Indonesia Economy Forum

[Indos]

Pertamina to drill up to 180,000 bpd from Rokan oil block after takeover

• Norman Harsono
  The Jakarta Post

Jakarta / Fri, July 17, 2020 / 10:49 am

Chevron workers inspect an oil and gas facility at Rokan block in Riau. Pertamina Hulu Energi (PHE) aims to produce between 170,000 and 180,000 barrels of oil per day (bopd) from the celebrated Rokan block in Riau once it takes the block over next year. (SKK Migas/SKK Migas)

Pertamina Hulu Energi (PHE) aims to produce between 170,000 and 180,000 barrels of oil per day (bopd) from the celebrated Rokan block in Riau once it takes the block over next year.

PHE president director Budiman Pahursip said on Wednesday the company aimed to maintain such output levels by drilling new oil wells starting “the first day” of the takeover, which is on Aug. 8, 2021.

“This is important during a takeover to ensure production does not drop sharply,” he said during a webinar hosted by extractive industry watchdog Publish What You Pay (PWYP) Indonesia.


He went on to say that PHE, a subsidiary of state-owned oil giant Pertamina, would continually drill new wells in the aging Rokan block in pushing production up to 200,000 bopd. He did not mention a timeline.

The block yielded 190,131 bopd last year under the helm of PT Chevron Pacific Indonesia (CPI), a subsidiary of one of the world’s biggest oil companies, Chevron.

Pertamina will be taking over the 50-year-old block, which is the country’s second-most productive oil block, from CPI next year, when the latter company’s permit is slated to expire.

Pertamina, Chevron and the Indonesian government, through the Upstream Oil and Gas Special Regulatory Taskforce (SKK Migas), have formed a steering committee to ensure Rokan’s smooth takeover, defined as one without a sharp drop in output.

“At this time, we are collaborating closely with SKK Migas to prepare the technical implementation,” a CPI spokeswoman told The Jakarta Post on Thursday.

“We are grateful for the government’s direction and initiative to provide solutions to invest to optimize national oil production,” she added.

SKK Migas had previously ordered Chevron to drill 11 new oil wells in November this year. The new wells are expected to boost block output by 3,000 bopd, prior to the takeover.

Despite being one of the country’s most celebrated blocks, Rokan block’s output has steadily declined over the past few years due to the natural exhaustion of reserves.

The government expects nationalizing the block to maintain production levels, which saw a landmark decline of 9.2 percent year-on-year to 190,131 bopd in 2019. Prior to 2019, the oil block was the country’s most productive.

https://www.thejakartapost.com/news...-bpd-from-rokan-oil-block-after-takeover.html

 

[Logam42]

Pertamina to drill up to 180,000 bpd from Rokan oil block after takeover

• Norman Harsono
  The Jakarta Post

Jakarta / Fri, July 17, 2020 / 10:49 am

Chevron workers inspect an oil and gas facility at Rokan block in Riau. Pertamina Hulu Energi (PHE) aims to produce between 170,000 and 180,000 barrels of oil per day (bopd) from the celebrated Rokan block in Riau once it takes the block over next year. (SKK Migas/SKK Migas)

Pertamina Hulu Energi (PHE) aims to produce between 170,000 and 180,000 barrels of oil per day (bopd) from the celebrated Rokan block in Riau once it takes the block over next year.

PHE president director Budiman Pahursip said on Wednesday the company aimed to maintain such output levels by drilling new oil wells starting “the first day” of the takeover, which is on Aug. 8, 2021.

“This is important during a takeover to ensure production does not drop sharply,” he said during a webinar hosted by extractive industry watchdog Publish What You Pay (PWYP) Indonesia.


He went on to say that PHE, a subsidiary of state-owned oil giant Pertamina, would continually drill new wells in the aging Rokan block in pushing production up to 200,000 bopd. He did not mention a timeline.

The block yielded 190,131 bopd last year under the helm of PT Chevron Pacific Indonesia (CPI), a subsidiary of one of the world’s biggest oil companies, Chevron.

Pertamina will be taking over the 50-year-old block, which is the country’s second-most productive oil block, from CPI next year, when the latter company’s permit is slated to expire.

