efforts to intensify dialogue with Muslim countries. Other topics to be discussed are the protection of Indonesian citizens in Saudi Arabia, be it‘ those who reside there or those who are doing haj and umrah in Saudi Arabia,” Fachir said.  Fachir said Indonesia would also use the opportunity to lobby the kingdom to increase its haj quota, which is currently at 211,000. Indonesia is the biggest country of origin of pilgrims to the kingdom.

Jakarta Post, Page-2, Wednesday, Feb, 22, 2017

Stimulating the Potential Gas, Tourism and Agriculture

Bojonegoro, one of the districts with a lot of oil and gas. Of course, the Bojonegoro district government Funds (DBH) of oil and gas amount large enough to support the construction.

Bojonegoro Regent, Suyoto manage DBH-oil endowment improve people's welfare. Kang Yoto, close calls have Suyoto improve various regulations in the management of oil and gas DBH, while providing a conducive investment climate for investors.

In this issue, for example, Kang Yoto make regulations regarding the spatial area of ​​oil and gas and agriculture and related regulations empowering local communities in 2011. Then in the second period kepemirnpinannya, he has had local regulations regarding the DBH to be used as an endowment fund.

"Endowment Fund serves to anticipate when DBH obtained Bojonegoro no longer sufficient to finance the construction or oil and gas potential in Bojonegoro has run out. Priority is now spur the potential for oil and gas, tourism and agriculture, "he explained.

Kang Yoto thinking about how endowment funds are also used for college scholarships for children in Bojonegoro. Related Resources endowment that is possible, which is a 100 percent profit participation shares (participating interest or PI) and DBH earned around Rp 1.4 trillion per year.

Assuming a 6 percent interest income Bojonegoro will acquire not less than USD 84 billion per year. "The focus of the endowment is only for the development of human qualities. We send specialists into sub-specialists, so that in the future she can provide the service.

IN INDONESIAN

Memacu Potensi Migas, Wisata dan Pertanian

Kabupaten Bojonegoro, salah satu kabupaten yang menyimpan banyak kandungan minyak dan gas. Tentu saja, pemerintah kabupaten Bojonegoro mendatang Dana Bagi Hasil (DBH) migas jumlahnya yang cukup besar untuk mendukung pembangunan. 

Bupati Bojonegoro, Suyoto mengelola DBH migas menjadi dana abadi meningkatkan kemakmuran rakyat. Kang Yoto, panggilan akrab Suyoto telah membenahi berbagai regulasi dalam pengelolaan DBH migas, sekaligus memberikan iklim investasi yang kondusif bagi investor.

Pada masalah ini misalnya, Kang Yoto membuat Peraturan daerah mengenai ruang wilayah migas dan pertanian serta perda terkait pemberdayaan masyarakat lokal pada 2011. Kemudian di periode kedua kepemirnpinannya, ia telah memiliki Peraturan daerah mengenai DBH untuk dijadikan dana abadi.

“Dana Abadi berfungsi untuk mengantisipasi apabila DBH yang diperoleh Bojonegoro tidak lagi cukup untuk membiayai pembangunan atau potensi migas di Bojonegoro sudah habis. Prioritas kini memacu potensi migas, wisata dan pertanian,” urainya.

Kang Yoto memikirkan bagaimana dana abadi tersebut juga dipergunakan untuk beasiswa perguruan tinggi bagi anak-anak di Bojonegoro. Terkait Sumber dana abadi yang dimungkinkan, yakni 100 persen keuntungan saham partisipasi (participating interest atau PI) dan DBH yang diperoleh sekitar Rp 1,4 triliun per tahun itu.

Dengan asumsi pendapatan bunga 6 persen Bojonegoro akan memperoleh tidak kurang dari Rp 84 miliar per tahun. “Fokus dana abadi ini hanya untuk pembangunan kualitas manusia. Kita menyekolahkan dokter spesialis yang menjadi sub-spesialis, supaya kedepan dia bisa memberikan layanan.

