Cheap Gas Policy Constrained Market Mechanism

The decline in industrial gas prices from US $ 8-9 per mmbtu to US $ 6 per mmbtu is constrained by the domestic gas market mechanism. Currently, the price of gas in each field is different, so the price of industrial gas can not be equated in all regions. Therefore, the government must establish a certain mechanism to obtain affordable gas prices for the industry.

One way to take over domestic gas trade from the private sector. After that, the government sets the average price of industrial gas, then distributes it to the company.

Executive Director of ReforMiner Institute Komaidi Notonegoro said, so far, the government only looks from a macro perspective and from a user's industry perspective. In fact, it should be seen again the price in the upstream industry, because each gas field has a different price.

Komaidi said that in gas fields that have prices below US $ 6 per mmbtu, gas prices can be in accordance with the wishes of the government. However, in reality the price is more than that, it is difficult to get the price the government wants. To that end, Komaidi said that the government can not force the upstream industry to lower the gas price to the level of US $ 6 per mmbtu.

"Unless the government wants to create mechanisms such as the Bulog Logistics Agency, so the government takes over all gas, then the price is averaged and just sold to consumers. This scheme can be done, because the government is selling. But, if still submitted to the market mechanism, it can not be done like that, because the price of gas in each field is different, "said Komaidi.

In addition, production costs in each region vary. In principle, gas prices will be more expensive in areas where infrastructure is minimal. Meanwhile, which is required to build infrastructure is upstream industry, which is then charged at the selling price.

"The government should be deeper to see it. So, if using market mechanism, can not be equated with industrial gas price. There is supervision allowed, but each field can not be equated, "said Komaidi.

He considered, Presidential Regulation No. 40/2016 on the Pricing of Natural Gas is made based on information that is not intact. As a result, the regulation is difficult to implement. In fact, even in Java Island, it is difficult to realize the maximum industrial gas price of US $ 6 per mmbtu. Moreover, in the eastern part of Indonesia. In fact, most of the gas reserves are in the region.

Industrial Collapsing

Previously, as many as 45 manufacturing factories closed due to high gas prices. Of that total, 36 are rubber glove factories, eight ceramics factories, and one sheet glass factory. The high price of gas has resulted in the competitiveness of national industry down. As a result, local industries are unable to compete with imported goods in the domestic market. This incident continues, so the industry cuts production or even closes the factory, for those who can not bear the burden anymore.

Therefore, the gas user industry asked the government to immediately lower the price of industrial gas from an average of US $ 8-9 per mmbtu to US $ 6 per mmbtu. Especially for the petrochemical industry, the price of gas for raw materials should ideally reach US $ 3 per mmbtu. This decline is not negotiable, given that many companies are closing the factory.

Moreover, this is regulated in Economic Package II released in October 2015. Currently, the decline in gas prices is only enjoyed by three industrial sectors, namely petrochemical, steel, and fertilizer.

This incentive also can only be obtained by state-owned companies. The Ministry of Industry (Kemenperin) pushed two other industrial sub-sectors to get this incentive, namely ceramics and glass. Chairman of the Association of Glass Glasses and Safety (AKLP) Yustinus Gunawan said, national glass industry can not compete if the price of gas is still high. Glass industry players buy gas at a price of US $ 8-9 per mmbtu, while gas prices in other Asean countries reach US $ 5 per mmbtu.

IN INDONESIA

Kebijakan Gas Murah Terkendala Mekanisme Pasar

Penurunan harga gas industri dari level US$ 8-9 per mmbtu menjadi US$ 6 per mmbtu terkendala mekanisme pasar gas domestik. Saat ini, harga gas di setiap lapangan berbeda-beda, sehingga harga gas industri tidak dapat disamakan di semua daerah. Oleh sebab itu, pemerintah harus menetapkan mekanisme tertentu untuk mendapatkan harga gas yang terjangkau bagi industri. 

Salah satu caranya dengan mengambil alih perdagangan gas dalam negeri dari swasta. Setelah itu, pemerintah menetapkan harga rata-rata gas industri, lalu mendistribusikan ke perusahaan.

Direktur Eksekutif ReforMiner Institute Komaidi Notonegoro mengatakan, selama ini, pemerintah hanya melihat dari perspektif makro dan dari pandangan industri pengguna. Padahal, harus dilihat kembali harga di industri hulu, karena setiap lapangan gas memiliki harga yang berbeda.

Komaidi mengatakan, di lapangan gas yang memiliki harga di bawah US$ 6 per mmbtu, harga gas bisa sesuai keinginan pemerintah. Tetapi, kenyataannya harganya lebih dari itu, sulit mendapatkan harga yang diinginkan pemerintah. Untuk itu, Komaidi menilai pemerintah tidak dapat memaksakan industri hulu menurunkan harga gas hingga level US$ 6 per mmbtu.

“Kecuali, kalau pemerintah mau membuat mekanisme seperti Badan Urusan Logistik Bulog, sehingga pemerintah sebagai take over seluruh gas, kemudian harganya dirata-rata dan baru dijual ke konsumen. Skema ini bisa dilakukan, karena pemerintah yang jual. Tapi, kalau masih diserahkan ke mekanisme pasar, tidak bisa dilakukan seperti itu, karena harga gas di tiap lapangan berbeda-beda,” kata Komaidi. 

Selain itu, biaya produksi di setiap daerah berbeda-beda. Prinsipnya, harga gas akan lebih mahal di daerah yang infrastrukturnya minim. Sementara itu, yang diharuskan membangun infrastruktur adalah industri hulu, yang kemudian dibebankan di harga jual.

“Pemerintah harus lebih dalam untuk melihatnya. Jadi, jika menggunakan mekanisme pasar, tidak bisa disamakan harga gas industri. Ada pengawasan boleh, tapi tiap lapangan tidak bisa disamakan,” ujar Komaidi.

