Menteri Energi dan Sumber Daya Mineral (ESDM), Bahlil Lahadalia, mengesahkan kontrak Wilayah Kerja (WK) Migas Central Andaman yang merupakan wilayah kerja migas pertama yang menerapkan skema gross split baru.
Pelaksana Tugas Direktur Jenderal Minyak dan Gas Bumi Kementerian ESDM Dadan Kusdiana menyampaikan, pengesahan kontrak WK Central Andaman ini merupakan sejarah baru bagi investasi sektor migas di tanah air.
Dadan menyatakan, WK Central Andaman akan dioperasikan oleh Harbour Energy Central Andaman Ltd yang merupakan konsorsium KKKS yang telah melakukan pembayaran bonus tanda tangan sebesar USD300 ribu, serta menyampaikan jaminan pelaksanaan sebesar USD1,5 juta.
Pelaksana Tugas Direktur Jenderal Minyak dan Gas Bumi Kementerian ESDM Dadan Kusdiana menyampaikan, pengesahan kontrak WK Central Andaman ini merupakan sejarah baru bagi investasi sektor migas di tanah air.
Dadan menyatakan, WK Central Andaman akan dioperasikan oleh Harbour Energy Central Andaman Ltd yang merupakan konsorsium KKKS yang telah melakukan pembayaran bonus tanda tangan sebesar USD300 ribu, serta menyampaikan jaminan pelaksanaan sebesar USD1,5 juta.
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TVTranscript
00:00The government, through the Ministry of Energy and Mineral Resources,
00:16re-examined six areas of work for 2024 phase 2,
00:21where of these six areas have a potential of 48 billion barrels of equivalent oil.
00:31The Ministry of Energy and Mineral Resources re-examined six areas of oil and natural gas work,
00:37consisting of five areas of direct supply and one area of regular oil and gas work,
00:43with a potential of 48 billion barrels of equivalent oil.
00:50The five areas of work that will be directly examined are Serpang, Kojo, Binaya,
00:57Gaya Work Area, and Gaya Work Area 2.
01:03Meanwhile, one area of oil and gas work that will be examined regularly
01:06is the Komerin Waterworks Area, with an area of 4,109 square kilometers.
01:14PLT Director General of Oil and Natural Gas, Dadaan Kusdiana,
01:18said there are a total of 11 areas of work offered
01:21to promote oil and gas activities in the water in 2024.
01:29The first area of work is offered with a regular oil and gas mechanism,
01:35namely the Komerin Waterworks Area,
01:38which is located on the land of South Sumatra Province and Lampung Province.
01:45This is done with a regular oil and gas mechanism.
01:50Then for the other five areas of work,
01:53it is offered with a direct supply mechanism.
01:57So there is already a joint study at the beginning.
02:03Dadaan added that it is making a breakthrough in the oil and gas this time
02:07by giving a larger profit or split and a lower bonus requirement.
02:13Where the current profit or split reaches 45% to 50%,
02:18from the previous 15% to 30%.
02:24From Jakarta, Devir Manca, Aidek Channel.
02:33Yes, our topic this time is optimization of gas investment
02:36through the latest growth split scheme.
02:38We have been connected through Zoom with Mr. Mouzy Rizal,
02:41Chairman of the Investment Committee of the National Gas Company or Asper Gas.
02:46Hello, Mr. Mouzy, how are you?
02:48I'm fine, Mr. Prahas.
02:50Thank you for your time.
02:52This is Mr. Komedi Notonegoro,
02:54Director Executive of Reforminer Institute.
02:57Hello, Mr. Komedi, how are you?
02:59I'm fine, Mr. Prahas. How are you?
03:01I'm fine, too. Thank you for your time.
03:03This is Mr. Komedi and Mr. Mouzy.
03:05Before that, we will discuss first from Reforminer Institute.
03:09Your view and review of gas investment climate in Indonesia.
03:14Until now, what stage has it reached?
03:17Mr. Komedi, please.
03:19Yes, from the outside,
03:23the government is trying to make improvements
03:27with various regulatory revisions.
03:30Later, maybe it can be clarified to Mr. Mouzy as an actor.
03:35Of course, I experience it directly.
