Oil and Gas Companies Wait Certainty of Taxation Rules

Gross Oil and Gas Contract Split

Oil and gas company is still waiting for tax laws used to the cooperation contract (production sharing contract / PSC) scheme for gross proceeds (gross split). This certainty is needed to enable companies to calculate the results in accordance with project economics.

Executive Director of the Indonesian Petroleum Association (IPA) Marjolijn Wajong said, after the issuance of the Minister of Energy and Mineral Resources (ESDM) No. 8 of 2017 concerning oil and gas contracts gross split scheme, there should be a regulation that regulates taxation scheme contract. Because the Government Regulation No. 79 Year 2010 is only dealing with the taxation of PSC cost recovery. "We are still waiting for the regulation of the Ministry of Finance Hope and maybe there will be a new beleid," he said in Jakarta, Wednesday (22/2).

Since the issuance of the norm of the Minister of Energy and Mineral Resources 8/2016, a new oil and gas blocks for which the contract was signed using split gross scheme, namely the Offshore North West Java (ONWJ) managed by PT Pertamina Hulu Energi. The division of revenue sharing government contractors than this block is applied to 32.5: 62.5 for gas and 42.5: 57.5 for oil. President Director of PT Pertamina Hulu Energi (PHE) Mount Sardjono Hadi said the gross contract ONWJ split while still referring to the tax laws that apply today, exactly the same as the contract cost recovery both the type and magnitude. The difference, which is subject to taxation are no longer reimbursed by the government. "In making (count) economically, we use it (the tax laws applicable)," he said.

Nevertheless, it is still waiting to see whether the government will issue a new tax regulations for the PSC's gross split. Because, until now, a regulation governing this type of new oil and gas contracts limited to Regulation 8/2016 alone. He said he hopes there will be a regulation, whether government regulation or regulation of other ministries, which complements the Regulation of the Minister's Gross Split. "We hope there are more Perturan Government or other regulation to support the gross order split is running smooth," said Mount.

Today too, tax specialists Pertamina Hulu Energi continues to see the possibilities of the economic changes that affect the ONWJ. Moreover, taxation is not the only factor that can change the economics of the project. It mentions there are some regulations issued by the Ministry of Energy that allegedly would erode profit sharing stipulated in the contract ONWJ. "Kan is now no regulation about PI (participating interest / rights of participation) oil and gas producing regions, regulation of prices of industrial gas, regulation about the price of gas for power generation, and undepreciated (investment costs are not refundable). It was all of our simulations, "he said.

From the simulation, it would ensure an additional requirement for the result of various factors was that the development ONWJ still economical. On the other hand, as assigned by the Ministry of Energy, it will also calculate the efficiency that occurs after the split of gross scheme is applied and does not have to follow the Code of Labor 007 (PTK 007) of the Special Unit of Upstream Oil and Gas (SKK Migas). "It is our duty, in order to balance that there's anything we asked for, but there is also our job to do the efficiency of the absence of PTK 007," he said.

Need Certainty

Mount added, the PSC scheme's gross split, oil and gas companies who are members of IPA is actually only requires certainty. One was whether the tax rules gross contract this split will apply continue as it is today or will change in the course. "If we are flexible course of any changes. If it turns out simulated changes made uneconomic (oil and gas projects) we submitted appeal for improvement. After all, the principle of government was welcome, "he said.

The government's openness was referring to is seeing the Article 7 of Regulation 8/2017. In this policy is mentioned, when calculating the commercialization of the field does not reach a certain economic value, the contractor received an additional split a maximum of 5%. By contrast, in the calculation of the commercialization of the field exceeds a certain economic value, then the state may take an additional 5% split.

Marjolijn had revealed it hoped the implementation of the scheme does not lower the economic split of gross oil and gas projects will be lower than in the system PSC cost recovery. Because, when even this, oil and gas investments in Indonesia less attractive when compared to other countries in the vicinity.

He asks, for improvements in the future, to do a comprehensive study on the scheme gross PSC split. Particularly, the impact of this scheme on the development of deep-sea oil and gas projects, remote, and require further dewatering tahapi (enhanced oil recovery / EOR). Because the area is what you want targeted Indonesia in the development of oil and gas in the future.