Dia menilai, Peraturan Presiden Nomor 40/2016 tentang Penetapan Harga Gas Bumi dibuat berdasarkan informasi yang tidak utuh. Alhasil, regulasi itu sulit untuk diimplementasikan. Bahkan, di Pulau Jawa sekalipun, sulit mewujudkan harga gas industri maksimal US$ 6 per mmbtu. Apalagi, di wilayah Indonesia bagian timur. Padahal, sebagian besar cadangan gas berada di wilayah tersebut.

Industri Kolaps

Sebelumnya, sebanyak 45 pabrik industri manufaktur tutup akibat mahalnya harga gas. Dari jumlah itu, sebanyak 36 merupakan pabrik sarung tangan karet, delapan pabrik keramik, dan satu pabrik kaca lembaran. Tingginya harga gas telah mengakibatkan daya saing industri nasional turun. Akibatnya, industri lokal kalah bersaing dengan barang impor di pasar domestik. Kejadian ini terus berlangsung, sehingga industri memangkas produksi atau bahkan menutup pabrik, bagi yang tidak sanggup lagi memikul beban.

Oleh sebab itu, industri pengguna gas meminta pemerintah segera menurunkan harga gas industri dari rata-rata US$ 8-9 per mmbtu menjadi US$ 6 per mmbtu. Khusus industri petrokimia, harga gas untuk bahan baku idealnya mencapai US$ 3 per mmbtu. Penurunan ini sudah tidak dapat ditawar lagi, mengingat sudah banyak perusahaan yang menutup pabrik.

Apalagi, hal ini diatur dalam Paket Ekonomi II yang dirilis Oktober 2015. Saat ini, penurunan harga gas hanya dinikmati oleh tiga sektor industri, yakni petrokimia, baja, dan pupuk.

Insentif ini juga hanya bisa diperoleh perusahaan BUMN. Kementerian Perindustrian (Kemenperin) mendorong dua subsektor industri lain mendapatkan insentif ini, yakni keramik dan kaca. Chairman III Asosiasi Kaca Lembaran dan Pengaman (AKLP) Yustinus Gunawan mengatakan, industri kaca nasional tidak bisa bersaing jika harga gas masih tinggi. Para pelaku industri kaca membeli gas dengan harga mencapai US$ 8-9 per mmbtu, sedangkan harga gas di negara Asean lainnya mencapai US$ 5 per mmbtu.

Investor Daily,  Page-10, Tuesday, October 17, 2017

Indonesian Fertilizer Push the Gas Price Contract Formula Scheme

The high price of industrial gas in Indonesia (US $ 6 per mmbtu) plus gas contracts still using Take or Pay (TOP) scheme make Pupuk lndonesia difficult to compete in the fertilizer industry. Therefore, President Director of PT Pupuk Indonesia Aas Asikin Idat claimed to encourage new gas contracts in 10 fertilizer companies under the Pupuk Indonesia Group using Formula Scheme.

"We are negotiating to eliminate the TOP Scheme For new contracts, use Formula Scheme," said Aas at the office of the Ministry of SOEs, Jakarta yesterday. The TOP scheme is claimed to be burdensome to the fertilizer industry because the company has to pay to suppliers even if the gas is not used. The use of Formula Scheme is more favorable to the fertilizer industry because gas prices follow the price of fertilizers and ammonia.

IN INDONESIA

Pupuk Indonesia Dorong Skema Formula Kontrak Harga Gas

Harga gas industri di Indonesia yang dinilai masih tinggi (US$ 6 per mmbtu) ditambah kontrak gas yang masih menggunakan Skema take or pay (TOP) membuat Pupuk lndonesia sulit bersaing di industri pupuk. Karena itu, Direktur Utama PT Pupuk Indonesia Aas Asikin Idat mengaku akan mendorong kontrak-kontrak gas baru di 10 perusahaan pupuk di bawah Pupuk Indonesia Group menggunakan Skema formula.

"Kita negosiasi Untuk menghilangkan Skema TOP-nya. Untuk kontrak-kontrak baru, pakai Skema formula," ujar Aas di Kantor Kementerian BUMN Jakarta, kemarin. Skema TOP diakui memberatkan industri pupuk karena perusanaan harus membayar ke pemasok meski gas tidak digunakan. Penggunaan Skema formula, lebih menguntungkan lndustri pupuk sebab harga gas mengikuti harga pupuk dan amonia.

Media Indonesia,  Page-18, Tuesday, October 17, 2017

Indonesian Fertilizer Asks for Gas Price Decrease

PT Pupuk Indonesia asks the government to again lower the gas price for the industry, especially the fertilizer industry. Because the current gas price in Indonesia set by the government of USD 6 per MMBTU is still considered too expensive.

President Director of Indonesian Fertilizer Aas Asikin Idat said that currently the world fertilizer production has been oversupply with the production of 240 million tons. Whereas its use is only about 180 million tons. With the excess supply of fertilizers in the world, then that will mendapakan place is low cost fertilizer producers. Unfortunately, high gas prices in Indonesia make the cost of making fertilizer in the country was relatively high.

"We're talking about the world's supply of 240 million tons, while the world's consumption is only 180 million tons, so it's over supply, it's really competing, who can enter the 180 million market is good and low cost companies. , the price of gas for the manufacture of fertilizers is high, and we are the highest, "he said at the Ministry of SOEs, Jakarta.

He mentioned that gas prices obtained by fertilizer producers in other countries average about USD 1 to USD 3 per MMBTU. While in Indonesia gas price reaches USD 6 per MMBTU. Though gas covers 70% of the cost components to be issued by the company. Aas wants the gas price to drop to USD 3 as applicable in some countries in the world.