03:37But from our point of view,
03:40there are various efforts by the government.
03:44Among them, the previous one,
03:46setting the cross-bridge as mandatory,
03:49then in the development, it is optional.
03:51This is what we have been pushing since the beginning.
03:53Because each field or work area has different characteristics
03:57that are not necessarily suitable for one system.
04:01Because the end itself is not how the system is applied,
04:04but how oil and gas can be found and then produced.
04:09Since the beginning, we have actually delivered it.
04:12Of course, it is up to the contractor or K3S to choose which one.
04:17After all, the government is not a fanatic in one system,
04:20but in the end, how oil and gas can be found,
04:25the reserves increase, then the production increases,
04:28the consequences of the follow-up, of course, if everything increases,
04:31it means there is activity, there is investment,
04:33and other indicators.
04:37As long as the cross-bridge becomes optional,
04:40the condition will be better.
04:42Because the contractor will choose.
04:44If it is suitable for the cross-bridge,
04:46they will use it without being forced.
04:49But if they are still suitable or comfortable with the cost recovery model,
04:57the government will give room for it.
05:01Because basically, the money that comes out is K3S's money.
05:06I don't think it's the government's money.
05:09Because the government will replace it after the production.
05:13So it means the government is good enough as a facilitator.
05:17That the main goal is to maximize the country's income,
05:20I think that's a good goal.
05:22But if the country's income is maximized,
05:26then the production is not there,
05:29it will also be zero.
05:31And I think this way of thinking is slow against the government,
05:34which we see from afar,
05:36starting to do the moderate.
05:39It means that when it was previously asked as mandatory,
05:44then the option has been opened for this to be optional,
05:48and some of the requirements requested by K3S
05:51have started to be accommodated.
05:52Maybe not completely,
05:54but it has started to move towards the result
05:57which may later find the optimal DT.
05:59I think that's it.
06:00Interesting, Mr. Komedi.
06:02Mr. Moshi, this is interesting.
06:04The Foreign Management Institute has seen and conveyed
06:07that there is indeed an appreciation that has been given
06:09in the opinion of foreign investors,
06:11or those who are involved in the MIGAS industry abroad
06:15as related to various efforts that have been carried out by the government.
06:18We saw earlier that there was a growth split scheme,
06:20and then the cash recovery,
06:22which is expected to be able to boost the optimization
06:25of the MIGAS lifting in Indonesia.
06:27How do you feel about it?
06:29What is the realization like, Mr. Moshi?
06:32Okay, yes.
06:34We also appreciate the efforts of the government
06:37to improve investment equipment.
06:39We see that there is progress.
06:42But what we see is also quite progressive.
06:46So, it's not as fast as we want.
06:49I agree with Mr. Komedi,
06:52where the choice will always be a preference for K3S.
06:58So, K3S or investors will prefer if there is a choice.
07:05So, for example,
07:07the growth split scheme and cash recovery
07:10have been in Russia for decades.
07:12They can also choose there.
07:15That's what investors prefer.
07:20But we also have to look at the global conditions
07:26because we are competing with other countries.
07:30Meanwhile, we see that the energy transition
07:33is getting longer and longer,
07:35and is being pushed massively
07:38by the government, financial institutions, etc.
07:44This pushes the energy transition quite fast.
07:49And we see an extraordinary change.
07:52Where the IAEA has also mentioned
07:55that the oil demand will probably peak in 2029.
08:02This will affect the investment interest.
08:07So, big investors will look at their portfolios
08:12and they will always choose the easiest,
08:16fastest, monetized portfolios
08:19with much higher upside potential than others.
08:22Why?
08:23Because this industry will shrink more and more.
08:28The demand will also peak.
08:32Why?
08:33Because we can see for ourselves
08:37that the demand in the world is driven by China.
08:44And we can see that the Chinese market
08:47has a very massive electric vehicle penetration.
08:53More than 60% of the car sales there
08:57are either electric vehicle, pure, or plug-in hybrid.
09:02And the demand for oil from China will continue to decline.
09:10And oil accounts for about 10% of global demand.
09:15So, it's extraordinary.
09:16On the other hand, there is now Trump.
09:19He will take office in January,
09:22where he will also push the so-called baby drill.