IN INDONESIAN

Kontrak Migas Gross Split

Perusahaan Migas Tunggu Kepastian Aturan Perpajakan

Perusahaan migas masih menunggu kepastian peraturan perpajakan yang digunakan untuk kontrak kerja sama (production sharing contract/PSC) skema bagi hasil kotor (gross split). Kepastian ini diperlukan agar perusahaan dapat menghitung bagi hasil yang sesuai dengan keekonomian proyek.

Direktur Eksekutif Indonesian Petroleum Association (IPA) Marjolijn Wajong mengatakan, setelah diterbitkannya Peraturan Menteri Energi dan Sumber Daya Mineral (ESDM) No 8 Tahun 2017 mengenai kontrak migas skema gross split, seharusnya ada beleid yang mengatur soal perpajakan kontrak skema. Pasalnya, Peraturan Pemerintah No 79 Tahun 2010 hanya mengatur perpajakan untuk PSC cost recovery. “Kami masih menunggu peraturan dari Kementerian Keuangan Semoga dan mungkin akan ada beleid baru,” kata dia di Jakarta, Rabu (22/2).

Sejak diterbitkannya Peratuan Menteri ESDM 8/2016, baru satu blok migas yang kontraknya diteken menggunakan skema gross split, yakni Blok Offshore North West Java (ONWJ) yang dikelola PT Pertamina Hulu Energi. Pembagian bagi hasil pemerintah dibanding kontraktor blok ini diterapkan 32,5:62,5 untuk gas dan 42,5:57,5 untuk minyak. Presiden Direktur PT Pertamina Hulu Energi (PHE) Gunung Sardjono Hadi mengatakan, kontrak gross split Blok ONWJ ini sementara masih mengacu pada undang-undang perpajakan yang berlaku saat ini, sama persis dengan kontrak cost recovery baik jenis maupun besarannya. Bedanya, perpajakan yang dikenakan tidak lagi diganti oleh pemerintah. “Dalam membuat (hitungan) keekonomian, kami menggunakan itu (undang-undang perpajakan yang berlaku) ,” ujarnya. 

Meski demikian, pihaknya juga masih menunggu apakah pemerintah akan mengeluarkan peraturan perpajakan baru untuk PSC gross split ini. Pasalnya, sampai saat ini, beleid yang mengatur kontrak migas jenis ini baru sebatas Peraturan Menteri 8/2016 saja. Pihaknya berharap akan ada beleid lain, apakah Peraturan Pemerintah atau Peraturan Menteri dari kementerian lain, yang melengkapi Peraturan Menteri Gross Split ini. “Kami berharap ada lagi Perturan Pemerintah atau Peraturan Menteri lain untuk menunjang supaya gross split ini berjalan dengan smooth,” jelas Gunung.

Saat ini pun, ahli perpajakan Pertamina Hulu Energi terus melihat kemungkinan-kemungkinan perubahan yang berpengaruh pada keekonomian Blok ONWJ. Apalagi perpajakan bukan satu-satunya faktor yang dapat mengubah keekonomian proyek. Pihaknya menyebut terdapat beberapa peraturan yang diterbitkan Kementerian ESDM yang disinyalir akan menggerus bagi hasil yang ditetapkan dalam kontrak Blok ONWJ. “Kan sekarang sudah ada Peraturan Menteri soal PI (participating interest/ hak partisipasi) daerah penghasil migas, Peraturan Menteri soal harga gas industri, Peraturan Menteri soal harga gas untuk pembangkit listrik, dan undepreciated (biaya investasi yang belum dikembalikan). Itu semua kami simulasi,” paparnya.

Dari simulasi itu, pihaknya akan memastikan kebutuhan tambahan bagi hasil dari berbagai faktor tadi agar pengembangan Blok ONWJ tetap ekonomis. Di sisi lain, sebagaimana ditugaskan oleh Kementerian ESDM, pihaknya juga akan menghitung efisiensi yang terjadi setelah skema gross split diterapkan dan tidak harus mengikuti Pedoman Tata Kerja 007 (PTK 007) dari Satuan Kerja Khusus Pelaksana Kegiatan Usaha Hulu Migas (SKK Migas). “Ini tugas kami, supaya balance bahwa ada sesuatu yang kami minta, tetapi ada juga tugas kami lakukan efisiensi dari tidak adanya PTK 007,” kata dia.

