Freeport Wants to Build A Smelter, As Long As
PT Freeport Indonesia has said that they’re keen on finishing the development of their copper smelter in 5 years, with expected commercial operation start in 2022. But the Company has mentioned several conditions for this compliance concerning investment stability, fiscal regulation concerning tax, share divestment, and contract extension.
Confusion with the Minister of Energy and Mineral Resources Regulation No.34/2017
To this day there has not been any new progress on the development of smelters. The Ministry of Energy and Mineral Resources (ESDM) noted that as of 2016, only 30 percent of the mining companies required to construct a smelter have done so, despite the requirement being put in place since 2014 with the raw minerals export ban. In a bid to change the situation for the good, ESDM decided to publish the Minister of ESDM regulation (Permen No. 34/2017), which contains a clause promising extended operating license to those building their smelter.
Growing Optimism for Connectivity (6)
Ministry of public works and housing has earlier this week signed agreements with various parties for the development of infrastructure in 10 tourism destinations prioritized by central government. Under the agreements, central government will provide development support for residential areas, water infrastructure, and sanitation. Today, the ministry also kicked off tender for the development of Trans South-South Java Road Project with US$250 million of financing from Islamic Development Bank (IDB).
Those Continue to Invest in F&B
Investment may yet to be in the pace the government wanted to achieve a stronger economic growth, but when it comes to food and beverage industry, companies continue to invest. Beer producer Multi Bintang Indonesia (MLBI), for example, has established a new subsidiary to focus in the beverage business.
Growing Optimism on Connectivity (5)
So, the first set of skytrain for Soekarno-Hatta International Airport has arrived on site. This is the first modern facility for Indonesian airport. State-owned airport management company PT Angkasa Pura II claimed of having spent Rp520 billion for the rolling stock built by Woojin (South Korea) in partnership with Indonesian state company PT LEN Industri.
ESDM to Freeport: IUPK Is Not the Same as KK
PT Freeport Indonesia is still negotiating the conversion of their Contract of Work (KK) to Special Mining License (IUPK) with the Government of Indonesia. The Government, however, has been finding it difficult to come to an agreement with the giant mining company, and the Government seems to be getting even more annoyed that Freeport Indonesia is insisting on maintaining some of terms in its KK for the IUPK.
Total E&P May Seek 39 Percent of Mahakam Block
The Ministry of Energy and Mineral Resources (ESDM) gave the management of the Mahakam Block to PT Pertamina, after Total E&P’s contract for the Block expired. That said, Pertamina is going to partner with Total for the management of the Block. When Sudirman Said was minister of ESDM, the recommendation was for Pertamina to share 30 percent of Mahakam to Total E&P, with another 10 percent to give to the local government of East Kalimantan. But now, under Ignasius Jonan, Total E&P may get up to 39 percent.
Comments on the Newly-Appointed SKK Migas Deputy Chief Sukandar
Minister of Energy and Mineral Resources Ignasius Jonan made Sukandar the new deputy chief of the Special Task Force for Upstream Oil and Gas Business Activities on Friday May 26. Sukandar replaces M.I. Zikrullah. He was one of the candidates to replace the then Pertamina Director Dwi Soetjipto but he didn’t make the cut.
Infrastructurre Journal No.19/2017
President Jokowi expressed his disappointment over slow progress of Jakarta-Bandung high-speed train (HST) project due to difficulties in land acquisition. He also questioned opposition from some groups to the massive infrastructure development in the country. “Other countries reap benefits from advanced infrastructure, but we still debating the benefits of our infrastructure program,” the President said yesterday.
Growing Optimism for Connectivity (3)
Two sections of Medan-Binjai toll road in North Sumatra province are just inches away from completion and commercial operation. One section of Palembang-Indralaya toll road in South Sumatra province, meanwhile, leaves only 12% for completion. Physical construction of the longest toll road in Sumatra, Bakeuheni-Terbanggi Besar (141 KM), has also reached 32% as of last week, lifting optimism for improved connectivity in the resource-rich island.