Pertamina, Chevron and the Indonesian government, through the Upstream Oil and Gas Special Regulatory Taskforce (SKK Migas), have formed a steering committee to ensure Rokan’s smooth takeover, defined as one without a sharp drop in output.

“At this time, we are collaborating closely with SKK Migas to prepare the technical implementation,” a CPI spokeswoman told The Jakarta Post on Thursday.

“We are grateful for the government’s direction and initiative to provide solutions to invest to optimize national oil production,” she added.

SKK Migas had previously ordered Chevron to drill 11 new oil wells in November this year. The new wells are expected to boost block output by 3,000 bopd, prior to the takeover.

Despite being one of the country’s most celebrated blocks, Rokan block’s output has steadily declined over the past few years due to the natural exhaustion of reserves.

The government expects nationalizing the block to maintain production levels, which saw a landmark decline of 9.2 percent year-on-year to 190,131 bopd in 2019. Prior to 2019, the oil block was the country’s most productive.

https://www.thejakartapost.com/news...-bpd-from-rokan-oil-block-after-takeover.html

Lets hope it actually pans out that way

I tend to believe that nationalization will improve the profit-sharing of the resources extracted (as in the nation recieves more benefit).

When it comes to raw output though, more often then not output will slump, at least short to medium term. After all, operations are disrupted during takeover, previous operator (i.e the foriegn company) will cut investments in production capacity since they won't recieve the benefit anyway... and our SOEs are rarely better than the profit-maximising foriegn company.

 

[Indos]

Lets hope it actually pans out that way

I tend to believe that nationalization will improve the profit-sharing of the resources extracted (as in the nation recieves more benefit).

When it comes to raw output though, more often then not output will slump, at least short to medium term. After all, operations are disrupted during takeover, previous operator (i.e the foriegn company) will cut investments in production capacity since they won't recieve the benefit anyway... and our SOEs are rarely better than the profit-maximising foriegn company.

Base on previous take over by Pertamina, the oil field has become more productive.

 

[Indos]

There are three Indonesian entities that are trying to make Covid 19 vaccines. Eijkman laboratory (government agency), Biofarma (state owned drug company), and Kalbefarma (private owned drug company). Eijkman is the one who can be regarded as making local vaccine as the other two are making cooperation with China and Korea.

According to Dr Reisa, Covid 19 task force communication officer, Indonesian local vaccine has finished undergoing 8 stages in making a vaccine while in order to complete the development it needs 15 stages. Local vaccine is predicted to reach mass production stage in middle of 2021.

 

[Nike]

This Medco energy is world class one

MedcoEnergi reports first gas production from Meliwis Field
20th Jul 2020 13:41

Jakarta (ANTARA) - PT Medco Energi Internasional (MedcoEnergi) reported first gas production from Meliwis Field on July 13 in its working area in Madura offshore, East Java, four years since the field’s discovery in Mundu Formation in 2016.

CEO of Indonesian oil and gas company MedcoEnergi Roberto Lorato noted in a statement here on Monday that the company had completed development of the Meliwis gas field despite hindrance in the distribution of logistics in the wake of the COVID-19 pandemic.

The field has used unmanned platforms and a 11-kilometer underwater pipeline to supply up to 20 MMCFD of natural gas to the industry in East Java.

"This is testament to MedcoEnergi’s capability to operate and maintain its sustainable commitment to all stakeholders," he stated.

President Director of MedcoEnergi Hilmi Panigoro earlier stated that the oil and gas company had witnessed a drop in demand owing to the COVID-19 pandemic though concurrently oil and gas production had risen.

"We are facing a challenging time. The swift declining demand for energy amid the increased production of oil is a challenge for the industry," he noted.

Nonetheless, MedcoEnergi will continue to support the government to maintain the nation’s energy supply.
Related news: PHE-Medco E&P Simenggaris to supply gas to mini-LNG refinery

Related news: Medco wraps up process of 50-percent acquisition of Newmont NT

EDITED BY INE

Translated by: Afut SN, Sri Haryati
Editor: Fardah Assegaf
https://en.antaranews.com/news/152682/medcoenergi-reports-first-gas-production-from-meliwis-field

 

[Indos]

Pertamina Announces Breakthrough in 100% Biofuel Manufacturing
BY :EUIS RITA HARTATI

JULY 16, 2020

Jakarta. The state energy company Pertamina has announced success in producing the refined, bleached, and deodorized palm oil used for 100 percent biofuel, or the so-called Green Diesel, at its Dumai refinery in Riau, paving the way for Indonesia's ambition to switch to the green fuel as soon as next year.