Deputy of Agro Industry and Pharmaceutical Enterprises Ministry of State-Owned Enterprises Wahyu Kuncoro added that the consumption of fertilizer factory gas owned by Pupuk Indonesia is very wasteful. Though the new plant usually consume about 24 MMBTU per ton.

"Well, the average gas consumption is quite wasteful if not the range of 29-30 MMBTU per tonne, the new plant at an average of 24 MMBTU, so wasteful gas consumption and high gas prices," he said.

In addition, gas distribution is mostly using take or pay patterns. Although the gas is not used, the company still has to pay.

"The gas supply model is mostly take or pay." The desire for CnC, my friends have made a study if the gas price remains USD 6 per MMBTU, whereas the economy is USD 4 per MMBTU. Gas is take or pay, so used or not to be paid "he said.

IN INDONESIA

Pupuk Indonesia Minta Penurunan Harga Gas

PT Pupuk Indonesia meminta pemerintah kembali menurunkan harga gas untuk industri, khususnya industri pupuk. Pasalnya, saat ini harga gas di Indonesia yang ditetapkan pemerintah sebesar USD 6 per MMBTU masih dianggap terlalu mahal.

Direktur Utama Pupuk Indonesia Aas Asikin Idat mengungkapkan, saat ini produksi pupuk dunia sudah oversupply dengan jumIah produksi 240 juta ton. Padahal pemakaiannya hanya sekitar 180 juta ton. Dengan berlebihnya pasokan pupuk didunia, maka yang akan mendapakan tempat adalah produsen-produsen pupuk yang ongkosnya rendah.  Sayangnya, harga gas di Indonesia yang tinggi membuat ongkos pembuatan pupuk di Tanah Air pun relatif tinggi.

"Kita bicara suplai dunia saat ini 240 juta ton, sedangkan pemakaian dunia hanya 180 juta ton. Jadi sudah over supply. Ini betul-betuI sangat bertanding, siapa yang bisa masuk ke pasar 180 juta adalah yang perusahaan baik dan biayanya rendah. PermasaIahan di Indonesia, harga gas untuk pembuatan pupuk itu reIatif tinggi. Bahkan kita tertinggi,” katanya di Kementerian BUMN, Jakarta.

Dia menyebutkan, harga gas yang diperoleh produsen pupuk di negara lain rata-rata sekitar USD 1 hingga USD 3 per MMBTU. Sedangkan di Indonesia harga gas mencapai USD 6 per MMBTU. Padahal gas meliputi 70% dari komponen biaya yang harus dikeluarkan perseroan. Aas menginginkan agar harga gas bisa turun hingga USD 3 seperti yang berlaku di beberapa negara di dunia.

Deputi Bidang Usaha Industri Agro dan Farmasi Kementerian BUMN Wahyu Kuncoro menambahkan, konsumsi gas pabrik pupuk yang dimiliki Pupuk Indonesia sangat boros. Padahal pabrik baru biasanya konsumsinya sekitar 24 MMBTU per ton. 

"Nah, rata-rata konsumsi gas cukup boros kalau tidak salah kisaran 29-30 MMBTU per ton. Pabrik baru itu di rata-rata 24 MMBTU. Jadi konsumsi gas yang boros dan harga gas tinggi," ungkapnya.

Selain itu, poIa penyaluran gas pun sebagian besar menggunakan pola take or pay. Meskipun gas tersebut tidak digunakan perseroan tetap harus membayar.

"Model suplai gas itu sebagian besar take or pay. Keinginan untuk CnC, teman-teman sudah buat kajian kalau harga gas tetap USD 6 per MMBTU, padahal keekonomiannya USD 4 per MMBTU. Gas itu take or pay, jadi dipakai atau tidak harus dibayar" katanya.

Koran Sindo,  Page-20, Tuesday, October 17, 2017

Pacific Oil and Gas Investment in Electricity Business

Independent energy company Pacific Oil & Gas is exploring new investment in the energy sector in Indonesia. The addition is particularly in the upstream oil and gas and electricity industry sectors.

PO & G Indonesia President Director Kusnan Rahmin said PO & G's main goal is to work with PT Pertamina to develop new oil and gas blocks. Also build and operate power plant projects.

The ultimate goal, to help the government meet the growing demand for energy.

"Initially, our business started in Indonesia and so far we have invested in three oil and gas blocks in Sumatara", he said.

PO & G controls 25% non-operator interest in Jambi Merang Block, South Sumatra, has 55% interest in Kisaran Block in North Sumatra and owns 55% of Non-Conventional Oil Range Blocks. Overseas, PO & G builds and operates Xiamen's Combined Cycle Gas Turbine power plant up to 780 MW in Fujian, China. This Xiamen PLTGU is 100% owned by PO & G.

As we know, the government launched the 35,000 Megavvatt (MW) development acceleration program until 2019. Of the 35,000 MW or 35 GW, about 7 GW of them are Gas Power.

"Therefore, PO & G is very ready to help the government achieve the development targets, especially new units of PLTG, because we mastered the technology and experienced for it," he explained.

IN INDONESIA

Pacific Oil and Gas 5 Investasi di Bisnis Ketenagalistrikan

Perusahaan energi independen Pacific Oil & Gas sedang menjajaki penambahan investasi baru di sektor energi di Indonesia. Penambahan itu khususnya di sektor industri hulu migas dan ketenagalistrikan.

Presiden Direktur PO&G Indonesia Kusnan Rahmin mengatakan, tujuan utama PO&G adalah menjalin kerjasama dengan PT Pertamina untuk mengembangkan blok-blok migas baru. Juga membangun serta mengoperasikan proyek-proyek pembangkit listrik.

Tujuan akhirnya, membantu pemerintah memenuhi pertumbuhan permintaan energi yang terus meningkat. 

"Awalnya, bisnis kami bermula di Indonesia dan sejauh ini kami telah berinvestasi di tiga blok migas di Sumatara”, ujarnya.