Butuh Kepastian

Gunung menambahkan, dari PSC skema gross split ini, perusahaan migas yang tergabung dalam IPA sebenarnya hanya membutuhkan kepastian. Salah satunya apakah aturan perpajakan kontrak gross split ini akan berlaku terus seperti saat ini atau akan berubah dalam perjalanan. “Kalau kami fleksibel saja setiap ada perubahan. Kalau perubahan itu ternyata disimulasi membuat tidak ekonomis (proyek migas) kami ajukan appeal untuk perbaikan. Toh, prinsipnya pemerintah itu welcome,” kata dia. 

Keterbukaan pemerintah yang dimaksudnya ini melihat adanya Pasal 7 Peraturan Menteri 8/2017. Dalam beleid ini disebutkan, ketika perhitungan komersialisasi lapangan tidak mencapai keekonomian tertentu, kontraktor mendapat tambahan split maksimal 5%. Sebaliknya, dalam perhitungan komersialisasi lapangan melebihi keekonomian tertentu, maka negara boleh mengambil tambahan split 5%.

Marjolijn sempat mengungkapkan, pihaknya berharap penerapan skema gross split tidak menurunkan keekonomian proyek migas menjadi lebih rendah dari yang ada dalam sistem PSC cost recovery. Pasalnya, saat inipun, investasi migas di Indonesia kurang menarik jika dibandingkan negara lain di sekitarnya.

Dia meminta, untuk perbaikan ke depannya, dilakukan kajian komprehensif atas skema PSC gross split. Terutama, dampak skema ini terhadap pengembangan proyek migas laut dalam, terpencil, dan membutuhkan pengurasan tahapi lanjut (enhanced oil recovery/EOR). Pasalnya, wilayah inilah yang ingin disasar Indonesia dalam pengembangan migas ke depannya.

Investor Daily, Page-9, Thursday, Feb, 23, 2018

Oil and Gas Equipment Should Pay Import Duties

     The Ministry of Energy will revise Government Regulation No. 35/2005 to adjust the gross scheme split

Ministry of Energy and Mineral Resources (ESDM) in the near future will revise the Government Regulation (PP) No. 35/2004 on Upstream Oil and Gas. Revisions were made to adjust the rules gross revenue share split in oil and gas. Revision of the rules it seems to be struggling in Chapter IX of the Utilization of Goods, Services, Technology, and Capability Engineering and Design of the Interior.

Deputy Minister of Energy and Mineral Resources, Arcandra Tahar disclose, in PP 35/2004 was mentioned, if the exploration activities successfully and economically declared the goods imported by the Contractor of Cooperation Contract, or PSC included in cost recovery and the goods will be the property of the state.

Conversely, if the exploration activities otherwise uneconomical, imported goods will also become property of the state for cost recovery. Unfortunately, when the goods are handed over to the country still has to pass a complicated process. up to two to three years, "So when the goods are delivered has become scrap because of unused," said Arcandra, Wednesday (22/2).

Worse, PSC also have to spend money during the process of returning the goods to the country. "It is not commercial in the field, the items are returned to the country, need more money to give it back," he said.

According Arcandra, the truth is, if a company's oil and gas exploration and oil and gas field turned out to not achieve the economic, items already purchased by PSC PSC belong. "When buying also obligatory subject to import duties, it was fair,".

During this time imported goods are not subject to import duties PSC. Arcandra stated, goods which belong to the oil companies, not only can be used in one area of ​​work (WK) but also can be used for further activities in the working area. In contrast to the current rule that goods imported for oil and gas activities should not be used for activities in the next WK. "This is what we want to fix. If you have a loss here, he bought the drilling equipment could be used, useful elsewhere. Do not become the property of the state," he said.