Pertamina said the refinery produced 1,000 barrels biofuel per day in the third trial run on July 2-9, Pertamina's president director Nicke Widyawati said on Wednesday. The previous trials produced biofuel with a palm oil content of 7.5 percent and 12.5 percent.

"I congratulate my colleagues at Pertamina, especially those at the Dumai refinery who has proven that we are capable," Industry Minister Agus Gumiwang Kartasasmita said.

Indonesia sees palm-oil based biofuel as a solution to slash its costly diesel imports, which have put its current account balance in the red in the past decade. Also, palm oil faces growing rejection from consumers in the developed market that could decrease its demand.

Facing the challenges, President Joko "Jokowi" Widodo's was adamant for Indonesia to be able to produce biofuel with 100 percent palm oil content soon. Today, the government has made the use of B40, or diesel fuel with 40 percent mix of biofuel mandatory, a step up from B30 last year.

Pertamina's Nicke said Pertamina's success was a result of support from the government and the palm oil producers.

"Thank you to the government and all related parties for their full support to Pertamina. This trial shows that we are ready regarding the refineries and catalysts technology," she said.

"Now, we need to think how to implement it so that it makes economic sense," said Nicke.

Indonesia currently makes 42-46 million metric tons of palm oil every year, with 11.5 percent of the amount is used to make biodiesel.

NIcke said Pertamina was constructing a green diesel production unit with a capacity of 20,000 barrels per day at the company's Plaju refinery in South Sumatra.

https://jakartaglobe.id/business/pertamina-announces-breakthrough-in-100-biofuel-manufacturing

Alhamdulillah

 

[nufix]

Pertamina Announces Breakthrough in 100% Biofuel Manufacturing
BY :EUIS RITA HARTATI

JULY 16, 2020

Jakarta. The state energy company Pertamina has announced success in producing the refined, bleached, and deodorized palm oil used for 100 percent biofuel, or the so-called Green Diesel, at its Dumai refinery in Riau, paving the way for Indonesia's ambition to switch to the green fuel as soon as next year.

Pertamina said the refinery produced 1,000 barrels biofuel per day in the third trial run on July 2-9, Pertamina's president director Nicke Widyawati said on Wednesday. The previous trials produced biofuel with a palm oil content of 7.5 percent and 12.5 percent.

"I congratulate my colleagues at Pertamina, especially those at the Dumai refinery who has proven that we are capable," Industry Minister Agus Gumiwang Kartasasmita said.

Indonesia sees palm-oil based biofuel as a solution to slash its costly diesel imports, which have put its current account balance in the red in the past decade. Also, palm oil faces growing rejection from consumers in the developed market that could decrease its demand.

Facing the challenges, President Joko "Jokowi" Widodo's was adamant for Indonesia to be able to produce biofuel with 100 percent palm oil content soon. Today, the government has made the use of B40, or diesel fuel with 40 percent mix of biofuel mandatory, a step up from B30 last year.

Pertamina's Nicke said Pertamina's success was a result of support from the government and the palm oil producers.

"Thank you to the government and all related parties for their full support to Pertamina. This trial shows that we are ready regarding the refineries and catalysts technology," she said.

"Now, we need to think how to implement it so that it makes economic sense," said Nicke.

Indonesia currently makes 42-46 million metric tons of palm oil every year, with 11.5 percent of the amount is used to make biodiesel.

NIcke said Pertamina was constructing a green diesel production unit with a capacity of 20,000 barrels per day at the company's Plaju refinery in South Sumatra.

https://jakartaglobe.id/business/pertamina-announces-breakthrough-in-100-biofuel-manufacturing

Alhamdulillah

How about Premium/Pertamax?

 

[trishna_amṛta]

How about Premium/Pertamax?

What about them?

