Honggo Escape from Singapore

Suspected corruption allegations and money laundering of condensate sales part of the country, former President Director of PT Trans Pacific Petrochemical Indotama (TPPI) Honggo Wendratno (HW), disappeared. Honggo last did not attend Polri's call for treatment to Singapore.

Head of Public Information Division Public Relations Division Headquarters Police Republic of Indonesia Kombes Pol Martinus Sitompul confirmed Police will spread photos Honggo Wendratno. Because Honggo has often not received from the police call and last he was absent because of the reason for treatment of Singapore

"Red Notice has been around since 2017. Later the DPO will we spread from Monday (22/1)," said Martinus at Poiri Headquarters, II Trunojoyo, South Jakarta, Friday (19/1).

In addition, the reason the Police Republic of Indonesia spread photos Honggo, because until now the existence of Honggo is not known after treatment at one hospital in Singapore.

Honggo Wendratno

"Suspect HW until now has not been known of its existence. Information in Singapore has been searched by SLO (Senior Liaison Officer) Police in Singapore Kombes Joko who then came to the alleged address there in one place in Singapore, "said Pol Kombes Martinus.

"Yes it could be (Honggo went to another country)," added Martinus.

The summons to Honggo was not only sent to his home in Pakubuwono, South Jakarta. Rather it also sends the Letter to Singapore where Honggo was treated. However, it does not get perfect or satisfactory results.

"At the time of our SLO there went to the location which allegedly is a residence and company TPPI. It turns out to the one there stating that the suspect HW was not there. And, that address is not a PT from TPPI in that location, "said Kombes Pol Martinus.

Submit Red Notice

"Therefore, we make a report, of course, this will be a consideration for investigators to make efforts other steps. Among them are making an application to issue a red notice. Thus it will be assisted by the police in all over Indonesia and around the world, "continued Martinus.

According to Police Commissioner Martinus, the summoning letter given to the Honggo family did not get any results. Because it did not get information about the existence of Honggo from the family and his lawyer.

"The information I can not find out. But of course, the information he said did not know what we received. But of course, we will do more profound efforts, "he said.

As is known, condensate sales corruption cases involving PT TPPI and SKK Migas had been abandoned by the Criminal Investigation Agency (Bareskrim Mabes Polri) more than two years. In fact, case files that have been prepared investigators Directorate of Economic and Special Crime (Dittipideksus) Bareskrim has four times delegated.

Since May 2015, investigators have established three people as suspects in condensate cases. They are the Head of BP Migas (SKK Migas) Raden Priyono and former BP Migas Finance Deputy Djoko Harsono and Honggo Wendratno. However, the only detained investigators are Raden Priyono and Djoko Harsono.

Cancel File Submission

Earlier this month, the investigator of the Special Crime Investigation Directorate of Criminal Investigation Police canceled the suspect file and the evidence of the alleged case to the Attorney General's Office. At that time two suspects were present, namely Raden Priyono-and Djoko Harsono. Both left Bareskrim Police, Building CTF Jalan Merdeka Timur, Central Jakarta, Monday (8/1/2018) around at 14.00 hrs.

"There is no second stage delegation, meaning we are today told to go back, that alone can not, that's all," said attorney Raden Priyono, Supriyadi Adi, in the CTF building, Bareskrim Police.

Honggo has not been arrested in this case, because of health care after heart surgery in Singapore. However, Singapore through the Facebook account of the Singapore Embassy for Indonesia denied the existence of Honggo in Singapore.

"Honggo Wendratno is not in Singapore. We have conveyed this to the Indonesian authorities on previous occasions. Singapore has given full assistance to Indonesia in this case in accordance with our laws and international obligations, "the official statement of the Foreign Ministry of Singapore, as quoted from Singapore Embassy's Facebook account for Indonesia, Saturday (13/1) night.

The unlawful acts committed by the suspects are the Corruption Criminal of Condensate Processing of State Section. They are considered unlawful because the processing is without a cooperation contract, taking and processing and selling condensate parts of the state that harm the state finances.

As already audited by the State Audit Board of the Republic of Indonesia, the amount of state losses reaches USD 2.717.894.359,49 or Rp 38 billion.

Honggo and Bank Century Case

Besides being involved in condensate corruption, Honggo Wendratmo is also involved in Century Bank case. As is known the case of bailout Rp 67 Trillion to PT Bank Century (now Bank Mutiara) still not finished. Honggo Wendratno is one of the people who until now has not been included in the list of parties investigated by the legal apparatus.

One of the things that survived the verification and inspection of law enforcement officials was the chronology of the story behind the fictitious Letter of Credit (L/C) issued by PT Salalang Prima. In this case, only former politicians of Prosperous Justice Party (PKS), Muhammad Misbakhun and Director Salalang Prima successfully arrested by the police.

While the chronology behind the story of L/C publishing has not been matched perfectly. Quoted Ambassador from bonihargens.com, Friday (19/1), one party who escaped from the drama Century Bank is Honggo Wendratno.

Honggo joined the Tirtamas Group. His dream of building a petrochemical business is a mess because of the monetary crisis of 1998. Later Honggo is trapped in the "Big Scandal Bank Century" but no one has traced the facts Honggo Wendratno is the owner of petrochemical companies such as PT Polytama Propindo, PT Petro-Oxo Nusantara and PT Trans Pacific Petrochemical Indonesia Indotama (TPPI).

Until 2003, Honggo was the owner and CEO of Polytama Propindo, the largest polypropylene producer, in addition, to Try Polita Indonesia. He owns a 24% stake in PT Salakencana Tirta Lestari. He also controls 30% at TPPI, the company whose CEO is Amir Sembodo, the special staff of the Coordinating Minister for the Economy, Hatta Rajasa.

The majority shareholder of TPPI is PT Perusahaan Pengelola Asset (PPA), which is 70%. The Honggo family also controls PT Polymer Spectrum Sentosa, a distributor of chemical products. The company involves Honggo Wendratno in Century Bank scandal because he provides the personal guarantee for L/C default by Century Bank of USD 18 million.

The facility was initially secured by US $ 18 million SLBC by Standard Charter Bank, a Singapore branch placed by facility receiving bankers issued by Deutch Bank AG, Singapore and the personal guarantee from Honggo.

According to the BPK audit report, PT Polymer uses the L/C facility to fund trading activities with Industrial Products Trading Pte Ltd. Polymer reportedly failed to pay when its loan facility matured in 2009.

What Are The L/C Facility Incorrect?