PO&G menguasai 25% non-operator interest di Blok Jambi Merang, Sumatra Selatan, memiliki 55% interest Blok Kisaran di Sumatra Utara dan memiliki 55% interest Blok Migas Non Konvensional Kisaran. Di luar negeri, PO&G membangun dan mengoperasikan pembangkit listrik Combined Cycle Gas Turbine Xiamen hingga 780 MW di Fujian, China. PLTGU Xiamen ini 100% milik PO&G.

Seperti yang kita tahu, pemerintah mencanangkan program percepatan pembangunan 35.000 Megavvatt (MW) hingga tahun 2019. Dari 35.000 MW atau 35 GW tersebut, sekitar 7 GW di antaranya adalah Pembangkit Listrik Tenaga Gas. 

“Karena itu, PO&G sangat siap membantu pemerintah mencapai target pembangunan tersebut, terutama unit-unit baru PLTG, sebab kami menguasai teknologi dan berpengalaman untuk itu," terangnya.

Kontan, Page-14, Tuesday, October 17, 2017

Fertilizers hit by gas prices

The high price of industrial gas in Indonesia had an impact on the loss of several fertilizer factories owned by PT Pupuk Indonesia. Among 14 fertilizer factories owned by the company, five fertilizer factories are estimated to be losers due to gas prices and aging of old plants. Main Director of PT Pupuk Indonesia Aas Asikin Idat revealed that the ideal gas price for the fertilizer industry is USD 3 per mmbtu.

"Because, our competitor factories in the international world already enjoy the gas price of USD 1.5 to USD 3 per mmbtu. Meanwhile, fertilizer factory in the country must pay USD 6 per mmbtu, "he said yesterday (16/10).

According to him, it is further exacerbated by the excess supply of global fertilizers and the decline of world oil prices that have an impact on the decline in world fertilizer prices. The world supply of fertilizers currently reaches 240 million tons, while the world fertilizer demand is only 180 million tons per year.

World fertilizer prices fell and USD 350 to USD 400 per ton to USD 210 to USD 220 per ton. Meanwhile, the cost of production of fertilizer in Indonesia can reach USD 240 to USD 260 per ton.

IN INDONESIA

Pupuk Terpukul Harga Gas

Tingginya harga gas industri di Indonesia berdampak terhadap meruginya beberapa pabrik pupuk milik PT Pupuk Indonesia. Di antara 14 pabrik pupuk milik perseroan, lima pabrik pupuk diperkirakan merugi lantaran harga gas dan usia pabrik yang sudah tua. Direktur Utama PT Pupuk Indonesia Aas Asikin Idat mengungkapkan, harga gas ideal untuk industri pupuk adalah USD 3 per mmbtu. 

”Sebab, pabrik pesaing kita di dunia internasional sudah menikmati harga gas sebesar USD 1,5 hingga USD 3 per mmbtu. Sedangkan saat ini pabrik pupuk di tanah air harus membayar USD 6 per mmbtu," paparnya kemarin (16/10).

Menurut dia, hal itu semakin diperparah dengan adanya kelebihan pasokan pupuk global dan turunnya harga minyak dunia sehingga berdampak terhadap penurunan harga pupuk dunia. Pasokan pupuk dunia saat ini mencapai 240 juta ton, sedangkan kebutuhan pupuk dunia hanya 180 juta ton per tahun.

Harga pupuk dunia turun dan USD 350 hingga USD 400 per ton menjadi USD 210 hingga USD 220 per ton. Sementara itu, biaya pokok produksi pupuk di Indonesia bisa mencapai USD 240 hingga USD 260 per ton.

Jawa Pos, Page-5, Tuesday, October 17, 2017

Margin Restrictions for All Contracts

A maximum restriction of the commercial gas margin policy of 7% will be retroactive, applicable for all ongoing contracts as well as new contracts.

Chairman of the Indonesian Natural Gas Trader Association (INGTA) Sabrun Jamal said that in a meeting with the government related to the gas trading margin has been established there will be no transitional rules.

All contracts will follow the new rules, namely a maximum of 7% margin set by the government. Thus, consumers can calculate the gas price based on the formula so that no longer need to do the process in business.

"The contract is running [as well], there is a revision of all contracts," he said.

In the discussion on the beleid margin of gas nubagas, INGTA proposes five things. First, the adjustment of the upstream gas price component refers to Presidential Regulation No. 40/2016 on Gas Pricing, which is US $ 6 per MMBtu.

Secondly, the decrease of the tariff for gas transportation or toll fee. Third, the private sector's trade margin to be equated with state-owned enterprises (BUMN). Fourth, the depreciation of new infrastructure investment pipeline of 5 years.

Fifth, the commercial cost is calculated based on the upstream price, ie the price at the mouth of the well plus the toll fee of loss, and the volume reduction during delivery. Distribution tariffs are structured with capital plus 12% return on investment (IRR), operating and maintenance costs 10% of capital, taxes and dues. Then, for a 10% commercial cost and upstream price that accommodate marketing costs, risks and margins.

Previously, Sabrun mentioned that it only gets a 7.2% margin from upstream gas price which is used for operational cost, investment and small margin although not explained in detail the division. Meanwhile, 92.8% is a component of upstream gas price cost and gas transportation costs to be paid to gas producers and license holders of gas transponency.

He also said that with a 7% margin restriction, the government proposed to cut costs that are not needed so that the regulation can be run.

Fees such as land rent, volume reduction during delivery are promised will be eliminated. Later, the Downstream Oil and Gas Regulatory Agency (BPH Migas) will conduct an evaluation of the elimination of such costs after the rules are released.

"We ask for some, there are unusual charges in our business," he said.

PR & CSR Manager PT Pertamina Gas Hatim Ilwan said that it supports the rule. The government that conducts IRR for pipeline owners, according to him, has already considered the impact on the pipeline owners as well as the gas utilization industry.