Duta Masyarakat, Page-16, Tuesday, Feb, 22, 2017

FEED study Still Blocked

Development Masela

Study pre-defining the project or pre-front end engineering design (FEED) Abadi field, Masela to know what volume of gas piped can not be started.

Senior Manager of Communications & Relations Inpex Indonesia Usman Slamet said it is still talking with the government related to the continuation of development projects Abadi Field, the Masela block. He hoped that talks with the government to produce the best decision I could have made the project with gas reserves of 10.7 trillion cubic feet (tcf) can be developed. The target, pre FEED can be done early in January 2017.

"Thus, we can start a study of pre-defining the project or pre-front end engineering design [pre FEED]. Clearly, we continue to cooperate with the government to be able to realize the project, "he said.

Meanwhile, Inpex proposed that the project got the rates of return on capital (internal rate of return / IRR) of 15% is appropriate or when similar projects are developed with a floating refinery scheme / FLNG (floating liquefied natural gas).

     In addition, changing the scheme of FLNG into a refinery or ONLNG land (onshore liquefied petroleum gas) in March 2016 to make Inpex propose the replacement of the lost contract term that is used to conduct a study for 10 years as well as additional refining capacity to 9.5 million tonnes per annum (mtpa) and 150 million standard cubic feet per day / MMSCFD gas pipeline.

Meanwhile, clarity on the matter before making preFEED. Unfortunately, the government wants to pre-FEED contractor in advance to see the possibility of gas production pipeline that is larger 474 MMSCFD and 7.5 mtpa of LNG. The government considers the opportunities additional volume of gas pipes will be used for the petrochemical industry, which is planned to be built on the same island with the location of the LNG plant.

The government also thinks the project can run with an IRR of 12% of the replacement contract period missing for seven years or less three years of the proposed investors.

NEXT PROCESS 

Earlier, Deputy Minister of Energy and Mineral Resources (ESDM) Arcandra Tahar said the project should be advanced to the next process of the implementation of the pre-FEED. According to him, the government no longer has the views debated. All clauses negotiated, has been discussed, so that the contractor can begin its activities.

"Clauses negotiated seems already clear. The next step pre FEED. Government is already clear, " he said.

On a separate occasion, the Director of Upstream Chemical Industry of the Ministry of Industry Muhammad Khayam said there are companies that will absorb the gas from the Tangguh project in Bintuni Bay Train III operating in 2020, PT Pupuk Indonesia.

The ministry has proposed the allocation of three companies that will build the plant around the project to the Ministry of Energy and Mineral Resources. Meanwhile, the company PT Pupuk Indonesia needs 240 MMSCFD gas, PT Kaltim Methanol Industries with 130 MMSCFD and PT Elsoro Multi Pratama needs 100 MMSCFD. PT Pupuk Indonesia will build a methanol plant, olefins and polyolefins.

Meanwhile, PT Kaltim Methanol and PT Elsoro Multi Pratama to build a methanol plant. Petrochemical plant construction is expected to cost US $ 3.9 billion to supply gas starting in 2024. He also prepared several other companies that are ready to absorb the gas. This was done, because the volume is relatively large to be absorbed and thus require many companies are prepared to take advantage Masela gas. "The volume of gas is great, so we set up several companies to utilize the gas," he said.

IN INDONESIAN

Pengembangan Blok Masela

Kajian FEED Masih Terganjal

     Kajian pra pendefinisian proyek atau pre front end engineering design (FEED) Lapangan Abadi, Blok Masela untuk mengetahui berapa volume gas yang disalurkan melalui pipa belum bisa dimulai.

Senior Manager Communication & Relation Inpex Indonesia Usman Slamet mengatakan pihaknya masih berbicara dengan pemerintah terkait dengan kelanjutan proyek pengembangan Iapangan Abadi, Blok Masela. Dia berharap agar pembicaraan dengan pemerintah segera membuahkan keputusan terbaik yang bisa membuat proyek dengan cadangan gas sebesar 10,7 trillion cubic feet (tcf) bisa dikembangkan. Targetnya, pre FEED bisa dilakukan awal Januari 2017.