According to BPK audit, Century Bank provides facilities without proper due diligence and special agreements given by Robert Tantular and CEO Hermanus Hasan Muslim. Honggo is a partner of R Budi Hartono (owner of Djarum Group and PT Bank Central Asia Tbk), Anton Sulaeman (energy businessman), Aswar Sjafry, Edy Indrawan and Timoty E. Marnadus at Bank Haga before they bought 95% of Bank Haga shares from Rabobank.

So what is the position of PT Salalang Prima involved in the case of default? The initial report found this company as a supplier for PT TPPI. PT Salalang Prima is controlled by M Misbakhun, a Prosperous Justice Party politician, who is close to the Democratic National Party, and now moves to the Golkar Party.

Police have also arrested the Director of PT Salalang Frenky Ongkowarjojo as indicated to be involved in the case of the fictitious L/C. Unfortunately, the police investigation only reached Salalang Prima, without looking further how the chronology behind the fictitious L/C publishing was.

The role of Honggo Wendratmo, which is now untouchable, should be a target of law enforcement investigations (BHC Research Team).

IN INDONESIA

Honggo Kabur dari Singapura

Tersangka dugaan korupsi dan pencucian uang penjualan kondensat bagian negara, mantan Dirut PT Trans Pacific Petrochemical Indotama (TPPI) Honggo Wendratno (HW), menghilang. Honggo terakhir kali tidak menghadiri panggilan Polri alasan berobat ke Singapura.

    Kepala Bagian Penerangan Umum Divisi Hubungan Masyarakat Markas Besar Polisi Republik Indonesia Kombes Pol Martinus Sitompul menegaskan Kepolisian akan menyebarkan foto Honggo Wendratno. Karena Honggo sudah sering tidak hadri dari panggilan polisi dan terakhir dirinya mangkir karena alasan berobat ke Singapura

“Red Notice sudah ada sejak 2017. Nanti DPO itu mau kita sebar mulai hari Senin (22/1),” kata Martinus di Mabes Poiri, II Trunojoyo, Jakarta Selatan, Jumat (19/1).

Selain itu, alasan Polisi Republik Indonesia menyebar foto Honggo, karena sampai saat ini keberadaan Honggo tidak diketahui setelah melakukan pengobatan di salah satu rumah sakit di Singapura.

“Tersangka HW sampai saat ini belum diketahui keberadaannya. Informasi soal di Singapura itu sudah di telusuri oleh SLO (Senior Liaison Officer) Polri yang ada di Singapura Kombes Joko yang kemudian mendatangi alamat yang diduga ada di satu tempat di Singapura,” ujar Kombes Pol Martinus. 

“Ya bisa jadi (Honggo pergi ke negara lain),” tambah Martinus. 

Surat pemanggilan terhadap Honggo bukan hanya dikirim ke rumahnya yang ada di sekitaran Pakubuwono, Jakarta Selatan. Melainkan juga mengirimkan Surat itu ke Singapura tempat Honggo dirawat. Namun, hal itu tak memdapatkan hasil yang sempurna atau memuaskan.

“Pada saat SLO kita di sana mendatangi lokasi yang diduga adalah tempat tinggal dan perusahaan TPPI. Ternyata oleh yang ada di sana menyatakan bahwa tersangka HW tidak ada di sana. Dan, alamat itu bukan merupakan PT dari TPPI di lokasi tersebut,” kata Kombes Pol Martinus.

Ajukan Red Notice

“Oleh karena itu, kita membuat laporan, tentu ini akan menjadi pertimbangan bagi penyidik untuk melakukan upaya-upaya langkah lain. Di antaranya melakukan permohonan untuk menerbitkan red notice. Dengan demikian akan dibantu oleh kepolisian yang ada di seluruh Indonesia dan seluruh dunia,” sambung Martinus.

Menurut Komisaris Besar Polisi Martinus mengatakan surat pemanggilan yang diberikan kepada pihak keluarga Honggo itu tidak mendapatkan hasil. Karena memang pihaknya tidak mendapatkan informasi tentang keberadaan Honggo dari pihak keluarga maupun lawyer-nya.

“Informasi yang saya dapat katanya tidak mengetahui. Tapi tentu informasi dia mengatakan tidak mengetahui yang kita terima. Tapi tentu akan kita lakukan upaya-upaya yang lebih mendalam,” katanya.

Seperti diketahui, kasus korupsi penjualan kondensat yang melibatkan PT TPPI dan SKK Migas sempat terbengkalai di Badan Reserse Kriminal (Bareskrim Mabes Polri) lebih dari dua tahun. Padahal, berkas perkara yang telah disusun penyidik Direktorat Tindak Pidana Ekonomi dan Khusus (Dittipideksus) Bareskrim telah empat kali dilimpahkan.

Sejak Mei 2015, penyidik sudah menetapkan tiga orang sebagai tersangka dalam kasus kondensat. Mereka adalah Kepala BP Migas (SKK Migas) Raden Priyono dan mantan Deputi Finansial BP Migas Djoko Harsono, dan Honggo Wendratno. Namun, yang hanya ditahan penyidik hanya Raden Priyono dan Djoko Harsono.

Batal Pelimpahan Berkas

Pada awal bulan ini, penyidik Direktorat Tindak Pidana Ekonomi Khusus Bareskrim Polri batal melimpahkan berkas tersangka dan barang bukti kasus dugaan tersebut ke Kejaksaan Agung. Saat itu dua tersangka sudah hadir, yakni Raden Priyono-dan Djoko Harsono. Keduanya meninggalkan Bareskrim Polri, Gedung KKP Jalan Merdeka Timur, Jakarta Pusat, Senin (8/1/2018) sekitar pukul 14.00 WIB.

“Tidak ada pelimpahan tahap kedua, artinya kami hari ini disuruh kembali, itu saja belum bisa, itu saja," kata kuasa hukum Raden Priyono, Supriyadi Adi, di gedung KKP, Bareskrim Polri.

Honggo memang belum ditahan dalam kasus ini, karena menjalani perawatan kesehatan pasca operasi jantung di Singapura. Akan tetapi, Singapura melalui akun Facebook Kedutaan Besar Singapura untuk Indonesia membantah keberadaan Honggo di Singapura.

“Honggo Wendratno tidak ada di Singapura. Kami telah menyampaikan hal ini kepada pihak berwenang Indonesia pada kesempatan sebelumnya. Singapura telah memberikan bantuan penuh kepada Indonesia dalam kasus ini sesuai dengan undang-undang kami dan kewajiban intemasional" demikian pernyataan resmi Kementerial Luar Negeri Singapura, seperti dikutip dari akun Facebook Kedutaan Besar Singapura untuk Indonesia, Sabtu (13/1) malam.

