Infrastructure Journal: JORR-2
National media reported about a small incident in the execution of court decision related to land acquisition for section II of the long-delayed Cinere-Jagorawi (Cijago) toll road yesterday. This is the last piece of land acquisition for the section implicating 10 plots of land in Sukmajaya, Depok, West Java. The plots were executed after the court rejecting demands from landowners for Rp33 million per square meter, way above market value (independent valuers pointed to between Rp2.9 million and Rp17 million per square meter).
Government Ready to Promulgate the Latest Amendment to the Regulation on the Mineral and Coal Mining Business
The Government of Indonesia has been working on revising the regulation on mineral and coal mining business so as to address matters concerning soon-to-be-expired coal contract of work (PKP2B). Indonesia’s Ministry of Energy and Mineral Resources (ESDM) recently told the press that the revised regulation has passed the stage of harmonization (cross-checking with existing laws and regulations). The draft has been forwarded to the State Secretary, after which it will go to President Joko Widodo for signing.
EV Market & Indonesian Nickel (3)
High-ranking government officers in Indonesia are determined to accelerate development of electric vehicle (EV) market in the country to prevent bigger deficit in oil and gas trading. Some companies, meanwhile, have geared up efforts to develop nickel processing facilities for EV batteries in the country.
Renewable Energy Projects Lack Funds
The Ministry of Energy and Mineral Resources (ESDM) is working towards diversifying energy sources in its move towards meeting the 35,000 MW electrification target. The Ministry is putting a lot of importance in renewable energy, which has not been optimally tapped. Funding seems to be one of the main reasons why we have yet to see more renewable energy projects coming to light.
Keppel + Metropolitan Land (2)
Keppel Land Limited, subsidiary of Keppel Corporation Ltd, has through Keppel Land (Indonesia) Pte Ltd signed a non-binding general collaboration argeement with PT Metropolitan Land Tbk (MTLA) for the development of residential projects owned and occupied by MTLA in Greater Jakarta with estimated investment of up to Rp5 trillion.
Riau Seeks 10 Percent of Rokan
Ever since the government awarded Rokan Block to state-owned PT Pertamina, the Regional Government of the Province of Riau has been asking for their share of 10 percent participating interest. Riau is eager to get their share for they said that they had yet to enjoy a fair share ever since Chevron began to manage Rokan in 1971.
Freeport Divestment Update
The divestment of PT Freeport Indonesia’s 51 percent shares is almost complete. At the moment, the The Ministry of Energy and Mineral Resources (ESDM) is in the process of discussing a definitive mining license (IUPK) with Freeport and PT Indonesia Asahan Aluminium (INALUM).
Illegal Mines
The Corruption Eradication Commission (KPK) has repeated mentioned regional-government-issued mining licenses (IUP) as a locus of corruption. Recently, KPK Deputy Chief Laode M. Syarief told the press that there were many illegal mines in the region, and that they’re protected by armed officials, be it from the police or the military. Laode said so on the sidelines of an event held in the Bidakara Hotel yesterday (Dec. 4).
Energy Equity Epic’s Contract on Sengkang Block Extended?
The Ministry of Energy and Mineral Resources (ESDM) have shown signs that it would extend the contract of Energy Equity Epic (Sengkang) Pty. Ltd (a subsidiary of Hong-Kong-based Energy World Corporation or EWC) on the management of the Sengkang Block (which is due to expire on October 24, 2022). EWC is willing to pay a signing bonus of US$ 12 million and to provide a five-year firm commitment fund (KKP) of US$ 88 million.
New SKK Migas Boss Promises Progress on Masela and IDD
The New Head of the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) is Dwi Soetjipto. This confirms our previous report on the rumors of his name being mentioned as a potential. Dwi has experience in the oil and gas sector for he was the President Director of PT Pertamina. The Ministry of Energy and Mineral Resources (ESDM) has put a lot of expectations on his shoulder, particularly with the work on increasing national oil production target, so the Vice Minister of ESDM Arcandra Tahar told us on Dec. 3.