IN INDONESIA

Pembatasan Margin untuk Semua Kontrak

Kebijakan pembatasan margin niaga gas maksimal sebesar 7% akan berlaku surut, yaitu diberlakukan untuk semua kontrak baik yang sedang berjalan maupun kontrak baru.

Ketua Indonesian Natural Gas Trader Association (INGTA) Sabrun Jamal mengatakan bahwa dalam rapat dengan pemerintah terkait dengan margin niaga gas telah ditetapkan tidak akan ada peraturan peralihan.

Semua kontrak akan mengikuti aturan baru tersebut, yaitu margin maksimal 7% yang ditetapkan pemerintah. Dengan demikian, konsumen bisa menghitung harga gas berdasarkan formula tersebut sehingga tidak perlu lagi melakukan proses secara bisnis.

“Kontrak yang berjalan [kena juga], ada revisi kontrak semua,” ujarnya. 

Dalam rapat pembahasan beleid margin niagas gas, INGTA mengusulkan lima hal. Pertama, penyesuaian komponen harga gas bumi di hulu mengacu pada Peraturan Presiden Nomor 40/2016 tentang Penetapan Harga Gas Bumi, yaitu US$ 6 per MMBtu.

Kedua, penurunan tarif pengangkutan gas atau toll fee. Ketiga, margin niaga badan usaha swasta agar disamakan dengan badan usaha milik negara (BUMN). Keempat, depresiasi pipa investasi infrastruktur baru sebesar 5 tahun. 

Kelima, biaya niaga dihitung berdasarkan harga hulu, yakni harga di mulut sumur ditambah toll fee kerugian, dan pengurangan volume selama penghantaran. Tarif penyaluran disusun dengan modal ditambah tingkat pengembalian investasi (IRR) 12%, biaya operasi dan perawatan 10% dari modal, pajak dan iuran. Kemudian, untuk biaya niaga sebesar 10% dan harga hulu yang mengakomodasi biaya pemasaran, risiko dan margin.

Sebelumnya, Sabrun menyebut selama ini hanya memperoleh margin 7,2% dari harga gas hulu yang digunakan untuk biaya operasi, investasi dan margin yang kecil meskipun tidak dijelaskan secara rinci pembagiannya. Sementara itu, 92,8% merupakan komponen biaya harga gas hulu dan biaya transportasi gas yang harus dibayar ke produsen gas serta pemegang izin transponasi gas.

Dia pun menuturkan bahwa dengan pembatasan margin 7 % , pemerintah diusulkan untuk memangkas biaya yang tidak diperlukan agar regulasi itu bisa dijalankan.

Biaya-biaya seperti sewa lahan, pengurangan volume selama penghantaran dijanjikan akan dihilangkan. Nantinya, Badan Pengatur Hilir Minyak dan Gas Bumi (BPH Migas) akan melakukan evaluasi terhadap penghapusan biaya tersebut setelah aturan dirilis.

“Kami minta ada beberapa, ada pungutan yang tidak wajar di bisnis kita," katanya.

PR & CSR Manager PT Pertamina Gas Hatim Ilwan mengatakan bahwa pihaknya mendukung aturan tersebut. Pemerintah yang melakukan IRR bagi pemilik pipa, menurutnya, sudah mempertimbangkan dampaknya terhadap para pemilik pipa juga industri pemanfaat gas.

Bisnis Indonesia, Page-30, Tuesday, October 17, 2017

Oil, Gas firms to be exempt from GW tax

The government is formulating a decree that will exempt upstream oil and gas contractors from paying groundwater (GW) tax, a move that will ease their burdens when they operate under the gross-split scheme.

At present, groundwater tax is calculated by each regency or municipal administration, with contractors operating in accordance to the water obtaining value (NPA) formulated by the Energy and Mineral Resources Ministry through Decree No. 20/2017.

Upstream contractors pay such a tax because they use huge amounts of groundwater to extract oil and gas. This often- happens when contractors try to maintain the productior of mature and depleted oil fields through enhanced oil recovery (EOR) activities.

“The tax should only apply to groundwater from aquifers that can be utilized for human activities. However, the Water that comes from oil and gas fields is toxic and has no use for humans That’s why We urged contractors to transfer such Water to reservoirs,” the ministry’s oil and gas director general, Ego Syahrial said recently.

“Therefore, we want to nullify the NPA of such water so that contractors don’t need to pay the groundwater tax.”

Ego said, for instance, the production of 100,000 barrels of oil at the Minas Field in Riau Islands required 4.9 million barrels of water. As a result, the field’s operator, PT Chevron Pacific Indonesia, the local unit of American oil and gas giant Chevron, was forced to pay in advance the groundwater tax to the regional administration before eventually being reimbursed by the central government through a cost recovery scheme.

However, as the government intends to replace the cost recovery scheme 'With the gross-split sliding scale for all new contracts, such a tax exemption will be crucial to make upstream projects more economical for contractors. The new scheme will no longer require the government to reimburse exploitation costs to contractors during the length of their contracts. As a result, companies`will carry the burden of these costs themselves.

Moreover, as of today the government has yet to complete the drafting process of the government regulation (PP) on gross split taxations, resulting in further uncertainties among upstream contractors.

Pri Agung Rakhmanto, a researcher with the Jakarta-based energy think-tank ReforMiner Institute, said it was the right move for the government to exempt contractors from the groundwater tax because the collection of such a tax violated the assume-and-discharge provisions stated in their production sharing contracts (PSC).

As assume-and-discharge system is touted to guarantee that investors do not have to pay additional fees or taxes during the long duration of their PSC, many of which last for more than 30 years.

“With the cost recovery scheme, it was natural for the government to apply an assume-and-discharge system because the contractors only helped produce oil and gas for the country But with the gross-split scheme, contractors had to bear all the risks, making upstream projects unattractive to them,” Pri Agung said.