Perbuatan melawan hukum yang dilakukan oleh para tersangka adalah Tindak Pidana Korupsi Pengolahan Kondensat Bagian Negara. Mereka dinilai melawan hukum karena pengolahan itu tanpa dilengkapi kontrak kerja sama, mengambil dan mengolah serta menjual kondensat bagian negara yang merugikan keuangan negara.

Sebagaimana telah dilakukan audit oleh Badan Pemeriksa Keuangan Republik lndonesia, sebesar kerugian negara mencapai USD 2-717-894.359,49 atau Rp 38 miliar.

Honggo dan Kasus Bank Century

Selain terlibat korupsi kondensat, Honggo Wendratmo juga terlibat kasus Bank Century. Seperti diketahui kasus bail out Rp 67 Triliun ke PT Bank Century (sekarang menjadi Bank Mutiara) masih belum selesai. Honggo Wendratno adalah salah satu orang yang hingga kini namanya belum masuk dalam daftar pihak yang diselidiki pihak aparat hukum. 

Salah satu hal yang selamat dari verifikasi dan pemeriksaan aparat penegak hukmn adalah kronologi cerita di balik penerbitan Letter of Credit (L/C) fiktif oleh PT Salalang Prima. Dalam kasus ini hanya mantan politisi Partai Keadilan Sejahtera (PKS), Muhammad Misbakhun dan Direktur Salalang Prima yang berhasil ditangkap kepolisan. 

Sementara kronologis dibalik cerita penerbitan L/C tiktif belum tertangkap secara sempurna. Dikutip Duta dari bonihargens.com, Jumat (19/1), salah satu pihak yang lolos dari drama Bank Century adalah Honggo Wendratno.

Honggo bergabung dalam Group Tirtamas. Mimpinya membangun bisnis Petrokimia berantakan karena krisis Moneter 1998. Belakangan Honggo terjebak dalam "Big Scandal Bank Century" namun tidak ada pihak yang menelusuri fakta Honggo Wendratno merupakan pemilik perusahaan petrokimia seperti PT Polytama Propindo, PT Petro-Oxo Nusantara dan PT Trans Pacific Petrochemical Indonesia Indotama (TPPI).

Sampai 2003, Honggo merupakan pemilik sekaligus CEO Polytama Propindo, produsen polypropaline terbesar, selain Try Polita Indonesia. Ia memiliki 24% saham di PT Salakencana Tirta Lestari. Ia juga mengontrol 30% di TPPI, perusahan yang CEO-nya Amir Sembodo, staf khusus Menteri Koordinator Perekonomian, Hatta Rajasa.

Pemegang saham mayoritas TPPI adalah PT Perusahaan Pengelola Aset (PPA), yakni 70%. Keluarga Honggo juga mengontrol PT Polymer Spectrum Sentosa, distributor produk-produk kimia. Perusahaan ini melibatkan Honggo Wendratno dalam skandal Bank Century karena ia menyediakan personal jaminan untuk L/C yang default oleh Bank Century sebesar USD 18 juta. 

Fasilitas ini awalnya dijamin dengan US$ 18 juta SLBC oleh Standar Charter Bank, cabang Singapura yang ditempatkan oleh bankir-bankir penerima fasilitas yang diterbitkan oleh Deutch Bank AG, Singapura dan personal guarantee dari Honggo.

Menurut laporan hasil audit BPK, PT Polymer menggunkan fasilitas L/C untuk mendanai aktivitas perdagangan dengan Industrial Products Trading Pte Ltd. Polymer dilaporkan gagal bayar ketika fasilitas pinjamannya jatuh tempo tahun 2009.

Apa Salah Fasilitas L/C?

Menurut audit BPK, Bank Century menyediakan fasilitas tanpa melakukan due dilligence yang pantas dan melakukan perjanjian spesial yang diberikan oleh Robert Tantular dan CEO Hermanus Hasan Muslim. Honggo adalah partner R Budi Hartono (pemilik Djarum Group dan PT Bank Central Asia Tbk), Anton Sulaeman (pebisnis di sektor energi ), Aswar Sjafry, Edy Indrawan dan Timoty E. Marnadus di Bank Haga sebelum mereka membeli 95% saham Bank Haga dari Rabobank.

Lantas bagaimana posisi PT Salalang Prima yang terlibat dalam kasus gagal bayar? Laporan awal menemukan perusahaan ini sebagai supplier bagi PT TPPI. PT Salalang Prima dikontrol M Misbakhun, politisi Partai Keadilan Sejahtera, merapat ke Partai Nasional Demokrat, dan sekarang pindah ke Partai Golkar.

Kepolisian juga telah menangkap Direktur PT Salalang Frenky Ongkowarjojo karena terindikasi terlibat dalam kasus L/C fiktif itu. Sayangnya, penyelidikan polisi hanya sampai pada Salalang Prima, tanpa melihat lebih jauh bagaimana kronologis di balik penerbitan L/C fiktif itu. 

Peran Honggo Wendratno yang kini belum tersentuh, seharusnya menjadi salah target penyelidikan aparat penegak hukum (Tim Riset BHC).

Duta Masyarakat, Page-1, Saturday, Jan 20, 2018

Condensate Corruption Suspect Signs DPO

Indonesian Police will name suspect condensate mega-corruption, Honggo Wendratno, in the list of people search (DPO) starting Monday (22 Jan). Polri has coordinated with Interpol to trace the existence of Honggo. In fact, Interpol has also issued a red notice on the Honggo name since 2017.

Honggo Wendratno

"We will deploy the DPO starting on Monday (January 22)," said Chief of Police General Information Commissioner Martinus Sitompul at National Police Headquarters, Jakarta, Friday (19/1).

Martinus said until now the existence of Honggo is not yet known. Finally, Honggo is known to be in Singapore. However, when sought in Singapore, the Police failed to find him. In the absence of Honggo in the second phase of the process of delivering evidence and suspects to the Attorney General, the police consider the process in absentia.

This process is compulsory when a recurring call does not get a response from a suspect. So far, this police only get two suspects namely Joko Harsono and Raden Priyono.

"However, the public prosecutor as a researcher on this case wants to know the steps taken by the police as they are.Well we tell our friends that the steps are done already Monday we are deploying the DPO," said Martinus.

Martinus added that his side is still optimistic to find Honggo. The existence of Honggo, Marijnus said can be traced from the digital traces he left behind. Moreover, Indonesian Police has a network to track the whereabouts of the suspect.

"Of course the existence of the concerned is now easier to know because it can leave a trace of a digital footprint when using electronics. Mobile, for example, "he said.

According to Martinus, the police have also met the family for questioning. However, the investigator tried not to link the criminal case with the family since the unlawful acts allegedly committed by Honggo are in his capacity as the president director of PT Trans Pacific Petrochemical Indotama (TPPI). That way, unrelated families certainly will not be done examination efforts.