He hoped that these changes will be justice for the state and oil companies. Moreover, the changes will not harm the state. "What's the harm for the country? The state is not spending any money, only if it is returned, which got him (PSC), to pay customs duties. Still, the country may import duties, there is no loss," he said.

The application of the goods returned to the state is no longer relevant. Therefore, the profit-sharing scheme KKKS no longer cost recovery or all production costs, including government procurement replaced. The rule changes will make the PSC efficient in spending on goods that gross revenue share split can be enlarged.

Secretary of the Directorate General of Oil and Gas, Susyanto added, the revision of PP 35/2004 is also done so that bureaucracy is no longer complicated oil and gas activities. Because in addition to changing the rules on imported goods, it will also contain provisions concerning gross split and participating interest (PI) 10% for the producing region in the change of PP 35/2004.

Director of the Indonesian Petroleum Association (IPA), Sammy Hamzah said the policy is positive for upstream oil and gas industry because the government is not burdened with useless items. Oil and gas companies do not achieve commercial in an oil and gas field could also use the goods for other purposes or sold, "It's positive. I think there is no problem," he said.

According to him, the current process is very complicated returns. Though the country is also not necessarily benefit from such goods. "If the item is returned to the investor, it eased the process of administration and investors can use for other purposes

IN INDONESIAN

Impor Alat Migas Harus Bayar Bea Masuk

Kementerian ESDM akan merevisi Peraturan Pemerintah No. 35/2005 untuk menyesuaikan skema gross split

Kementerian Energi dan Sumber Daya Mineral (ESDM) dalam waktu dekat akan merevisi Peraturan Pemerintah (PP) No 35/2004 tentang Kegiatan Usaha Hulu Minyak dan Gas Bumi. Revisi dilakukan untuk menyesuaikan aturan gross split dalam bagi hasil migas. Revisi aturan itu nampaknya akan berkutat di BAB IX tentang Pemanfaatan Barang, Jasa, Teknologi, dan Kemampuan Rekayasa dan Rancang Bangun Dalam Negeri.

Wakil Menteri ESDM, Arcandra Tahar membeberkan, dalam PP 35/2004 itu menyebutkan, jika kegiatan eksplorasi berhasil dan dinyatakan ekonomis maka barang yang di impor oleh Kontraktor Kontrak Kerja Sama atau KKKS masuk dalam cost recovery dan barangnya akan menjadi milik negara.

Sebaliknya jika kegiatan eksplorasi dinyatakan tidak ekonomis, barang impor juga akan menjadi milik negara karena cost recovery. Celakanya, ketika barang tersebut diserahkan ke negara masih harus melewati proses rumit. hingga dua sampai tiga tahun, “Sehingga ketika barang diserahkan sudah menjadi rongsokan karena tidak terpakai,” ujar Arcandra, Rabu (22/2). 

Lebih parahnya lagi, KKKS pun harus mengeluarkan uang selama proses pengembalian barang ke negara. "Sudah tidak komersial di lapangan, barang dikembalikan ke negara, butuh uang lagi untuk mengembalikannya," ujarnya.

Menurut Arcandra, yang benar adalah, jika sebuah perusahaan migas melakukan eksplorasi dan ternyata lapangan migas tidak mencapai keekonomian, barang yang sudah dibeli oleh KKKS menjadi milik KKKS. "Saat membeli juga wajib dikenai bea masuk, itu yang adil,".

Selama ini barang impor KKKS tidak kena bea masuk. Arcandra menyatakan, barang yang menjadi milik perusahaan migas itu, tidak saja bisa digunakan di satu wilayah kerja (WK) tapi juga bisa digunakan untuk kegiatan di Wilayah kerja selanjutnya. Berbeda dengan aturan saat ini bahwa barang yang di impor untuk kegiatan migas tidak boleh digunakan untuk kegiatan di WK selanjutnya. "Ini yang mau kami perbaiki. Kalau sudah rugi di sini, dia beli peralatan drilling kan bisa digunakan, bermanfaat di tempat lain. Jangan menjadi milik negara," ujarnya.