The government hopes that EOR activities result in the recovering of around 2.5 billion barrels of oil in reserves by 2050. Hence, a high-tax system is feared to discourage investors from undertaking the costly EOR activities in the future.

The country’s proven oil reserves dropped to 2,959 million stock tank barrels (mmstb) at the end of last year from around 5,000 mmstb in the early 2000s due to a lack of new discoveries. Of the reserves, 55.45 percent was depleted and 3.95 percent had not been developed.

"Therefore, Energy and Mineral Resources Minister [Ignasius] Jonan has underlined the importance of making production costs more efficient. Companies should operate efficiently so that they will be able to undertake EOR activities,” said Saleh Abdurrahman, the secretary-general of the National Energy Board (DEN).

Jakarta Post, Page-13, Monday, October 16, 2017

Blunder Saka Energy in Two Oil and Gas Blocks

Saka Energi now wants to buy back its stake in Sanga-Sanga from Pertamina.

PT Saka Energi Indonesia is being upset. Because the Block Sanga-Sanga and Block Muriah, Kepodang field that has been purchased now the status is not clear. Even rumored subsidiary of PT Perusahaan Gas Negara Tbk (PGN) is willing to buy back shares Sanga-Sanga Block because the status of the block has been given to PT Pertamina.

As is known, Saka Energy bought 26.25% stake in BP in Sanga-Sanga Block in November 2016 with a value of US $ 30 million. Within three months of the purchase, in January 2017, the Minister of Energy and Mineral Resources (EMR) Ignatius Jonan handed over 100% of the Sanga-Sanga Block to Pertamina.

Jonan's decision was in accordance with the Minister of Energy and Mineral Resources Regulation No. 30 of 2016 on Management of Working Areas of Oil and Gas which will end Samanya Contract of Work published on October 13, 2016. Thus, if you want to participate in managing Sanga-Sanga Block, Saka must buy shares Sanga -Sanga from from Pertamina.

The purchase decision at that time was questioned by the Economist and Energy Observer of Gajah Mada University (UGM), Fahmy Radhi said that Saka's move to buy BP shares in November 2016 in Sanga-Sanga Block was wrong.

"The Sanga-Sanga Block is handed over to the Government," Fahmy said.

Fahmy suspects that the purchase of BP shares in the Sanga-Sanga Block is Saka Energi's strategy to become an operator in Sanga-Sanga.

"Saka Energy's decision to buy Sanga-Sanga shares because in addition to the potential reserve is still large, Saka also still want to become an operator," he said.

Reportedly, Saka Energy has applied for a loan of US $ 285 million to buy Sanga-Sanga shares from Pertamina. Unfortunately, President Director Saka Energi Tumbur Parlindungan did not answer the question. He just said, Saka's efforts to participate in the Sanga-Sanga contract is purely to increase production.

"Saka as a joint operator with Eni through Vico in Sanga-Sanga Block is committed to increase production as we did in the first half of 2017," he said.

Tumbur also once asserted, Saka's decision to buy shares in the Sanga-Sanga Block did not bring harm to the company. Because all the risks have been calculated before doing a corporate action.

"Oil prices go up, at least, that's the advantage," he said.

Saka Energi also made a blunder in the purchase of shares in Blok Muriah, Kepodang Field in October 2014 ago. Currently Kepodang Field production is gradually down from 116 mmscfd to 80 mmscfd. Unfortunately, Tumbur did not answer the question as to why it bought 20% stake from Sunny Ridge Offshore Limited for US $ 40 million. Fahmy explained that the purchase of shares in Blok Muriah was also the fault of Saka Energy.

"Kahar Kepodang field one of the blunders by Saka Energy, the blunders must be harmful, not only for Saka, but also for the parent, PGN.

IN INDONESIA

Blunder Saka Energi di Dua Blok Migas

Saka Energi kini malah ingin membeli kembali sahamnya di Sanga-Sanga dari Pertamina.

PT Saka Energi Indonesia sedang gundah gulana. Pasalnya Blok Sanga-Sanga dan Blok Muriah, Lapangan Kepodang yang sudah dibeli kini statusnya tidak jelas. Bahkan dikabarkan anak usaha PT Perusahaan Gas Negara Tbk (PGN) itu rela membeli kembali saham Blok Sanga-Sanga karena status blok itu sudah diberikan kepada PT Pertamina.

Seperti diketahui, Saka Energi membeli 26,25% saham BP di Blok Sanga-Sanga pada November tahun 2016 dengan nilai US$ 30 juta. Berselang tiga bulan dari pembelian itu, pada Januari 2017, Menteri Energi dan Sumber Daya Mineral (ESDM) Ignasius Jonan menyerahkan 100% saham Blok Sanga-Sanga kepada Pertamina.

Keputusan Jonan itu sudah sesuai Peraturan Menteri ESDM Nomor 30 tahun 2016 tentang Pengelolaan Wilayah Kerja Minyak dan Gas Bumi yang akan berakhir Kontrak Kerja Samanya yang terbit pada 13 Oktober 2016. Dengan demikian, jika ingin ikut mengelola Blok Sanga-Sanga, Saka wajib membeli saham Sanga-Sanga dari dari Pertamina.

Keputusan pembelian saat itu sempat dipertanyakan Pengamat Ekonomi dan Energi Universitas Gajah Mada (UGM), Fahmy Radhi bilang, langkah Saka membeli saham BP pada November 2016 di Blok Sanga-Sanga kala itu adalah keputusan yang salah.

"Pasalnya Blok Sanga-Sanga malah diserahkan kepada Pemerintah," kata Fahmy.

Fahmy menduga, pembelian saham BP di Blok Sanga-Sanga merupakan siasat Saka Energi untuk menjadi operator di Sanga-Sanga. 