 

[Nike]

Pupuk Indonesia issues bonds worth Rp2.5 trillion
20th July 2020

President director of Pupuk Indonesia, Aas Asikin Idat (center). (ANTARA /HO-Pupuk Indonesia)

Jakarta (ANTARA) - PT Pupuk Indonesia (Persero), Indonesia's largest state-owned fertilizer company, on Monday issued bonds worth Rp2.5 trillion as part of the first phase of its Sustainable Public Offering (PUB) in 2020.

Pupuk Indonesia plans to release bonds worth a total of Rp8 trillion under its Sustainable Public Offering (PUB) II.

The bond issuance is part of the company's strategy to diversify external funding sources apart from banks, president director of Pupuk Indonesia, Aas Asikin Idat, said here on Monday

"In addition to diversifying funding sources, this is one of our efforts to reduce interest rate volatility by switching from variable rate to fixed rate, so that we can have long-term efficiency," he said at an online press conference.

The bond funds will be used for re-profiling debt (bank loans and bonds), both at the parent company and subsidiaries.

Idat said he is optimistic the bond issuance target can be absorbed by the market given the company's stable performance, which has, in fact, shown an improvement, even amid the COVID-19 pandemic.

In the first phase of PUB II this year, Pupuk Indonesia will release bonds in three tranches: Series A with a 3-year tenor, Series B with a 5-year tenor, and Series C with a 7-year tenor. Interest payments will be made quarterly, calculated using the 30/360 convention.

For Series A bonds with a tenor of 3 years, the coupon is offered at 6.25-7.25 percent; Series B with a 5-year tenor of 7-8.30 percent; and, Series C with a 7-year tenor of 7.5--8.75 percent.

The initial bond offering period is July 16-30, 2020, while the public offering is scheduled for August 14-18, 2020.

Pupuk Indonesia has appointed PT Bahana Sekuritas, PT BCA Sekuritas, PT BNI Sekuritas, PT Danareksa Sekuritas, PT Mandiri Sekuritas as Joint Lead Underwriters (JLU), and PT Bank Mega Tbk as trustees for the bond offering.

Pupuk Indonesia's sustainable bonds have received ‘AAA (idn)’ rating from PT Fitch Ratings Indonesia. The bonds are being issued without special collateral (clean basis).

Related news: Pupuk Indonesia fertilizer production hit record high in 2019

Pupuk Indonesia is a state-owned enterprise (BUMN) which has 10 subsidiaries with an integrated business scope. The enterprise has five fertilizer producers — PT Pupuk Iskandar Muda, PT Pupuk Sriwidjaja Palembang, PT Pupuk Kujang, PT Petrokimia Gresik, and PT Pupuk Kaltim.

It also has five non-fertilizer subsidiary companies: PT Rekayasa Industri, PT Mega Eltra, PT Pupuk Indonesia Energi, PT Pupuk Indonesia Logistik, and PT Pupuk Indonesia Pangan.

Pupuk Indonesia plays an important role in securing fertilizer supply to support the national food security program. The company has been assigned by the government to distribute fertilizers at a subsidized rate (Public Service Obligation) to all regions in Indonesia. In addition, it also sells its products to domestic commercial markets and in export markets.

In 2019, Pupuk Indonesia distributed and sold 13.76 million tons of subsidized and non-subsidized fertilizers and non-fertilizer products.

Its total income from fertilizers in 2019 stood at Rp71.3 trillion, an increase of 10 percent annually on average. Meanwhile, the BUMN’s profit increased by an average of 10 percent per year from 2017 to 2019.

Last year, Pupuk Indonesia booked a current year profit of Rp3.71 trillion, with its total assets valued at Rp135.55 trillion.

The company has managed to maintain its ranking as the top 10 global fertilizer companies based on total assets, revenue, EBITDA (earnings before interest, taxes, depreciation, and amortization), and net profit.
https://en.antaranews.com/news/152706/pupuk-indonesia-issues-bonds-worth-rp25-trillion

 

[Nike]

Govt inaugurates C. Java plant able to produce fuel from waste

• Dzulfiqar Fathur Rahman
  The Jakarta Post
  

Jakarta / Tue, July 21, 2020 / 02:13 pm
Island of plastic: Goats rummage through plastic waste on Panggang Island in Thousand Islands regency, north of Jakarta. The government plans to impose a plastic bag excise tax in a bid to fight plastic pollution. (JP/Wendra Ajistyatama)

The government inaugurated on Monday a facility to produce refuse-derived fuel (RDF), a fuel made of various types of waste, in Cilacap, Central Java, as part of efforts to improve Indonesia’s waste management and speed up the country’s transition to renewable energy.