“Dengan demikian, kami bisa memulai kajian pra pendefinisian proyek atau pre front end engineering design [pre FEED]. Yang jelas, kami terus bekerja sama dengan pemerintah untuk dapat mewujudkan proyek itu,” katanya.

Adapun, Inpex mengusulkan agar proyek mendapat angka pengembalian modal (internal rate of return/IRR) sebesar 15% sesuai atau setara ketika proyek dikembangkan dengan skema kilang terapung/FLNG (floating liquefied natural gas).

     Selain itu, pengubahan skema dari FLNG menjadi kilang darat atau ONLNG (onshore liquefied petroleum gas) pada Maret 2016 membuat Inpex mengusulkan penggantian masa kontrak yang hilang yang digunakan untuk melakukan kajian selama 10 tahun serta penambahan kapasitas kilang menjadi 9,5 juta ton per tahun (mtpa) dan 150 million standard cubic feet per day/MMscfd gas pipa.

Adapun, kejelasan mengenai hal tersebut sebelum melakukan preFEED. Sayangnya, pemerintah menginginkan agar kontraktor melakukan pre-FEED terlebih dahulu untuk melihat kemungkinan produksi gas pipa yang lebih besar yakni 474 MMscfd dan LNG sebesar 7,5 mtpa. Pemerintah menganggap peluang penambahan volume gas pipa nantinya bisa dimanfaatkan bagi industri petrokimia yang rencananya akan dibangun di pulau yang sama dengan lokasi kilang LNG.

Pemerintah pun menilai proyek bisa berjalan dengan IRR sebesar 12% dari penggantian masa kontrak yang hilang selama tujuh tahun atau lebih rendah tiga tahun dari usulan investor.

PROSES BERIKUTNYA 

Sebelumnya, Wakil Menteri Energi dan Sumber Daya Mineral (ESDM) Arcandra Tahar menuturkan proyek itu seharusnya bisa melaju ke proses berikutnya yakni pelaksanaan pre-FEED. Menurutnya, pemerintah tidak lagi memiliki pandangan-pandangan yang diperdebatkan. Semua klausul yang di negosiasikan, telah selesai dibahas, sehingga kontraktor bisa memulai kegiatannya.

“Klausul-klausul yang dinegosiasikan sepertinya sudah clear. Step selanjutnya pre FEED. Dari pemerintah sudah clear,”

katanya.

Pada kesempatan terpisah, Direktur lndustri Kimia Hulu Kementerian Perindustrian Muhammad Khayam mengatakan terdapat perusahaan yang juga akan menyerap gas dari proyek Tangguh Train III di Teluk Bintuni yang beroperasi pada 2020 yaitu PT Pupuk Indonesia.

Kementerian itu telah mengusulkan alokasi untuk tiga perusahaan yang akan membangun pabrik di sekitar proyek kepada Kementerian ESDM. Adapun, perusahaan tersebut yakni PT Pupuk Indonesia dengan kebutuhan gas 240 MMscfd, PT Kaltim Methanol lndustri dengan 130 MMscfd dan PT Elsoro Multi Pratama dengan kebutuhan 100 MMscfd. PT Pupuk Indonesia akan membangun pabrik metanol, olefin dan poliolefin. 

Sementara, PT Kaltim Methanol dan PT Elsoro Multi Pratama untuk membangun pabrik metanol. Pembangunan pabrik petrokimia diperkirakan membutuhkan biaya US$ 3,9 miliar dengan pasokan gas yang dimulai pada 2024. Dia pun mempersiapkan beberapa perusahaan lainnya yang siap menyerap gas tersebut. Hal itu dilakukan, karena volume yang harus diserap tergolong besar sehingga membutuhkan banyak perusahaan yang dipersiapkan untuk memanfaatkan gas Masela. “Volume gasnya besar, jadi kami siapkan beberapa perusahaan untuk memanfaatkan gasnya,” katanya.