09:28So, he will push the production of migas in his country.
09:33This will attract investment back to America.
09:39If it goes back to America,
09:42it means that their portfolio abroad will be reduced.
09:46This is also a concern.
09:49So, in this era, it's getting harder to find investors.
09:56And the type of investor has also changed.
10:00The profile of the investor has changed.
10:03So, the government must be able to adjust itself.
10:08Indonesia is not the only one that gives incentives.
10:11Indonesia is not the only one that gives growth plans.
10:14So, we must always look at what our position is like.
10:19How interesting we are compared to others.
10:22We don't need to do surveys.
10:29It doesn't really reflect what we think as an investor.
10:35Investors see it in a simple way.
10:37Is the monetization fast or not?
10:39What is the big upside potential?
10:41No.
10:42And how is the political stability in Indonesia?
10:46Especially regulation and so on.
10:48That's what we see from an investor.
10:51So, we must always be able to compare.
10:55This is good.
10:57This change is good.
10:58The growth rate is added.
11:00But who is this easy for?
11:02The investor or the minister?
11:04Because if, for example,
11:07the minister can give 100% split to the investor,
11:12it's actually possible.
11:14The minister has discretion.
11:18But he won't just give it without a basis.
11:25This regulation is to make it easier for the minister to reach the base.
11:31So, this incentive is actually for the minister, not for the third party.
11:35The third party can ask for it and get it.
11:41For example, if it's needed.
11:45It's interesting to see the government's scheme
11:48for domestic and international investors
11:52related to gas investment in Indonesia.
11:54Is it still sexy enough?
11:56The growth rate that was added.
11:59Can gas recovery be an option?
12:01We'll discuss it in the next segment.
12:03We'll be back after the break.
12:15Thank you for joining us.
12:18We'll continue this discussion
12:20with two interesting guests.
12:22Mr. Komedi Notonegoro,
12:24Executive Director of Reform Miner Institute.
12:26And Mr. Mohsen Reza from Asper Megas.
12:28Mr. Komedi, how do you react
12:33to the reality experienced
12:36by the gas industry players from Asper Megas?
12:41Related to the policies offered
12:43for gas investment in Indonesia.
12:45Mr. Komedi.
12:47Yes.
12:48As Mr. Mohsen said,
12:50we are global.
12:52So, investors are not only in one region,
12:57but also multi-country.
12:59Across regions.
13:01And the choices are diverse.
13:04So, that's one.
13:05The second is the energy transition issue.
13:09What Mr. Mohsen said earlier.
13:13Funding is more difficult for investment.
13:16Because the energy transition
13:18is now using financial institutions.
13:21The policy in the campaign
13:24is now more realistic.
13:26For example, some financial institutions
13:28have been asked not to fund
13:31new fossil fuel projects.
13:33But they can fund ongoing projects.
13:36So, the choices are limited.
13:39Okay.
13:40Looking at the global,
13:42in 2023,
13:44if it's the end of the year,
13:46for Ulu Megas Global investment,
13:49around 47% is in the US.
13:52Around 37% is in North America.
13:55This is also indicated by an indicator.
13:58For example, now America is stocked.
14:01The oil is overflowing from the usual.
14:04The production has surpassed Saudi Arabia.
14:06So, now it's around Rp15.20 million per day.
14:11So, in the past, they were importers.
14:14Now it's the other way around.
14:15As exporters,
14:17the market will also be affected
14:20by large oil stocks.
14:23It depends on whether the energy transition
14:26is in line with the plan or not.
14:28This will be the key to whether
14:30this sector will still grow in the long term or not.
14:34Trump's choice,
14:36with the choice of the Energy Minister
14:38in the United States,
14:40which is also based on fossil fuels,
14:41may change the overall constellation,
14:45including its investment.
14:46It can give positive news,
14:48but also the opposite.
14:50If they then boost their investment
14:52and make it easier,
14:54the portion of 47% I mentioned earlier,
14:5737% is in North America,
14:59it can increase.
15:00It means that,
15:01because we are talking about the global market,
15:03the Pacific market is also interested.
15:05Moreover, if we look at the reserves in the Pacific,
15:08the total is only around 2.5%.
15:13It means that we don't reach 3%
15:16of the global total reserves.