"Keputusan Saka Energi membeli saham Sanga-Sanga karena di samping potensi cadangan masih besar, Saka juga tetap ingin menjadi operator," katanya.

Kabarnya, Saka Energi sudah mengajukan pinjaman hingga US$ 285 juta untuk membeli lagi saham Sanga-Sanga dari Pertamina. Namun sayang, Direktur Utama Saka Energi Tumbur Parlindungan tidak menjawab soal itu. Dia hanya bilang, upaya Saka tetap ikut dalam kontrak Sanga-Sanga adalah murni untuk meningkatkan produksi. 

"Saka sebagai operator bersama dengan Eni melalui Vico di Blok Sanga-Sanga berkomitmen meningkatkan produksi seperti yang kami lakukan di semester I 2017,“ ujarnya. 

Tumbur juga pernah menegaskan, keputusan Saka membeli saham di Blok Sanga-Sanga tidak membawa kerugian bagi perusahaan tersebut. Sebab semua risiko telah dihitung sebelum melakukan sebuah aksi korporasi. 

"Harga minyak naik. Paling tidak, itu keuntungannya," katanya.

Saka Energi juga melakukan blunder dalam pembelian saham di Blok Muriah, Lapangan Kepodang pada Oktober 2014 lalu. Saat ini produksi Lapangan Kepodang berangsur turun dari 116 mmscfd menjadi 80 mmscfd. Sayangnya, Tumbur tidak menjawab pertanyaan terkait alasan saat itu membeli 20% saham dari Sunny Ridge Offshore Limited senilai US$ 40 juta. Fahmy menerangkan, pembelian saham di Blok Muriah itu juga kesalahan Saka Energi. 

"Kahar lapangan Kepodang salah satu blunder yang dilakukan Saka Energi. Berbagai blunder itu pasti merugikan, tidak hanya bagi Saka, tapi juga bagi induknya, yakni PGN.

Kontan, Page-14, Monday, October 16, 2017

Pertamina Adds Refinery Capacity

The national fuel supply (BBM) will increase. That is in line with the addition of refinery capacity ready to operate next year. Marketing Director of PT Pertamina Muchamad Lskandar said, currently stock average level reached 26 days. If possible, next year the company is ready to increase stock levels up to 30 days.

"But we also follow the demand, if the demand has not been growing fast, the stock level will not rise until 30 days," he said yesterday (15/10).

Currently, Pertamina's total refinery capacity reaches 1.046 million barrels. The figure is from six refineries. Yalkni, UPH Dumai, UP III Plaju, UP IV Cilacap, UP V Balikpapan, UP VI Balongan, and UP VII Kasim. Pertamina gasoline sales per day reached 80 thousand kiloliters.

Sales of diesel reached 60 thousand kilo liters. The details, solar PSO (public service obligation) reached 40 thousand kiloliters and non-PSO diesel 20 thousand kiloliters. New grassroots refinery (NGRR) development, among others, is in Tuban and Bontang. NGRR Tuban, which operates next year with a capacity of 100 thousand kiloliters per day.

Then, there is a Tanjung Uban refinery in Riau with a capacity of twice 20 thousand kiloliters (40 thousand kiloliters). The refinery in Wayame, Maluku, has a capacity of about 10 thousand kiloliters per day and a refinery in Bali of 5 thousand kiloliters per day.

"In addition, there are still some refineries in the area that will operate, some are small and some are big," he said.

Actually, Pertamina has plans to export diesel fuel. However, increased activity in the mining sector has caused increased demand for diesel export plans.

IN INDONESIA

Pertamina Tambah Kapasitas Kilang

Pasokan Bahan Bakar Minyak (BBM) nasional akan bertambah. Itu seiring dengan tambahan kapasitas kilang yang siap beroperasi tahun depan. Direktur Pemasaran PT Pertamina Muchamad lskandar mengatakan, saat ini level stok rata-rata mencapai 26 hari. Jika memungkinkan, tahun depan perseroan siap meningkatkan level stok hingga 30 hari. 

"Tetapi, kami juga mengikuti permintaan. Jika permintaannya belum tumbuh cepat, level stoknya belum sampai akan naik hingga 30 hari. Hanya, secara fasilitas, kami siap,” katanya kemarin (15/10).

Saat ini kapasitas total kilang Pertamina mencapai 1,046 juta barel. Angka tersebut berasal dari enam kilang. Yalkni, UPH Dumai, UP III Plaju, UP IV Cilacap, UP V Balikpapan, UP VI Balongan, dan UP VII Kasim. Penjualan gasoline Pertamina per hari mencapai 80 ribu kiloliter.

Penjualan solar mencapai 60 ribu kilo liter. Perinciannya, solar PSO (public service obligation) mencapai 40 ribu kiloliter dan solar non PSO 20 ribu kiloliter. Pembangunan kilang minyak baru (new grassroots refinery/NGRR), antara lain, ada di Tuban dan Bontang. NGRR Tuban yang beroperasi tahun depan berkapasitas 100 ribu kiloliter per hari.

Lalu, ada kilang Tanjung Uban di Riau dengan kapasitas dua kali 20 ribu kiloliter (40 ribu kiloliter). Kilang di Wayame, Maluku, memiliki kapasitas sekitar 10 ribu kiloliter per hari dan kilang di Bali 5 ribu kiloliter per hari.

"Selain itu, masih ada beberapa kilang di daerah yang akan beroperasi. Ada yang kecil dan ada yang besar," ujarnya.

Sebenarnya Pertamina memiliki rencana untuk mengekspor solar. Namun, meningkatnya aktivitas di sektor pertambangan membuat permintaan solar meningkat Rencana ekspor pun batal.