The Rp 90 billion (US$6.09 million) facility, the first of its kind in Indonesia, is the result of a cooperation agreement between the Public Works and Housing Ministry, the Environment and Forestry Ministry, the Denmark Embassy, regional administrations and publicly listed building materials manufacturer PT Solusi Bangun Indonesia.

The RDF facility is also a pilot project for improving Indonesia’s waste management, said Coordinating Maritime Affairs and Investment Minister Luhut Binsar Pandjaitan.

“We need a breakthrough in waste management to reduce cities or regencies’ dependence on final disposal sites [TPA], which has long been an issue both on the environment and social fronts,” Luhut was quoted in a statement as saying on Monday.

Solusi Bangun Indonesia, which operates four cement factories across the country, including in Cilacap, is planning to produce 50 tons of RDF from 120 tons of waste every day. The firm will use the fuel as an alternative to coal to power its cement plant.


Indonesia, the world’s second-largest contributor of plastic pollutants in the ocean, has been working to solve its waste problem.

According to the World Bank’s Indonesia Marine Debris Hotspots Rapid Assessment, 20 percent of the country's plastic waste ends up in rivers and coastal waters.

The government is planning to reduce the country’s marine plastic debris by 70 percent between 2020 and 2025 and become free of plastic pollution by 2040.

Nani Hendiarti, the Office of the Coordinating Maritime Affairs and Investment Minister's deputy of environment and forestry management, said the new facility would open up business opportunities waste management for individuals and companies.

“We hope this RDF facility will shift waste management from a cost burden to a business model that can create economic activity, through which the public can contribute to increase the shares of renewable energy in Indonesia,” Nani said.

The alternative source of fuel could also be used to replace coal at steam-electric power plants (PLTU), the ministry said on Monday

The government also plans to partner with PT Indonesia Power, a subsidiary of state-owned electricity company PLN, to use the alternative fuel at power plants.

https://www.thejakartapost.com/news...va-plant-able-to-produce-fuel-from-waste.html

 

[Indos]

How about Premium/Pertamax?

Do you mean pouring palm oil into Premium/Pertamax ? Maybe it is still quite difficult to do it for gasoline engine, thats why biofuel is used for diesel engine.

Talking about palm oil, the price has gone up significantly and almost reach pre-Covid price level.

 

[Nike]

pdf about railway policies development in Indonesia

 

[Indos]

In the latest IMF projection, Indonesia is predicted to get 0.3 % contraction this year. I think the projection is quite reasonable although I still hope Indonesia, some how, can still grow at least 0.5 % in 2020.


--------------------------------------------------------------------------------------------------------------------

Indonesia’s economy is on track for a significant contraction this year as the coronavirus crisis has hit the global economy more severely than previously expected, the International Monetary Fund (IMF) has forecast.

The United States-based institution projects that Southeast Asia’s biggest economy will contract by 0.3 percent this year, according to the June update of the World Economic Outlook titled A Crisis Like No Other, An Uncertain Recovery, which was published on Wednesday. The global economy, meanwhile, is expected to shrink by 4.9 percent.

https://www.thejakartapost.com/news...-shrink-indonesias-economy-imf-forecasts.html

-----------------------------------------------------------------------------------------------------------------------

I think the words significant contraction is not suitable since the contraction is only 0.3 %, much better than the IMF projection for many countries as global world will see contraction around 5 %

 

[Indos]

Light at end of tunnel for auto industry as June car sales rebound: Experts

• Mardika Parama
  The Jakarta Post
  

Jakarta / Thu, July 23, 2020 / 12:27 pm

A worker mops the floor at Tunas Daihatsu car dealer in Jakarta on June 16. Indonesia’s automotive industry players can breathe a sigh of relief as national car sales in June rebounded strongly, promising a smoother road for the rest of the year, analysts have said. (Antara/Rivan Awal Lingga)

Indonesia’s automotive industry players can breathe a sigh of relief as national car sales in June rebounded strongly, promising a smoother road for the rest of the year, analysts have said.