"Unless there are allegations that there are attempts by the family to hide the suspect Honggo Wendratno will certainly be inside from his family," he said.

So far the family claimed not to know the existence of Honggo, although the police will continue to explore the family. Attorney General HM Prasetyo said the Attorney General's Office has not yet received a two-stage condensate corruption case. Therefore, the police are still difficult to hunt Honggo.

HM Prasetyo asked the police to coordinate with overseas networks, such as Interpol to immediately track Honggo.

"It is still the responsibility of the investigator (police) to be handed over to the public prosecutor," said Prasetyo at the Attorney General's Office in Jakarta on Friday (Jan 19).

The Attorney General's Office has declared that the case file for the condensate corruption case is complete. However, stage two or delivery of evidence and suspects has not been done because Honggo has not been found.

"Suspects and evidence of corruption should be submitted to the prosecutor's office should all be submitted together," said Prasetyo.

Since May 2015, investigators have established three people as suspects in condensate cases. They are Raden Priyono, Djoko Harsono, and Honggo Wendratno. Raden Priyono and Djoko Harsono are well known. Meanwhile, Honggo Wendratno has not been arrested, the last time is known to undergo post-operative heart healthcare in Singapore.

However, Singapore through the Facebook account of the Singapore Embassy for Indonesia denied the existence of Honggo in Singapore.

"Honggo Wendratno does not exist in Singapore We have conveyed this to the Indonesian authorities on previous occasions Singapore has given full assistance to Indonesia in this case in accordance with our laws and international obligations," the official Foreign Ministry said in Singapore quoted from the Facebook account of the Singapore Embassy for Indonesia uploaded on Saturday, January 13, 2018.

Unlawful acts committed by suspects are corruption cases of condensate processing of parts of the country. They are judged to be unlawful because the processing is without a cooperative contract, collects and processes and sells Condensate parts of the country that harm the state finances. As audited by the State Audit Board of the Republic of Indonesia, the state losses reached 2.71 billion US dollars or Rp 35 trillion.

IN INDONESIA

Tersangka Korupsi  Kondensat Masuk DPO

Polisi Republik Indonesia akan memasukkan nama tersangka kasus megakorupsi Kondensat, Honggo Wendratno, dalam daftar pencarian orang (DPO) mulai Senin (22 Jan). Polri sudah berkoordinasi dengan Interpol untuk menelusuri keberadaan Honggo. Bahkan, Interpol juga sudah menerbitkan red notice pada nama Honggo sejak 2017 lalu.

"Nanti DPO itu mau kita sebar mulai hari Senin (22 Jan)," kata Kepala Bagian Penerangan Umum Polri Komisaris Besar Polisi Martinus Sitompul di Markas Besar Polri, Jakarta, Jumat (19/1).

Martinus menuturkan sampai saat ini keberadaan Honggo belum diketahui. Terakhir, Honggo diketahui berada di Singapura. Namun, ketika dicari di Singapura, Polisi tidak berhasil menemukannya. Karena tidak adanya Honggo dalam proses tahap dua yaitu penyerahan bukti dan tersangka ke Kejaksaan Agung, kepolisian mempertimbangkan proses secara in absentia. 

Proses ini terpaksa dapat dilakukan bila pemanggilan berulang tidak mendapatkan respons dari tersangka. Sejauh, ini kepolisian hanya mendapatkan dua tersangka yakni Joko Harsono dan Raden Priyono.

"Tapi, jaksa penuntut umum sebagai peneliti terhadap kasus ini ingin mengetahui langkah-langkah yang dilakukan oleh kepolisian seperti apa. Nah, ini kita sampaikan kepada teman-teman bahwa langkah-langkah yang dilakukan sudah. Nanti Senin kita sebar DPO-nya," ujar Martinus.

Martinus menambahkan, pihaknya masih optimistis dapat menemukan Honggo. Keberadaan Honggo, kata Marijnus dapat dilacak mulai dari jejak digital yang ditinggalkannya. Terlebih Polri memiliki jaringan untuk melacak keberadaan tersangka. 

“Tentu keberadaan yang bersangkutan sekarang lebih gampang untuk diketahui karena bisa meninggalkan jejak jejak digital bila menggunakan elektronik. Handphone, misalnya," kata dia.

Menurut Martinus, kepolisian juga sudah menemui pihak keluarga untuk dimintai keterangan. Namun penyidik berusaha tidak mengaitkan kasus pidana dengan keluarga mengingat perbuatan melawan hukum yang diduga dilakukan oleh Honggo ini adalah dalam kapasitasnya sebagai direktur utama PT Trans Pasific Petrochemical Indotama (TPPI). Dengan begitu, keluarga yang tidak terkait tentu tidak akan dilakukan upaya-upaya pemeriksaan.

"Kecuali ada dugaan bahwa ada upaya-upaya dari keluarga untuk menyembunyikan tersangka Honggo Wendratno tentu akan didalam dari keluarganya," kata dia. 

Sejauh ini pihak keluarga mengaku tidak mengetahui keberadaan Honggo, meski polisi tetap akan terus mendalami dari pihak keluarga. Jaksa Agung HM Prasetyo mengatakan, Kejaksaan Agung hingga saat ini belum menerima tahap dua kasus korupsi kondensat. Sebab, polisi masih kesulitan memburu Honggo. 

HM Prasetyo meminta kepolisian untuk berkoordinasi dengan jaringan di luar negeri, seperti Interpol untuk segera melacak Honggo.

"Itu masih jadi tanggung jawab penyidik (kepolisian) untuk diserahkan kepada jaksa penuntut umum. Intinya saya harapkan penyidik menyerahkan semuanya bersamaan," ujar Prasetyo di Kejaksaan Agung, Jakarta, Jumat (19 Jan).

Kejaksaan Agung telah menyatakan berkas perkara kasus korupsi kondensat tersebut telah lengkap. Namun, tahap dua atau penyerahan barang bukti dan tersangka belum dilakukan karena Honggo belum ditemukan. 

"Tersangka dan barang bukti korupsi harus diserahkan kejaksaan semuanya harus diserahkan bersama," kata Prasetyo.

Sejak Mei 2015, penyidik sudah menetapkan tiga orang sebagai tersangka dalam kasus kondensat. Mereka adalah Raden Priyono, Djoko Harsono, dan Honggo Wendratno. Raden Priyono dan Djoko Harsono sudah diketahui posisinya. Sementara, Honggo Wendratno belum ditahan, terakhir kali diketahui menjalani perawatan kesehatan pascaoperasi jantung di Singapura. 

Namun, Singapura melalui akun Facebook Kedutaan Besar Singapura untuk Indonesia membantah keberadaan Honggo di Singapura. 