Bisnis Indonesia, Page-30, Wednesday, Feb, 22, 2017

Don't Dissolved Euphoria Moment

Arguably, the central government is executing its target for economic equality, especially for oil and gas producing regions of the earth. A blessing in the form of the release of Decree No. 37/2016.

In the regulation mentions participation shares (participating interest) on oil and gas blocks in certain areas by 10% shall be given to local owned enterprises (BUMN). No doubt, there has been a complaint from the region in the form of payment relief participation rights. The complaint was eventually heard and answered by such a regulation.

Enterprises are allowed to put the burden on the shoulders first operator of the block. Only when the working area is starting to produce oil and gas, the area can enjoy a little results. The trick, they (enterprises) can menyicil the load becomes longer though his time in the year when the results are plucked directly used to pay debts.

Producing region may have just celebrated the acquisition of 10% participation share it. However, do not forget that the result of the shareholding participation can not be regarded as a money shock. Spirit of the government to equalize the stalled economy is not limited to the ownership rights of participation. The area should be able to use these funds to build a strategic sector that directly influence local economic growth and encouraged.

In any case each work area have expiration respectively. That is, oil and gas in the bowels of the earth that could have stopped flowing at any time and stop getting income areas. Therefore, the area must be able to prepare not only for a good condition but also in even the worst conditions.

National Coordinator of Publish What You Pay (PYWP) Indonesia, Maryati Abdullah said the area which became the oil and gas production activities should take advantage of the circumstances when rolling in revenue. He said, although the area got a revenue-sharing (DBH) oil and gas sector is big enough, the problem of poverty can not be resolved. The key, Local Government establish the endowment fund derived from oil and gas revenues.

The funds are used to prepare the area when the working area in the region stopped producing oil and gas. The reason, of indicators of oil and gas producing local governments do not look like a human development index up to the poverty level.

"The capacity of regional spending it can not necessarily accept the peak production (peak production) with a revenue windfall (high income). He could have the option of endowment fund (endowment). Want saving alone or invested, "he said.

Chairman of the Association of Oil and Gas Producing Regions Faroek Awang said it was preparing enterprises to absorb a 10% participating interest on three areas of work that will be out of contract. The third block is the Central Block, Block East Kalimantan and Sanga-Sanga.

Inaugural occasion, said Awang who also served as governor of East Kalimantan, to absorb the participation shares 10% over the Mahakam block in East Kalimantan through public enterprises Migas PT Mandiri Pratama. "Already. This [BUMD his] Gas Mandiri Pratama for the Mahakam block, "he said.

According to him, the enterprises will continue programs to use the downstream sector as an example for the electricity sector, energy needs for households and industry. He did not deny the ability of oil and gas fields of energy supply will continue to decline. Therefore, it utilizes earnings and other sectors, such as oil palm.

"Revenue-sharing, reduced equalization funds. We tried out the oil and gas and coal development of new renewable energy, the development of the palm oil industry and so on corresponding potential of the region, "he said.

Suyoto Bojonegoro Regent said it had made preparations towards increased production Banyu Urip, Cepu in order not to face problems from both the technical and social aspects. From the aspect of the budget, it also has been preparing for when the additional production does not match the targets set. Meanwhile, in 2017 estimated that the allocation of funds for results (DBH) Bojonegoro oil received Rp 900 billion.

Learning of DBH in 2016, the realization and the target is not suitable for the production of peak Banyu Urip retreat and plan the end of 2015 and deterioration "in oil prices.

As a result, of the Rp 1.1 trillion, the realization of DBH is only about Rp 700 billion. He said he was already preparing for what activities should be suspended when the targeted smaller reception realization.