Dia berharap, perubahan ini maka akan ada keadilan bagi negara dan perusahaan migas. Terlebih lagi perubahan itu tidak akan merugikan negara. "Apa ruginya buat negara? Negara tidak mengeluarkan uang, hanya kalau ini dikembalikan, yang punya dia (KKKS), bayar bea masuk. Tetap saja negara dapat bea masuk, tidak ada yang rugi," katanya.

Penerapan barang dikembalikan ke negara sudah tidak relevan lagi. Sebab, skema bagi hasil KKKS bukan lagi cost recovery atau semua biaya produksi termasuk pengadaan barang diganti pemerintah. Perubahan aturan akan membuat KKKS efesien dalam belanja barang agar bagi hasil gross split bisa membesar.

Sekretaris Direktorat Jenderal Minyak dan Gas Bumi, Susyanto menambahkan, revisi PP 35/2004 ini juga dilakukan agar birokrasi kegiatan migas tidak lagi rumit. Pasalnya selain mengubah aturan mengenai barang impor, pihaknya juga akan memasukan ketentuan mengenai gross split dan participating interest (PI) 10 % untuk daerah penghasil dalam perubahan PP 35/2004.

Direktur Indonesia Petroleum Association (IPA), Sammy Hamzah mengungkapkan, kebijakan tersebut cukup positif bagi pelaku industri hulu migas karena pemerintah tidak terbebani barang yang tidak ada gunanya. Perusahaan migas yang tidak mencapai komersial dalam suatu lapangan migas juga bisa menggunakan barang untuk keperluan lain atau dijual, "lni positif. Saya rasa tak ada masalah," ujarnya.

Menurutnya, saat ini proses pengembalian barang memang sangat rumit. Padahal negara juga belum tentu mendapatkan manfaat dari barang tersebut. "Kalau proses barang dikembalikan ke investor, itu meringankan proses administrasi dan investor bisa gunakan untuk keperluan lain.

Kontan, Page-14, Thursday, Feb, 23, 2017

Built, New Oil Refinery in South Sumatra

Foreign investment company, PT Palembang GMA Refinery Consortium, plans to build an oil refinery with a capacity of 300,000 barrels per day in the Special Economic Zone Tanjung Api-Api, Banyuasin, South Sumatra. Projects to invest 8.3 billion euros, or around Rp 117 trillion is targeted to begin production in 2022.

General Manager Project Development PT Palembang GMA Refinery Consortium (PGRC) Mastiawan Kusumawardana, Tuesday (21/2) night in the coordination meeting in Palembang, said, PGRC choose Special Economic Zone (SEZ) Tanjung Api-Api as the location for the establishment of the refinery as it is considered a strategic , "This area is close to the Market areas According Mastiawan, future crude oil imported from countries in the Middle East, especially from Iran.

Then, the crude oil is brought to the South Sumatra by ship further processed into various types of fuel oil. "The processed oil from the refinery is not only for export, but also will be distributed to domestic demand, such as petrol, diesel, kerosene to the quality of fuel oil (BBM) clean-standard Euro V," he said.

However, to realize it takes a number of supporting facilities, such as docks were adequate as a lean ship. "We will bring in ships with a capacity of 2 million barrels of which require a depth of about 15-20 meters port. If the depth. less than that, the ship can not dock, "said Mastiawan.

Crude oil supply vessel planned to rely on the Port of Tanjung Carat within 12 kilometers from the refinery. PGRC plan to establish a temporary storage tank within 8 km of the port in a number of countries in the Asia Pacific, "said Mastiawan. Additionally, Mastiawan hope that the process of filling and distribution of the oil to and from ships will not interfere with other shipping activities. Therefore, the process of loading and unloading of ships to a refinery takes about two days. "The ship will dock usually about six days," he said.

He will also ensure the availability of pipelines as the charging infrastructure and the distribution of oil from the ship to refineries and vice versa. Acquisition of land In a meeting between PGRC and South Sumatra Governor Alex Noerdin also presented the need of land for refinery construction area of ​​650 hectares. In addition to the refinery, to be built 30 tanks as well as a container of oil reserves.

For the initial stage, PGRC together consultants from Japan will mangadakan feasibility study will begin in March 2017. The feasibility study will be prepared two years. "For the development and production process takes three years," he said.