"Honggo Wendratno tidak ada di Singapura. Kami telah menyampaikan hal ini kepada pihak berwenang Indonesia pada kesempatan sebelumnya. Singapura telah memberikan bantuan penuh kepada Indonesia dalam kasus ini sesuai dengan undang-undang kami dan kewajiban internasional," demikian pernyataan resmi Kementerian Luar Negeri Singapura seperti dikutip dari akun Facebook Kedutaan Besar Singapura untuk Indonesia yang diunggah pada Sabtu 13 Januari 2018.

Perbuatan melawan hukum yang dilakukan oleh para tersangka adalah tindak pidana korupsi pengolahan Kondensat bagian negara. Mereka dinilai melawan hukum karena pengolahan itu tanpa dilengkapi kontrak kerja sama, mengambil, dan mengolah serta menjual Kondensat bagian negara yang merugikan keuangan negara. Sebagaimana telah dilakukan audit oleh Badan Pemeriksa Keuangan Republik Indonesia, kerugian negara mencapai 2,71 miliar dolar AS atau Rp 35 triliun.

Republika, Page-3, Saturday, Jan 20, 2018

March, Auction 43 Oil and Gas Block

Ministry of Energy and Mineral Resources (ESDM) decided to auction 43 oil and gas blocks by 2018. A total of 40 blocks of which are conventional blocks. The remaining 3 oil and gas blocks are nonconventional blocks.

Secretary General of Oil and Gas Ministry of ESDM Ego Syahrial said the block to be auctioned is a combination of unlawful blocks in 2017.

"As well as a mix of non-salable blocks auctioned in 2015 and 2016," he said.

In detail, 40 conventional oil and gas blocks consist of 25 unfair blocks in 2015, 2016, and parts of the new block. The 25 blocks, among others, Rupat Labuhan, South CPR Nibung, Batu Gajah Dua, Bukit Barat, South Tuna, Tongkol, Banyumas, Ampuh, Bast Sepanjang-Kangean and Kasongan Sampit.

oil and gas blocks

Then, Southwest Bengara, Surernana I, Mamuju Manukra, South East Mandar, Karaeng, Ebuny, and East Tanimbar. As well as West Berau, Onjn, Kasuri II, Kasuri III, West Kaimana, North Arguni, and Mamberamo. The remaining 15 blocks are terminated in 2017.

The blocks include Air Komering, East Sokang, East Muriah, North Kangan, Palangka Raya, West Sangata, Belayan, and Southest Mahakam. Then, South Sageri, Halmahera Kotiau, Southwest Bird's Head, Semai IV West Papua III, Cendrawasih Bay II, and Cendrawasih Bay III.

For the three non-conventional blocks, there are MNK Southeast Sumatra, MNK Iembar Rimba, and southern GMB Sumatera. According to the plan, the auction will be conducted in late February or early March 2018. For the 43 blocks, the gross split contract scheme is used.

IN INDONESIA

Maret, Lelang 43 Blok Migas

Kementerian Energi dan Sumber Daya Mineral (ESDM) memutuskan melelang 43 blok migas pada 2018. Sebanyak 40 blok di antaranya merupakan blok konvensional. Sisanya 3 blok minyak dan gas adalah blok nonkonvensional.

Sekretaris Jenderal Migas Kementerian ESDM Ego Syahrial menyatakan blok yang akan dilelang tersebut ialah gabungan dari blok yang tidak laku pada 2017. 

"Serta gabungan dari blok-blok yang tidak laku dilelang pada 2015 dan 2016,” ujarnya.

Jika diperinci, 40 blok migas konvensional itu terdiri dari 25 blok yang tidak Iaku pada 2015, 2016, dan sebagian blok baru. Sebanyak 25 blok tersebut, antara lain, Rupat Labuhan, South CPR Nibung, Batu Gajah Dua, Bukit Barat, South Tuna, Tongkol, Banyumas, Ampuh, Bast Sepanjang-Kangean, dan Kasongan Sampit.

Kemudian, Southwest Bengara, Surernana I, Manakarra Mamuju, South East Mandar, Karaeng, Ebuny, dan East Tanimbar. Serta West Berau, Onjn, Kasuri II, Kasuri III, West Kaimana, North Arguni, dan Mamberamo. Sisanya sebanyak 15 blok merupakan hasil terminasi pada 2017. 

Blok itu meliputi Air Komering, East Sokang, East Muriah, North Kangan, Palangka Raya, West Sangata, Belayan, dan Southest Mahakam. Kemudian, South Sageri, Halmahera Kotiau, Southwest Bird's Head, Semai IV West Papua III, Cendrawasih Bay II, dan Cendrawasih Bay III.

Untuk tiga blok non-konvensional, ada MNK Sumut Tenggara, MNK Iembar Rimba, dan GMB Sumatera bagian selatan. Rencananya, Ielang dilakukan pada akhir Februari atau awal Maret 2018. Untuk 43 blok tersebut, digunakan skema kontrak gross split.

Jawa Pos, Page-5, Saturday, Jan 20, 2018 

Oil Price Dilemma

Within a month, world crude oil prices, both WTI and Brent, continue to rise. For Indonesia, oil price trends are actually a dilemma. On the one hand, Indonesia has become an importer of oil, while on the other hand, the Indonesian economy is still dependent on commodity sectors whose prices are sometimes influenced by crude oil price sentiment.

The price of Brent crude oil on Friday (19/1) for March 2018 shipping contract was 68.5 US dollars per barrel. The WTI crude oil for February 2018 was recorded at 63.25 US dollars per barrel. 

    The rise in world crude oil prices was partly triggered by production restrictions among member countries of the Organization of Petroleum Exporting Countries (OPEC). Fluctuations in crude oil prices are inevitable.

Crude oil prices reached 115 dollars per barrel by mid 2014. However, six months later plunged to 50 dollars per barrel. In January 2016, the price plunged again to 28 US dollars per barrel. When crude oil prices are in a downward trend and are approaching 50 dollars by the end of 2014, the government's policy to revoke the premium subsidies and provide a fixed subsidy of Rp 1,000 for diesel runs smoothly. Relatively no turmoil. This is very different from the previous regimes which always face the challenges of reducing fuel subsidies.

The impact of rising fuel prices after subsidized reductions becomes a difficult choice for the government. However, the government faces another bigger problem when world crude oil prices fall.

Admittedly, Indonesia is still heavily dependent on the commodity sector until now even though the manufacturing industry's blueprint has been launched. Commodity prices, including those of Indonesia's main export, depend not only on the market mechanism of supply and demand laws but also on sentiment.