Meanwhile, ExxonMobil Cepu Limited as operator has a 45% share in Banyu Urip, PT Pertamina EP Cepu has 45%, as well as four regional-owned enterprises, namely PT Blora Patragas Hulu 2.18%, PT Petrogas Jatim

Top Cendana 2.24%, PT Asri Dharma Sejahtera 4.48% and PT Sarana Patra Hulu Cepu has 1.09%.

He also estimates that the new participation shares payment to be completed around 7 years since production first began. "This year, from Rp 1.1 trillion, just him [realized] Rp 700 billion. Do not just look at the plan, budget elasticity that we have got. "

He also is preparing a regulation to establish the endowment fund. Thus, profits and ownership participation also revenue sharing funds could be set aside to prepare the area when no longer receive the benefits of oil and gas. "We are also preparing a Local Regulation for the endowment so that our children can feel the results of the oil and gas sector," he said.

IN INDONESIAN

Jangan Terlarut Euforia Sesaat

Boleh dibilang, pemerintah pusat kini mengeksekusi targetnya untuk pemerataan ekonomi khususnya bagi daerah penghasil minyak dan gas bumi. Berkah itu berupa keluarnya Peraturan Menteri No. 37/2016.

Dalam regulasi itu menyebutkan saham partisipasi (participating interest) atas blok migas di daerah tertentu sebesar 10% wajib diberikan kepada badan usaha milik daerah (BUMD). Tidak dipungkiri, selama ini ada keluhan dari daerah penghasil yakni berupa keringanan pembayaran hak partisipasi. Keluhan itu akhirnya didengar dan terjawab melalui beleid tersebut.

BUMD diperbolehkan menaruh bebannya terlebih dahulu di pundak operator blok tersebut. Barulah ketika wilayah kerja tersebut mulai menghasilkan migas, daerah bisa menikmati sedikit hasilnya. Caranya, mereka (BUMD) bisa menyicil beban tersebut meskipun masanya menjadi lebih panjang bila di tahun tersebut hasil yang dipetik langsung digunakan untuk membayar utang.

Daerah penghasil boleh saja merayakan perolehan saham partisipasi sebesar 10% itu. Namun, jangan lupa bahwa hasil dari kepemilikan saham partisipasi tak bisa dianggap sebagai uang kaget. Semangat pemerintah untuk memeratakan perekonomian tidak terhenti sebatas pada kepemilikan hak partisipasi. Daerah harus bisa memanfaatkan dana tersebut untuk membangun sektor strategis yang berpengaruh langsung terhadap terdorongnya pertumbuhan ekonomi daerah. 

Bagaimana pun juga setiap wilayah kerja memiliki masa kadaluarsanya masing-masing. Artinya, minyak dan gas yang di dalam perut bumi itu bisa saja berhenti mengalir sewaktu-waktu dan daerah berhenti mendapat pemasukan. Oleh karena itu, daerah harus bisa mempersiapkan diri tidak saja untuk kondisi baik tapi juga pada kondisi terburuk sekalipun. 

Koordinator Nasional Publish What You Pay (PYWP) Indonesia, Maryati Abdullah mengatakan daerah yang menjadi tempat kegiatan produksi migas harus memanfaatkan keadaan ketika bergelimang pendapatan. Dia menyebut, meskipun daerah mendapat dana bagi hasil (DBH) sektor migas yang cukup besar, masalah kemiskinan belum bisa terselesaikan. Kuncinya, Pemerintah Daerah membentuk dana abadi yang diambil dari pendapatan sektor migas.

Dana tersebut digunakan untuk mempersiapkan daerah jika wilayah kerja di daerahnya berhenti menghasilkan migas. Pasalnya, indikator capaian pemerintah daerah penghasil migas belum terlihat seperti indeks pembangunan manusia hingga tingkat kemiskinan.