Chairman of the Project Management Unit of KEK TAA Regina Aryani said that after this cooperation agreement, the next major focus is the acquisition of land. "The cost of land acquisition is not a problem because all borne by investors," he said. The next focus, is setting up a pipeline in a special lane so it does not interfere with other activities. "We want the pipeline built is not chaotic so the track must be custom made," he said.

Alex Noerdin hopes construction can be worked without a hitch. "We hope the feasibility study process is also accompanied licensing Amdal so development can be done immediately," he said. In addition to a refinery to be built PGRC, in Tanjung Api-Api KEK has built another refinery of PT Dex Indonesia with a capacity of 20,000 barrels per day.

IN INDONESIAN 

Dibangun, Kilang Minyak Baru di Sumsel

Perusahaan penanaman modal asing, PT Palembang GMA Refinery Consortium, berencana membangun kilang minyak berkapasitas 300.000 barel per hari di Kawasan Ekonomi Khusus Tanjung Api-Api, Kabupaten Banyuasin, Sumatera Selatan. Proyek berinvestasi 8,3 miliar euro atau sekitar Rp 117 triliun ini ditargetkan mulai berproduksi pada tahun 2022. 

General Manager Pengembangan Proyek PT Palembang GMA Refinery Consortium (PGRC) Mastiawan Kusumawardana, Selasa (21/2) malam dalam rapat koordinasi di Palembang, mengatakan, PGRC memilih Kawasan Ekonomi Khusus (KEK) Tanjung Api-Api sebagai lokasi pendirian kilang minyak karena dinilai strategis. ”Kawasan ini dekat dengan Wilayah pemasaran Menurut Mastiawan, nantinya minyak mentah didatangkan dari negara-negara di kawasan Timur Tengah khususnya dari Iran. 

Kemudian, minyak mentah tersebut dibawa ke Sumatera Selatan dengan kapal yang selanjutnya diolah menjadi bahan bakar minyak berbagai jenis. ”Hasil olahan minyak dari kilang ini tidak hanya untuk diekspor, tetapi juga akan disalurkan untuk kebutuhan domestik seperti bensin, solar, minyak tanah dengan kualitas bahan bakar minyak (BBM) bersih berstandar Euro V,” ujarnya.

Meski demikian, untuk mewujudkan hal itu dibutuhkan sejumlah fasilitas pendukung, seperti dermaga yang memadai sebagai tempat bersandar kapal. ”Kami akan mendatangkan kapal berkapasitas 2 juta barel yang membutuhkan kedalaman pelabuhan sekitar 15-20 meter. Apabila kedalamannya. kurang dari itu, kapal tidak bisa sandar,” ujar Mastiawan.

Kapal pemasok minyak mentah direncanakan bersandar di Pelabuhan Tanjung Carat yang berjarak 12 kilometer dari kilang. PGRC pun berencana membangun tangki penampungan sementara yang berjarak 8 km dari pelabuhan di sejumlah negara di Asia Pasifik,” ujar Mastiawan. Selain itu, Mastiawan berharap proses pengisian dan penyaluran minyak dari dan ke kapal tidak akan mengganggu aktivitas pelayaran lain. Sebab, proses bongkar muat dari kapal ke kilang membutuhkan waktu sekitar dua hari. ”Kapal biasanya akan berlabuh sekitar enam hari sekali,” ujarnya.

Dia juga akan memastikan ketersediaan jaringan pipa sebagai infrastruktur pengisian dan penyaluran minyak dari kapal ke kilang begitu pula sebaliknya. Pembebasan lahan Dalam pertemuan antara PGRC dan Gubernur Sumatera Selatan Alex Noerdin juga dipaparkan kebutuhan lahan untuk pembangunan kilang seluas 650 hektar. Selain kilang, juga akan dibangun 30 tangki sebagai penampung cadangan minyak. 

Untuk tahap awal, PGRC bersama konsultan dari Jepang akan mangadakan studi kelayakan yang akan dimulai pada Maret 2017. Studi kelayakan akan disusun dua tahun. ”Untuk proses pembangunan hingga produksi dibutuhkan waktu tiga tahun,” ujarnya.