So far, sentiment that could affect the price of commodities is the trend of world crude oil prices. As crude oil prices rise, commodity prices go up. Vice versa. When the blueprint was launched, the government hoped that Indonesia could be detached from its dependence on commodities as repeatedly Indonesia experienced Dutch Disease. 

     The economic phenomenon in the form of industrial sector decline due to the discovery of abundant natural resources that first appeared in the Netherlands in 1977 was repeatedly experienced by Indonesia.

Initially we experienced the economic illness when found oil and gas reserves abundant in the 1980s, then coal minerals, and the last is crude palm oil.

Indonesia's dependence on the commodity sector is reflected in export performance and "gross domestic product" of a number of commodity-producing regions. In 2012 Indonesia's total exports recorded 156.89 billion US dollars with non-oil contribution of 132.585 or 84.6 percent of total exports. 

     Non-oil exports were supported by animal / vegetable fats and oil products 22.97 billion US dollars (15 percent) and mineral fuel 21.07 billion US dollars (13.77 percent).

The majority of non-oil and gas export destinations are industrialized countries, which further reinforces that non-oil and gas exports are still commodities. These countries include China with 21.32 billion US dollars; United States 121 billion US dollars; EU 16.29 billion US dollars; and Japan 14.7 billion US dollars. 

     In order for the price of crude oil to be not always a dilemma, Indonesia must strengthen the manufacturing industry and can not be postponed again. Although not easy, it must be done to ensure our economy is sustainable.

IN INDONESIA

Dilema Harga Minyak

Dalam sebulan ini, harga minyak mentah dunia, baik WTI maupun Brent, terus naik. Bagi Indonesia, tren harga minyak sebetulnya menjadi dilema. Di satu sisi, Indonesia sudah menjadi importir minyak, sementara di sisi lain, ekonomi Indonesia masih bergantung pada sektor komoditas yang harganya kadang kala dipengaruhi sentimen harga minyak mentah.

Harga minyak mentah jenis Brent pada Jumat (19/ 1) untuk kontrak pengiriman Maret 2018 tercatat 68,5 dollar AS per barrel. Adapun minyak mentah jenis WTI untuk pengiriman Februari 2018 tercatat 63,25 dollar AS per barrel. Kenaikan harga minyak mentah dunia itu antara lain dipicu oleh pembatasan produksi di kalangan negara-negara anggota Organisasi Negara-negara Pengekspor Minyak (OPEC). Fluktuasi harga minyak mentah memang tidak bisa dihindari.

Harga minyak mentah pernah mencapai 115 dollar AS per barrel pada pertengahan 2014. Namun, enam bulan kemudian terjun hingga ke 50 dollar AS per barrel. Pada Januari 2016, harganya terjun lagi hingga ke 28 dollar AS per barrel. Ketika harga minyak mentah berada dalam tren penurunan dan sudah mendekati 50 dollar AS pada akhir 2014, kebijakan pemerintah untuk mencabut subsidi premium dan memberikan subsidi tetap Rp 1.000 untuk solar berjalan mulus. Relatif tidak ada gejolak. Ini sangat berbeda dibandingkan dengan rezim-rezim sebelumnya yang selalu menghadapi berbagai tantangan ketika akan mengurangi subsidi bahan bakar minyak.

Dampak berupa kenaikan harga bahan bakar minyak setelah pengurangan subsidi menjadi pilihan sulit bagi pemerintah. Namun, pemerintah menghadapi persoalan lain yang lebih besar saat harga minyak mentah dunia jatuh. 

Harus diakui, Indonesia masih sangat bergantung pada sektor komoditas hingga kini walaupun cetak biru industri manufaktur sudah diluncurkan. Harga komoditas, termasuk yang menjadi andalan ekspor Indonesia, tidak hanya bergantung pada mekanisme pasar yakni hukum penawaran dan permintaan tetapi juga bergantung pada sentimen. 

Selama ini, sentimen yang bisa ikut memengaruhi harga komoditas adalah tren harga minyak mentah dunia. Ketika harga minyak mentah naik, harga sejumlah komoditas ikut naik. Demikian juga sebaliknya. Ketika cetak biru itu diluncurkan, pemerintah berharap bahwa Indonesia bisa terlepas dari ketergantungan terhadap komoditas karena berulang kali Indonesia mengalami Dutch Disease. Fenomena ekonomi berupa menurunnya sektor industri karena ditemukannya sumber daya alam melimpah yang pertama kali tercetus di Belanda pada 1977 itu berulang kali dialami Indonesia. 

Awalnya kita mengalami penyakit ekonomi itu saat ditemukan cadangan minyak dan gas alam melimpah pada era 1980, lalu mineral batubara, dan terakhir adalah minyak kelapa sawit mentah.

Ketergantungan Indonesia pada sektor komoditas tercermin dari kinerja ekspor dan produk” domestik bruto sejumlah daerah penghasil komoditas. Pada 2012 total ekspor Indonesia tercatat 156,89 miliar dollar AS dengan kontribusi nonmigas 132,585 atau 84,6 persen dari total ekspor. Ekspor nonmigas ditopang oleh produk lemak dan minyak hewan/nabati 22,97 miliar dollar AS (15 persen) dan bahan bakar mineral 21,07 miliar dollar AS (13,77 persen). 

Mayoritas tujuan ekspor non-migas adalah negara-negara industri sehingga makin menguatkan bahwa ekspor nonmigas memang masih berupa komoditas. Negara-negara tersebut antara lain China dengan 21,32 miliar dollar AS; Amerika Serikat 121 miliar dollar AS; Uni Eropa 16,29 miliar dollar AS; dan Jepang 14,7 miliar dollar AS. Supaya harga minyak mentah tidak selalu menjadi dilema, Indonesia harus menguatkan industri manufaktur dan tidak bisa ditunda lagi. Walaupun tidak mudah, itu harus dilakukan untuk menjamin ekonomi kita berkelanjutan.

Kompas, Page-17, Saturday, Jan 20, 2018 

Pertamina Search Partners in East Natuna Block

PT Pertamina is looking for new partners to develop East Natuna Block. Pertamina had previously made a consortium with ExxonMobil and PTT EP Thailand, but disbanded last year.

The East Natuna project is a jumbo gas project with 46 trilfion cubic feet (tcf) gas reserves. However, gas reserves from this field about 70% still mixed with carbon dioxide (CO2), until the need for separation process.

Upstream Director of Pertamina Syamsu Alam said Pertamina needed partners to work on the abandoned block since the discovery of reserves in 1973.

Syamsu Alam

Pertamina hopes to get many partners to work on East Natuna Block, not just two partners like the old one.

"The more, the better," said Syamsu Alam.

If you have got partners to form a consortium, Pertamina will discuss the technology they will use. Before determining the technology, they also first evaluate the technology that had been chosen by the old consortium of technology and market review (TMR).