“Kapasitas belanja daerah itu tidak bisa serta merta menerima peak production (produksi puncak) dengan revenue windfall (pendapatan tinggi). Dia bisa punya pilihan untuk endowment fund (dana abadi). Mau nabung saja atau di investasikan," katanya.

Ketua Asosiasi Daerah Penghasil Migas Awang Faroek mengatakan pihaknya sedang menyiapkan BUMD untuk menyerap hak partisipasi 10% atas tiga wilayah kerja yang akan habis masa kontraknya. Ketiga blok itu adalah Blok Tengah, Blok East Kalimantan dan Blok Sanga-Sanga.

Kesempatan perdananya, ujar Awang yang juga menjabat sebagai gubernur Kalimantan Timur itu, untuk menyerap saham partisipasi 10% atas Blok Mahakam melalui BUMD Kalimantan Timur yakni PT Migas Mandiri Pratama. “Sudah. Ini [BUMD-nya] Migas Mandiri Pratama untuk Blok Mahakam," katanya.

Menurutnya, BUMD itu akan meneruskan program-program pemanfaatan ke sektor hilir sebagai contoh untuk sektor ketenagalistrikan, pemenuhan energi bagi rumah tangga dan industri.  Dia tak memungkiri kemampuan lapangan migas menyediakan energi akan terus menurun. Oleh karena itu, pihaknya memanfaatkan pendapatan dan sektor lainnya, seperti kelapa sawit.

“Dana bagi hasil, dana perimbangan berkurang. Kita berusaha di luar migas dan batubara pengembangan energi baru terbarukan, pengembangan industri kelapa sawit dan sebagainya sesuai potensi daerah," katanya.

Bupati Bojonegoro Suyoto mengatakan pihaknya telah melakukan persiapan menuju penambahan produksi Lapangan Banyu Urip, Blok Cepu agar tidak menghadapi masalah baik dari aspek teknis dan sosial. Dari aspek anggaran, pihaknya pun telah mempersiapkan bila penambahan produksi tidak sesuai target yang ditetapkan. Adapun, pada 2017 diperkirakan alokasi dana bagi hasil (DBH) migas yang diterima Kabupaten Bojonegoro sebesar Rp 900 miliar.

     Belajar dari DBH pada 2016, realisasi dan target tidak sesuai karena produksi puncak Banyu Urip mundur dan rencana yakni akhir 2015 serta merosotnya" harga minyak.

     Akibatnya, dari pagu Rp 1,1 triliun, realisasi DBH hanya sekitar Rp 700 miliar. Pihaknya pun telah mempersiapkan kegiatan apa saja yang harus ditunda bila penerimaan yang ditarget lebih kecil realisasinya. 

Adapun, ExxonMobil Cepu Limited sebagai operator memiliki 45% saham Lapangan Banyu Urip, PT Pertamina EP Cepu Memiliki 45%, serta empat Badan Usaha Milik Daerah, yaitu PT Blora Patragas Hulu 2,18%, PT Petrogas Jatim

Utama Cendana 2,24%, PT Asri Darma Sejahtera 4,48% dan PT Sarana Patra Hulu Cepu memiliki 1,09%.

Dia pun memperkirakan pembayaran saham partisipasi baru bisa selesai sekitar 7 tahun sejak produksi pertama dimulai. “Tahun ini, dari Rp 1,1 triliun, tahunya cuma [terealisasi] Rp 700 miliar.  Jangan cuma lihat rencananya, kekenyalan anggaran itu harus kita punya."

Dia pun sedang mempersiapkan beleid untuk membentuk dana abadi. Dengan demikian, keuntungan yang diperoleh dan kepemilikan saham partisipasi juga dana bagi hasil bisa disisihkan untuk mempersiapkan daerah ketika tidak lagi menerima manfaat migas. “Kami juga sedang siapkan Peraturan Daerah untuk dana abadi agar anak-cucu kita bisa merasakan hasil dari sektor migas,” katanya.

Bisnis Indonesia, Page-30, Tuesday, Feb, 21, 2017