Jawa Pos, Page-7, Monday, October 16, 2017

SKK Migas Clarifies BPK's Audit

SKK Migas immediately provided clarification regarding the findings of the Supreme Audit Agency (BPK) worth US $ 1.16 billion for the calculation of oil and gas share sharing in 2015. In Summary of I / 2017 Semester Examination Results (IHPS), BPK still found cost- costs that should not be charged in the cost of oil and gas production returned by the government to the contractor (cost recovery).

In addition, BPK discovers the weaknesses of internal control and non-compliance with prevailing laws and regulations. The findings resulted in reduced non-tax state revenues (PNBP) of oil and gas from excessive cost recovery of 2015 worth US $ 956.04 million.

The state can not take advantage of tax funds worth US $ 209.25 million and the potential loss of imposition of fines or tax interest for the fiscal year 2015 worth US $ 11.45 million. Continuity of very low pressure compression rental contract or VLP compression rental service by VICO that is not covered by appropriate implementation guarantees in 2014.

Secretary of Special Unit for Upstream Oil and Gas Business Activities (SKK Migas) Arief Handoko said that the process of clarification is still running. Based on data from SKK Migas, the total findings of US $ 1.16 billion on profit sharing calculations in 2015 amounting to US $ 542.37 million are the issuance of a change of order on the EPC-1 contract of Banyu Urip field production facility, Block Cepu.

BPK assessed that the issuance of the change of order had not been approved by SKK Migas, exceeded the maximum limit, and did not consider the contractual and commercial aspects. In addition, there are penalties for unapplied workmanship as well as imposition of estimated cost charges that are not in accordance with the contract.

Then, there are findings from SKK Migas activities that have not yet audited the cost of Deepwater Asgard ship's drill farm out to the Gulf of Mexico for US $ 266 million. No audit has been conducted, according to the BPK, causing the imposition of the cost of farm out of the vessel has not been able to be reasonably believed.

The BPK also notes receipts other than the late fines of 17 contracted contractors (KKKS), which are income tax, dividend and royalty (PBDR) interest until 2015 worth US $ 209.25 million.

BPK also notes the imposition of fees for remuneration, pension contributions, incentive bonuses, insurance and income tax expense of Foreign Workers (TKA) amounting to US $ 89.94 million. The reasons for BPK's notes are that the charges are not in accordance with Supreme Court decisions, government regulations, Minister of Finance Regulations and Working Procedures (PTK) SKK Migas.

IN INDONESIA

SKK Migas Klarifikasi Temuan BPK

SKK Migas segera memberikan klarifikasi terkait dengan temuan Badan Pemeriksa Keuangan (BPK) senilai US$ 1,16 miliar atas perhitungan bagi hasil minyak dan gas bumi pada 2015. Dalam Ikhtisar Hasil Pemeriksaan Semester (IHPS) I/2017, BPK masih menemukan adanya biaya-biaya yang tidak seharusnya dibebankan dalam biaya produksi migas yang dikembalikan oleh pemerintah kepada kontraktor (cost recovery).

Selain itu, BPK menemukan kelemahan-kelemahan pengendalian internal serta ketidakpatuhan terhadap ketentuan dan perundangan yang berlaku. Temuan itu mengakibatkan berkurangnya pendapatan negara bukan pajak (PNBP) minyak dan gas bumi dari kelebihan pembebanan cost recovery 2015 senilai US$ 956,04 juta.

Negara pun tidak bisa memanfaatkan dana pajak senilai US$ 209,25 juta dan kehilangan potensi dari pengenaan denda atau bunga pajak untuk tahun pajak 2015 senilai US$ 11,45 juta. Kelangsungan pekerjaan kontrak sewa kompresi bertekanan sangat rendah atau VLP compression rental service oleh VICO yang tidak dilindungi jaminan pelaksanaan yang sesuai pada 2014.

Sekretaris Satuan Kerja Khusus Pelaksana Kegiatan Usaha Hulu Minyak dan Gas Bumi (SKK Migas) Arief Handoko mengatakan bahwa saat ini proses klarifikasi masih berjalan. Dari data SKK Migas mencatat total temuan sebesar US$ 1,16 miliar atas perhitungan bagi hasil pada 2015 dengan US$ 542,37 juta diantaranya merupakan penerbitan perubahan order atas kontrak EPC-1 fasilitas produksi lapangan Banyu Urip, Blok Cepu.

BPK menilai penerbitan perubahan order itu belum mendapat persetujuan SKK Migas, melebihi batas maksimal, dan tidak mempertilnbangkan aspek kontraktual dan komersial. Selain itu, terdapat denda keterlambatan pengerjaan yang belum dikenakan juga pembebanan biaya jumlah yang diperkirakan yang tidak sesuai dengan kontrak.

Kemudian, terdapat temuan dari kegiatan SKK Migas yang belum melakukan audit pembebanan biaya farm out kapal pengeboran Deepwater Asgard ke Teluk Meksiko senilai US$ 266 juta. Belum dilakukannya audit, menurut BPK, menyebabkan pembebanan biaya farm out kapal itu belum dapat diyakini kewajarannya.

BPK juga memberi catatan terhadap penerimaan selain denda keterlambatan belum dipungut dari 17 kontraktor kontrak kerja sama (KKKS), yakni berupa pajak penghasilan, bunga deviden dan royalti (PBDR) sampai 2015 senilai US$ 209,25 juta.

BPK pun memberi catatan pada pembebanan biaya atas remunerasi, iuran pensiun, bonus insentif, asuransi serta tunjangan pajak penghasilan Tenaga Kerja Asing (TKA) senilai US$ 89,94 juta. Alasan catatan BPK yakni pembebanan biaya-biaya itu tidak sesuai dengan putusan Mahkamah Agung, peraturan pemerintah, Peraturan Menteri Keuangan dan Pedoman Tata Kerja (PTK) SKK Migas.

Bisnis Indonesia, Page-30, Monday, October 16, 2017