National car sales jumped more than threefold in June to 12,623 units from a record low 3,551 units a month before, according to Association of Indonesian Automotive Manufacturers (Gaikindo) data compiled by diversified conglomerate PT Astra International. Despite the rebound, sales in June were almost 79 percent lower year-on-year (yoy).

In total, sales reached 260,933 units during the first half, a plunge of around 46 percent from the same period last year.


“We expect the recovery to ramp up ahead,” RHB Sekuritas analyst Andrey Wijaya wrote in a research note dated July 16. “We are also positive on monthly sales, as national retail sales came up to 29,682 units (+74.8 percent mom [month-on-month], -54.6 percent yoy) – which means dealers’ businesses have begun to return to normal levels.”

However, he warned that an increase in COVID-19 infections would have a severe negative impact on the auto industry, as well as a further weakening in global economic growth.

Car sales have become one of the indicators of Indonesia’s household spending, which accounts for more than half of the country’s gross domestic product (GDP).

Indonesia’s automotive industry was hit hard by the government’s decision to implement large scale social restrictions (PSBB) in several cities nationwide to curb the spread of the coronavirus. Car wholesales nosedived in April and hit rock bottom in May with a more than 95 percent annual drop as the pandemic hit demand.


A rebound in car sales in June is highly likely due to pent up demand after most dealers closed their doors for more than two months due to the partial lockdowns, Sucor Sekuritas analysts wrote in a report on July 1.

“Although it is still too early to conclude that purchasing power has returned, we are happy to see that sales performance has started to gain traction,” they wrote.

“It is also our strong belief that the sales trend will further improve, albeit slowly, in the second half. At this juncture, we project car sales will decline by 30 to 40 percent yoy this year to only around 600,000 to 700,000 units versus 1.05 million units in 2019.”

Previously, Gaikindo decided to cut its domestic car sales target this year by 40 percent to just 600,000 units. The association also slashed Indonesia’s car export target to 175,000 units in 2020 from the initial target of 350,000 to 400,000 units.

Indonesia has recorded national car sales of around 1 million units annually in recent years.

Gaikindo co-chairman Jongki Sugiarto told The Jakarta Post on Monday that carmakers aimed to sell at least 30,000 cars in July to achieve its sales projection of 100,000 cars in the April-July period.

“If we could achieve 100,000 car sales in [in the April to July period], we could achieve our annual target. I believe we can achieve that,” he said.

Automotive industry expert Bebin Djuana said on Tuesday that manufacturers should keep their production low despite the sales increase in June, as falling car demand from March to May caused rising car stocks in dealers across the country.

Four-wheeled vehicle production reached over 82,000 and 89,000 units in February and March, respectively, according to Gaikindo data.

The car production rate dropped by April and hit rock-bottom in May with only 1,997 cars being produced during the month. The production number climbed in June with 16,000 units, as car sales started to rebound.

The improvement in the industry is expected to be beneficial for Astra, half of whose revenue is sourced from the automotive business, according to RHB Sekuritas and Sucor Sekuritas analysts.

Astra, whose stocks trade at the Indonesia Stock Exchange (IDX) under the code ASII, traditionally hold more than half of the country’s car wholesale market share but its share dropped to a record low of 31 percent and 38 percent in May and June, respectively.

“We believe ASII is likely to benefit in the longer term, supported by our unchanged thesis of an increase in demand for higher-capacity automobiles, as the new normal (social distancing, public health fears) may result in the public leaning more toward using private vehicles over public transportation,” Andrey of RHB said.

Astra’s stocks had dropped 2.79 percent as of 2:36 p.m. Western Indonesia Time on Wednesday as the main gauge, the Jakarta Composite Index (JCI) slipped 0.24 percent. The stocks have lost 23 percent of their value in the last year. (prm)

https://www.thejakartapost.com/news...dustry-as-june-car-sales-rebound-experts.html

 

[NEKONEKO]

Trans-Java toll road