Ketua Project Management Unit KEK TAA Regina Aryani mengatakan, setelah kerja sama ini disepakati, fokus utama selanjutnya adalah pembebasan lahan. ”Biaya pembebasan lahan tidak jadi masalah karena semua ditanggung investor,” ujarnya. Fokus selanjutnya, adalah menyiapkan jalur pipa dalam satu jalur khusus sehingga tidak mengganggu aktivitas lainnya. ”Kami ingin agar pipa yang dibangun tidak semrawut sehingga jalurnya harus dibuat khusus,” ujarnya.

Alex Noerdin berharap pembangunan dapat dikerjakan tanpa hambatan. ”Kami berharap proses studi kelayakan juga dibarengi perizinan Amdal sehingga pembangunan dapat segera dilakukan,” ujarnya. Selain kilang minyak yang akan dibangun PGRC, di KEK Tanjung Api-Api telah dibangun kilang minyak lain dari PT Dex Indonesia dengan kapasitas 20.000 barel per hari.

Kompas, Page-20, Thursday, Feb, 23, 2017

PGRC Ready to Work on Tanjung Api-Api

Some foreign investors are getting interested in investing Tanjung Api-Api region with plans to build an oil refinery worth 8.4 euros, equivalent to Rp. 118 Trillion. The investors are PT Palembang GMA Refinery Consortium (PGRC), which is a consortium of investment firms across the country, including Brisbane Investment (Australia), PT Management Asia General (GMA), PT Toman Pare, Anglo Energy Refining Group (UK) and PT BCL Zawar Indonesia.

Managing Director Andrey PGRC Stroev said it will build an oil refinery (re fi nery) with a production capacity of up to 300,000 barrels per day (bpd). "It is estimated that the construction will be completed within 3 years starting from the engineering, procurement, and construction (EPC) to commercial production," he said during an audience with the Governor of South Sumatra, on Tuesday (21/2)

According to him, the products that will be produced from the refinery in the form of gasoline, diesel, kerosene, with the quality of fuel oil (BBM) clean standard Euro V. Andrey added PGRC also plans to build an international fuel storage facility with a capacity of 10 million barrels in location same.

He went on permit issues have also been resolved from the investment license, permit management to permit temporary location. "In the near future our team will come in and do a feasibility study on the location of the Special Economic Zone Tanjung Api-Api [SEZ]. Ministry of Energy and Mineral Resources has indeed been aiming KEK Tanjung Api-Api as one of the locations of BPH in the Special Economic Zone Tanjung Api-Api refinery construction since last year.

FULLY SUPPORTS

Meanwhile South Sumatra Governor Alex Noerdin said the provincial government will fully support the construction of the refinery. "We fully support this development, whatever it takes we'll package, such as land we have prepared the required location as needed," he said.

For information, PGRC was established in 2016 to address the challenge of meeting the needs of fuel in Indonesia, especially fuel continues to increase along with the increasing number of population in Indonesia.

Indonesia aims to build refineries do not need to import fuel from abroad to become energy independent country without having to rely on other countries. In addition, the company was established to develop international oil refineries and storage for strategic oil reserves. PT PGRC addition, there are other private companies that expressed interest to build private refineries in Indonesia, namely Kilanindo Golden Star, plans to build a refinery in Situbondo, East Java.

Kilanindo itself a consortium and a company owned by Suharto family, namely Bambang Trihatmodjo, PT Golden Energy Kreasindo. The company teamed up with PT Indonesia Situbondo Re fi nery who own land and oil companies from Iran, the National Iranian Oil Refining & Distribution Company who will supply oil. Of the two companies, the new PT PGRC that already incorporate the completeness of the data to the Ministry of Energy to take care associated with licensing.

On the Regulation of Minister No. 35/2016 on the Development of Private Refinery, which entered into force 11 November 2016, the government allowed private refineries to import raw materials for the oil needs. Meanwhile, the results of the refinery's products mainly for domestic needs.