"We see again is still okay or not, can still be used or not," explained Nature.

the East Natuna Block

On the other hand, Pertamina also needs to reevaluate the economic level to manage the East Natuna Block, especially with the gross split scheme. In addition, Pertamina also needs to review subsurface data to get the commercialization level of the block.

Because many stages have not been passed, Syamsu Alam is pessimistic Pertamina can work on East Natuna Block in the near future. He also has not had any preparation when the next stage like getting partners can start.

"If East Natuna is still long," syamsu added.

Syamsu Alam admitted developing East Natuna Block is not easy. Because this block requires a qualified and economical technology to be able to separate carbon dioxide (CO2), the content reaches 72% in the block.

Especially when the price of oil is still cheap. He pointed out that oil and gas contractors like ExxonMobil have not been able to develop this block when oil price is above US $ 100 / barrel.

"The price of oil US $ 100 per barrel is difficult," he said.

Pertamina believes the government understands why Pertamina has not been able to work on the block on the border.

IN INDONESIA

Pertamina Cari Mitra di Blok East Natuna

PT Pertamina sedang mencari mitra baru untuk mengembangkan Blok East Natuna. Sebelumnya Pertamina memang telah membuat konsorsium bersama ExxonMobil dan PTT EP Thailand, tapi bubar tahun lalu.

Proyek East Natuna adalah proyek gas jumbo dengan cadangan gas 46 trilfion cubic feet (tcf). Namun, cadangan gas dari lapangan ini sekitar 70% masih bercampur karbondioksida (CO2), hingga perlu proses pemisahan.

Direktur Hulu Pertamina Syamsu Alam mengatakan, Pertamina butuh mitra untuk menggarap blok yang terbengkalai sejak penemuan cadangan pada 1973.

Pertamina berharap bisa mendapatkan banyak mitra untuk menggarap Blok East Natuna, bukan hanya dua mitra seperti yang lama. 

"Makin banyak, makin bagus," kata Syamsu Alam.

Jika nanti sudah mendapat mitra untuk membentuk konsorsium, Pertamina akan membahas teknologi yang akan mereka gunakan. Sebelum menentukan teknologi, mereka juga lebih dulu mengevaluasi teknologi yang sempat dipilih oleh konsorsium lama yakni technology and market review (TMR).

"Kami lihat lagi masih oke atau tidak, masih bisa dipakai atau tidak," jelas Alam.

Di sisi lain Pertamina juga perlu mengevaluasi ulang tingkat keekonomian untuk mengelola Blok East Natuna, terutama dengan skema gross split. Selain itu, Pertamina juga perlu mengkaji data subsurface hingga mendapatkan tingkat komersialisasi dari blok tersebut.

Karena banyak tahapan yang belum dilalui, Syamsu Alam pun pesimistis Pertamina bisa mengerjakan Blok East Natuna dalam waktu dekat. Ia juga belum punya persiapan kapan tahapan selanjutnya seperti mendapatkan mitra bisa dimulai.

"Kalau East Natuna masih panjang," syamsu menambahkan.

Syamsu Alam mengakui mengembangkan Blok East Natuna memang tidak mudah. Sebab blok ini memerlukan teknologi yang mumpuni dan ekonomis agar bisa memisahkan karbondioksida (CO2) yang kandungannya mencapai 72% di blok tersebut.

Terlebih saat ini harga minyak masih murah. Ia mencontohkan kontraktor migas sekelas ExxonMobil belum bisa mengembangkan blok ini saat harga minyak di atas US$ 100/barel. 

“Harga minyak US$ 100 per barel saja susah," ujarnya.

Pertamina yakin, pemerintah memahami mengapa Pertamina belum bisa menggarap blok di perbatasan itu.

Kontan, Page-14, Saturday, Jan 20, 2018 

Margin Gas Sales Trimmed

The transition cuts margin to 7% granted for 18 months The Ministry of Energy and Mineral Resources (ESDM) finally cuts its gas sales margin through pipes from about 2.5% to 7%.

The provision is in the Minister of Energy and Mineral Resources Regulation N0. 58/2017 on Gas Sale Price through Pipes in Oil and Gas Downstream Business Activities. Not only cut the margin, in the new rules, the government also set the limit of return on the capital alias internal rate of return (IRR) is 11% in US Dollar. But it can be increased to 12% if infrastructure in the region has not developed (pioneering).

Ego Syahrial

Secretary-General of the ESDM Ministry Ego Syahrial said, with the regulation, gas prices to consumers can be more affordable and competitive. Even so, I can not guarantee the price of gas until the consumer can be US $ 6 per mmbtu, "he said

To be sure, the Ministry of Energy and Mineral Resources tries to follow the Presidential Regulation no. 40/2016 on Natural Gas Pricing.

"But the reality of specific development in the field is different," explained Ego.

Chairman of the Indonesian Natural Gas Trader Association (INGTA) aka Organization of Natural Gas Distributors Indonesia Sabrun Jamil stressed the decline in gas prices should start from upstream. Therefore, the largest component of gas prices in the upstream.

"Upstream has not been cut, the US $ 6 per mmbtu figure will not be achieved by this regulation, we usually sell US $ 9 per mmbtu," he said. But IRR at 11% 12%, according to the industry count.

Hatim Ilwan, Pertagas Public Relation & CSR Manager said that the target price of gas to consumers up to US $ (S per mmbtu is still difficult to achieve because the current average gas upstream price in the range of US $ 7-US $ 8 per mmbtu.

"If the upstream price is more than US $ 6 per mmbtu, how, perhaps, would give consumers a price of US $ 6 per mmbtu?" he said.

Based on data, at present, oil and gas upstream margin is 16%, transmission cost 5%, distribution cost 25%, and company margin reach 25% 35%. It's just that Hatim has not been able to answer Pertagas's gas trading margins by reason of not holding the data.

Secretary of PT Perusahaan Gas Negara Tbk (PGN), Rachmat Hutama, explained that the regulation on gas can reorganize the natural gas governance downstream for the better.

"This can rationalize the pricing of gas to the consumer," he said.

So, what about PGN gas prices? Based on data from the Ministry of Energy and Mineral Resources PGN gas prices in the West Java industry of US $ 8.77 per mmbtu, in Medan even reached US $ 12.22 per mmbtu.

Elisa Sinaga, Chairman of Indonesian Ceramic Industry Association, said that the Regulation of the Minister of EMR stated that the 18-month transition period for gas business entities to set a 7% margin and IRR of 11%.

"This rule is playful, we have been killed, he complained.