15:18But our consumption is big.
15:20Our consumption is up to 40% of global consumption.
15:23It means that the Pacific is a market,
15:25but if our reserves are relative,
15:28it's not that big.
15:30For example, in Kazakhstan.
15:32In Kazakhstan, there is a field
15:34with a reserve of 8 billion to 7 billion oil.
15:37Meanwhile, Indonesia,
15:39the total from Sabang to Marocco,
15:41is only 2.4%.
15:44So, the whole region is only 2.4%.
15:46Meanwhile, in other countries,
15:48there is a field of 8 billion.
15:51So, we can reduce the scale.
15:53It means that,
15:54if we compare to another,
15:56it means that we are quite far.
15:58But if we compare it to the Pacific region,
16:01we are still in the top 3.
16:03Maybe we are still better than Malaysia,
16:06better than some countries.
16:08But if we talk about the Pacific.
16:10But if we talk about the global,
16:12it's different.
16:13Meanwhile, the investor is global.
16:16So, if we look at the big players,
16:18for example, there is Exxon,
16:20there is BP,
16:21there is Chevron in Indonesia.
16:23For example,
16:24they also have portfolios in other countries.
16:26So, it confirms what you said.
16:29If, for example,
16:31if we talk about Chevron's IDD at that time,
16:34they negotiated with additional incentives
16:37or certain dividends
16:39to compete with their portfolios in other countries.
16:42Because they have it in a number of countries.
16:44Okay.
16:45So, in the ranking,
16:46the scale of Indonesia,
16:47let's say it needs a value of 10,
16:49it's still 8.
16:50They asked for 2
16:51to be equal to Africa.
16:53But if we don't want to add that,
16:56they will leave it.
16:58It will pull out from Indonesia.
17:00And that's what some big players do.
17:02Then they choose portfolios in other places.
17:05If you ask,
17:06there is still Exxon that survives,
17:08there is still BP that survives,
17:10they survive because there is an existing portfolio.
17:13So, we have to look at it more clearly,
17:16more objective.
17:17Why do they want to stay in Indonesia?
17:20Why do they leave and so on?
17:22If investors,
17:23actually,
17:24whoever it is,
17:25maybe it can be asked to you later too,
17:28the main reason is margin.
17:30When they get a margin that is worth it,
17:33not maximal or as big as it is,
17:35no,
17:36they are enough to drive a certain IRR.
17:38Why is it driven in a certain way?
17:40So that they can run,
17:42they can do capital recovery
17:44if they invest from loans,
17:46then they can pay for labor,
17:48it's worth it.
17:49But if not,
17:50then the decision will go to another place
17:53in the same sector,
17:55or then leave this sector
17:57to choose a new sector,
17:59which is considered to be more profitable
18:02or more likely to get profit.
18:04That's right.
18:05I think the government often needs to sit together.
18:09What is it actually that is demanded by investors?
18:12Then what are the obstacles?
18:14The government is enough as a facilitator,
18:17to listen,
18:18then provide facilities,
18:20if the fiscal and non-fiscal aspects make it possible.
18:23Okay.
18:24That's from Reform Minor Institute.
18:26From your own business,
18:27what do you see as the bottleneck
18:29that may need to be broken soon?
18:31So that we can sit together,
18:33with a cool head,
18:34we can break it from the investment side,
18:36then how can we monetize as soon as possible,
18:38related to the fields,
18:40or the area where our MIGAS works?
18:44So,
18:45I don't mean a progressive change,
18:49but a reformative change,
18:52according to the name of the institute,
18:55Reform Minor,
18:56a reform.
18:57So it really has to be a reform.
18:59It can't just be progressive.
19:01Finally, there is this incentive.
19:03We've been doing this for years.
19:05Yesterday, Mr. Loh Kutu said there were 11 items
19:11that are still pending for the incentive and easing issue,
19:15and so on.
19:16We've discussed those 11 items
19:18more than 10 years ago.
19:20It's not something new either.
19:23This has to be done faster,
19:24and we really have to have a leader
19:28who is brave enough to change it
19:32not in a progressive way,
19:34but in a reformative way.
19:35We really need a reform.
19:38Why?