IN INDONESIAN 

PGRC Siap Garap Tanjung Api-Api  

Sejumlah investor asing mulai tertarik menanamkan modal dikawasan Tanjung Api-Api dengan berencana membangun kilang minyak senilai 8,4 euro atau setara Rp. 118 Triliun. Adapun investor yang dimaksud adalah PT Palembang GMA Refinery Consortium (PGRC), yang merupakan konsorsium sejumlah perusahaan investasi lintas negara, diantaranya Brisbane Penanaman Modal (Australia), PT Manajemen Asia Umum (GMA), PT Toman Pare, Anglo Energi Refining Group (Inggris), dan PT BCL Zawar Indonesia.

Direktur Utama PGRC Andrey Stroev mengatakan, pihaknya akan membangun kilang minyak (refinery) dengan kapasitas produksi hingga 300.000 barel per hari (bph). “Diperkirakan pembangunan akan selesai dalam waktu 3 tahun mulai dari proses rekayasa, pengadaan, dan konstruksi (EPC) hingga produksi komersial,” katanya saat audiensi dengan Gubernur Sumsel, Selasa (21/2) 

Menurutnya, produk yang akan dihasilkan dari kilang ini berupa Bensin, Solar, minyak tanah, dengan kualitas bahan bakar minyak (BBM) bersih berstandar Euro V.  Andrey menambahkan PGRC juga berencana untuk membangun sebuah fasilitas penyimpanan BBM internasional dengan kapasitas 10 juta barel di lokasi yang sama.

Dia melanjutkan persoalan perizinan juga sudah diselesaikan mulai dari izin investasi, izin pengelolaan sementara hingga izin lokasi. “Dalam waktu dekat tim kami akan datang dan lakukan studi kelayakan di lokasi Kawasan Ekonomi Khusus Tanjung Api-Api [KEK]. Kementerian Energi dan Sumber Daya Mineral memang telah membidik KEK Tanjung Api-Api sebagai salah satu lokasi BPH di Kawasan Ekonomi Khusus Tanjung Api-Api pembangunan kilang minyak sejak tahun lalu.

DUKUNG PENUH

Sementara itu Gubenur Sumatera Selatan Alex Noerdin mengatakan Pemerintah Provinsi akan mendukung penuh pembangunan kilang tersebut. “Kami dukung penuh pembangunan ini, apa saja yang diperlukan akan kami siapkan, seperti lahan sudah kami siapkan lokasinya sesuai kebutuhan yang diperlukan," katanya.

Sebagai informasi, PGRC didirikan pada 2016 untuk menjawab tantangan mengenai pemenuhan kebutuhan bahan bakar di Indonesia, terutama BBM yang terus meningkat seiring dengan terus bertambahnya jumlah penduduk di Indonesia. 

Pembangunan kilang bertujuan agar Indonesia tidak perlu mengimpor BBM dari luar negeri sehingga menjadi negara yang mandiri energi tanpa harus bergantung pada negara lain. Selain itu, perusahaan ini didirikan untuk mengembangkan kilang minyak dan penyimpanan internasional untuk cadangan minyak strategis. Selain PT PGRC, ada perusahaan swasta lain yang menyatakan minatnya untuk membangun kilang swasta di Indonesia yakni Kilanindo Golden Star, berencana membangun kilang di Situbondo, Jawa Timur.

Kilanindo sendiri merupakan konsorsium dan perusahaan milik Keluarga Cendana, yakni Bambang Trihatmodjo, yakni PT Kreasindo Golden Energi. Perusahaan ini berkongsi dengan PT Situbondo Refinery Indonesia yang memiliki lahan dan perusahaan minyak asal Iran, National Iranian Oil Refining & Distribution Company yang akan memasok minyak. Dari kedua perusahaan ini, baru PT PGRC yang sudah memasukkan kelengkapan data ke Kementerian ESDM untuk mengurus terkait dengan perizinan.

Pada Peraturan Menteri ESDM No. 35/2016 tentang Pembangunan Kilang Swasta, yang mulai berlaku 11 November 2016, pemerintah mengizinkan kilang swasta mengimpor bahan baku minyak untuk kebutuhannya. Sementara itu, hasil produk kilangnya diutamakan untuk kebutuhan dalam negeri. 

Bisnis Indonesia, Page-8, Thursday, Feb, 23, 2017

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