IN INDONESIA

Margin Penjualan Gas Dipangkas

Masa transisi memangkas margin menjadi 7% diberikan selama 18 bulan Kementerian Energi dan Sumber Daya Mineral (ESDM) akhirnya memotong margin penjualan gas bumi melalui pipa dari sekitar 2.5% menjadi 7%. 

Ketentuan itu ada didalam Peraturan Menteri ESDM N0. 58/2017 tentang Harga Jual Gas Bumi Melalui Pipa Pada Kegiatan Usaha Hilir Migas. Bukan saja memotong margin, dalam aturan baru itu, pemerintah juga menetapkan batasan pengembalian modal alias internal rate of return (IRR) paling besar 11% dalam mata uang dollar Amerika Serikat. Namun bisa ditambah menjadi 12%, jika infrastruktur di wilayah itu belum berkembang (pioneering).

Sekretaris Jenderal Kementerian ESDM Ego Syahrial mengatakan, dengan aturan tersebut, harga gas ke konsumen bisa lebih terjangkau dan kompetitif. Meski begitu, Saya tidak bisa menjamin harga gas hingga konsumen bisa US$ 6 per mmbtu," kata dia 

Yang pasti, Kementerian ESDM berusaha mengikuti Peraturan Presiden No. 40/2016 tentang Penetapan Harga Gas Bumi. 

"Tapi realitas pengembangan spesifik di lapangan berbeda-beda," terang Ego.

Ketua Indonesian Natural Gas Trader Association (INGTA) alias Organisasi Perusahaan Distributor Gas Alam Indonesia Sabrun Jamil menegaskan, penurunan harga gas harus dimulai dari hulu. Sebab, komponen terbesar harga gas di hulu. 

"Hulu belum dipotong. Angka US$ 6 per mmbtu tidak akan dicapai dengan (aturan) ini, kami biasa menjual US$ 9 per mmbtu," kata dia. Tapi IRR di 11%12%, sesuai hitungan industri.

Hatim Ilwan, Public Relattion & CSR Manager Pertagas mengatakan, target harga gas ke konsumen hingga US$ (S per mmbtu masih sulilt tercapai sebab rata-rata harga gas hulu saat ini di kisaran US$ 7-US$ 8 per mmbtu. 

"Jika harga hulu lebih dari US$ 6 per mmbtu, bagaimana, mungkin mau memberikan harga ke konsumen US$ 6 per mmbtu?" ungkapnya.

Berdasakan data, saat ini, margin hulu minyak dan gas 16%, biaya transmisi 5%, biaya distribusi 25%, dan margin perusahaan mencapai 25%35%. Hanya saja Hatim belum bisa menjawab margin niaga gas Pertagas dengan alasan tidak memegang data. 

Sekretaris PT Perusahaan Gas Negara Tbk (PGN) Rachmat Hutama menjelaskan, aturan soal gas pipa bisa menata kembali tata kelola gas bumi di hilir menjadi lebih baik. 

"Ini bisa merasionalkan penetapan harga gas ke konsumen," ujarnya.

Lantas, bagaimana dengan harga gas PGN? Berdasarkan data Kementerian ESDM harga gas PGN di industri Jawa Barat sebesar US$ 8,77 per mmbtu, di Medan bahkan mencapai US$ 12,22 per mmbtu.

Elisa Sinaga, Ketua Umum Asosiasi Aneka Industri Keramik Indonesia mengatakan Peraturan Menteri ESDM menyebutkan, masa transisi selama 18 bulan bagi badan usaha gas untuk menetapkan margin 7% dan IRR 11%. 

"Aturan ini main-main, sudah keburu mati kami, ujarnya mengeluh.

Kontan, Page-1, Friday, Jan 19, 2018 

Pertamina faces pressure

State-owned oil and gas firm Pertamina is facing pressure as the government has decided to maintain until March the same fuel price it has set over the past two years, despite the rising global oil price.

The government will review the price after April 1 but there is speculation that an increase in the fuel price is unlikely, given objection from the ruling party ahead of the regional elections in June and presidential election next year.

By keeping the fuel price unchanged, the government is trying to keep inflation in check and sustain its populist approach. The rising global oil price brought the Indonesian Crude Price (ICP) to US$65 per barrel on Wednesday, much higher than the $48 per barrel set in the state budget and the $52 per barrel average ICP in 2017.

While the government acknowledged Pertamina would see a decline in revenue, it is of the opinion that profits will still be “good”.

“Pertamina will still book a good profit, though there’s [potential] for a decline in revenue,” said Ego Syahrial, acting oil and gas director general at the Energy and Mineral Resources Ministry during a six-hour meeting with House of Representatives Commission VII overseeing energy Regarding the fuel price beyond April 1, Ego Syahrial said the government would closely monitor fluctuations in the global oil price.

Pertamina- finance director Arif Budiman, meanwhile, predicted that net profit would remain stagnant this year at $2.4 billion. The decision means the prices of Premium gasoline and Solar diesel, the two fuels popular among low-income people, will remain at Rp 6,450 (47.8 US cents) per liter and Rp 5,150 per liter, respectively.

Pertamina president director Elia Massa Manik once said Pertamina’s fuel prices were lower than fuel prices in Singapore and Japan, which range from Rp 10,000 to Rp 50,000 per liter. Bhima Yudhistira Adhinegara, an economist at the Institute for Development of Economics and Finance (INDEF), said it would be unlikely for the government to make the unpopular decision to increase Premium and Solar prices ahead ofthe regional and presidential elections as it had to carefully maintain the inHation rate; Hence. he said the government might be forced to let energy subsidies soar amid increasing crude prices, while trying to limit spending in areas such as infrastructure.

“However, it is also possible that the government will sacrifice Pertamina once again by forcing the company to bear the subsidy burdens itself. Then, the government will repay its debts to Pertamina later in the future,” Bhima said.

The last option, if chosen by the government, will further weigh on Pertamina’s financial state amid the company’s mounting tasks in the upstream and downstream oil and gas sectors. Pertamina has estimated it will need around $120 billion to support its business plans within the next decade, one-third of which will be used to finance various refinery projects.

The company has allocated $5.5 billion in capital expenditure in 2018, up from $4.5 billion last year. It has projected that the figure will reach around $10 billion ayear in the 2019-2021 period following the start of the construction of refinery projects.

The government has also ordered Pertamina to support the former’s one fuel-price policy, which aims to ensure fuel prices are uniform throughout the entire archipelago. Under the policy Pertamina is tasked with establishing fuel distribution agents in 150 remote locations in the 2017-2019 period with a total investment of around Rp 3.8 trillion.

Once completed, Pertamina estimates it will need to disburse Rp 3 trillion annually to keep the program running.

Jakarta Post, Page-1, Friday, Jan 19, 2018