Further Development of Tourism Industry
Indonesia welcomed 14.39 million visits of foreign tourist in Jan-Nov 2018, an increase of 11.63% from the corresponding period of 2017. The country might have missed its full year target of 17 million visits, but given series of natural disasters (earthquakes in Lombok, tsunami in Palu & Donggala, tsunami in the Sunda Strait), 2018 was still a decent year.
Arcandra to the Defense of Pertamina’s Mahakam
The Mahakam Block in East Kalimantan is under the management of PT Pertamina. The Block’s transition from Total E&P to Pertamina has since been a topic of conversations. Recently there was a claim that the Mahakam Block’s oil and gas production has since experienced a steep decline under Pertamina. The Vice Minister of Energy and Mineral Resources (ESDM) Arcandra Tahar begged to differ.
The Fast Growing EV Market
Some experts believe price parity between electric vehicles (EVs) and cars with internal combustion engines (ICEs) will only be achieved by 2030. Others, however, expect sooner, say in 2025 with fast growing volume of EV in two of the world’s largest automotive market: USA and China.
A Conversation With BUMN’s Fajar Harry Sampoerno
PT Indonesia Asahan Aluminium (INALUM)’s acquisition of 51 percent of PT Freeport Indonesia (PTFI) gained renewed scrutiny after Freeport-McMoRan (FCX) noted the following in a press release: “ The arrangements provide for FCX and the pre-transaction PT-FI shareholders to retain the economics of the revenue and cost sharing arrangements under the Joint Venture. As a result, FCX’s economic interest in PT-FI is expected to approximate 81.28 percent through 2022. FCX will continue to manage the operations of PT-FI.”
Rokan Block Update
PT Pertamina’s contract on the Rokan Block has not been signed. The Ministry of Energy and Mineral Resources (ESDM) had promised to finalize the signing by the end of 2018, that didn’t happen. The Head of ESDM’s Public Relations Agung Pribadi told yosefardi.com that the signing simply has not been scheduled. “It won’t be long, we are still busy with the start of the new year. (Matters concerning) the Rokan Block won’t take long. Just wait for it. Remember that the contract follows the gross split arrangement now,” Agung explained earlier today (Jan. 4).
INALUM Ready To Buy Vale Indonesia’s Shares
After acquiring 51 percent of PT Freeport Indonesia, PT Indonesia Asahan Aluminium (INALUM) has set another big target: acquiring 20 percent of the shares of PT Vale Indonesia.
The IDD Project Update
The Indonesia Deepwater Development (IDD) gas project has not seen progress despite having been worked on since the years of President Susilo Bambang Yudhoyono. The Government of Joko “Jokowi” Widodo have been meaning to expedite the process, but that has not happened. Chevron Pacific Indonesia’s IDD Project is still stuck on the Plan of Development (POD) review stage.
The Ministry of Environment and Forestry Post Freeport Divestment
Soon after the conclusion of the divestment of PT Freeport Indonesia’s 51 percent of shares to PT Indonesia Asahan Alumina (INALUM) news emerged noting the outcome as a success, but not everyone was happy. Some people have criticized the Government’s approach. The believe that the Government had accommodated Freeport on too many occasions, one of which was the Government’s handling of Freeport Indonesia’s tailing management issue.
Energy Equity Sengkang’s Thoughts on Its Future
Energy Equity Epic (Sengkang) Pty. Ltd (a subsidiary of Hong-Kong-based Energy World Corporation or EWC) has bagged the approval of the Ministry of Energy and Mineral Resources (ESDM) for an extension of its contract in the Sengkang Block, South Sulawesi. The Company, however, appears pessimistic that it would be able to meet its production target this year.
KLHK
The Ministry of Environment and Forestry has won their lawsuit against PT National Sago Prima. The Company must pay for the ecological damages caused by the forest fire in 2014 in the Meranti Islands of the Province of Riau. The Supreme Court (MA) made the ruling on December 17, 2018, but the details on their decision has not yet been published.