19:39We've lost a lot of time.
19:41The 15-year-old problem hasn't been solved yet.
19:44It's been more than 15 years.
19:45It hasn't been solved yet.
19:47Imagine.
19:48Meanwhile,
19:49this gas has extraordinary potential.
19:52America really enjoys it.
19:54Ukraine,
19:55because of their increase in LNG sales to Europe,
20:00is extraordinary.
20:01That's something we can actually catch.
20:04Because Europe is extraordinary.
20:06Last year, I talked to the EU ambassador.
20:11They are really looking for LNG
20:14from all over the world.
20:17Because they need it.
20:19Especially now that summer is coming.
20:22Winter is coming.
20:25The demand for LNG will be extraordinary.
20:28That's something we missed.
20:30Why?
20:31Because our production is stuck.
20:35Secondly,
20:36we also have to look at our costs.
20:40Our production costs are more expensive than others.
20:44Our LNG is extraordinarily expensive
20:48compared to, for example,
20:49our competition with Qatar,
20:51with America,
20:52with Saudi Arabia,
20:54who have also started selling LNG.
20:56They are extraordinarily cheap.
20:58What can we learn from that?
21:00How can we reduce our costs
21:04so that we can be more competitive abroad?
21:07Our LNG production is stuck
21:10not because our budget is small.
21:12Our budget is extraordinarily big.
21:14Why is it stuck?
21:15Because the buyers like to be there and not be there.
21:21Why?
21:22Because our LNG is priced at an expensive price.
21:28Why is it expensive?
21:29Because the production is expensive.
21:30That also has to be solved by the government.
21:32So, it's not just about giving incentives here and there.
21:37But if, for example,
21:39there are no buyers,
21:41the infrastructure is not developed,
21:44so our production costs are high, etc.
21:47That will also be a hindrance.
21:51Our domestic demand in Indonesia is also stagnant.
21:59Even though 60% of our LNG is domestic.
22:07But because of the lack of infrastructure in the country,
22:12our demand is stagnant.
22:15So, if we can't sell it abroad,
22:18at least the gas is suitable to be used in the country.
22:22This can increase our energy independence,
22:25energy security, etc.
22:28Mr. Moshi, if we talk about reformation,
22:31what policy do you say?
22:34And which part should be done
22:36if this can be one of the boosters
22:39for the rational investment of our gas,
22:42from Hulu in Indonesia?
22:45It's simple.
22:47If we talk about it,
22:49I've always said it since last year.
22:52It's simple.
22:54K3S is the name of a contractor.
22:58It's simple and doesn't need a fiscal incentive,
23:02but it makes it easier for K3S to operate,
23:06and this also increases the interest in investment.
23:09Why? Because it will be easier in Indonesia.
23:12What is that?
23:13Permission, land liberation, etc.
23:16That's an amazing incentive,
23:20and we, the government, don't need to spend money,
23:24don't need to give incentives.
23:27K3S is a contractor.
23:29A contractor shouldn't be in charge of permission or land liberation.
23:33It's the same as when we build a house,
23:35I always use an analogy,
23:37we build a house, we rent it to a contractor,
23:39the permission and land liberation belongs to the owner,
23:42not the contractor that we ask to liberate the land.
23:46That's what the government should do.
23:49It shouldn't be K3S or anyone else in charge of permission.
23:52And this has happened before,
23:54it's not something new in Indonesia.
23:56A long time ago,
24:00investors had to work with the government.
24:05Who is in charge of permission, who is in charge of land liberation?
24:07The government.
24:08Everything is done.
24:10Investors who have technology,
24:12who have capital, etc.
24:14They just need to sit down,
24:16everything is ready, we go in,
24:18all the technical things are taken care of,
24:20and it's very effective.
24:22That's what needs to be reformed.
24:26That's one.
24:27The second is the field ideal.
24:29Our ideal field is thousands of square kilometers.
24:34Tens of thousands of square kilometers,
24:36our field is ideal.
24:38So,
24:39I'm not that fond of hearing the word ideal well.
24:44By the way, it's like we're talking about small things.
24:46This is an ideal field.
24:48A truly ideal field.
24:50And that's amazing.
24:52Tens of thousands,
24:54tens of thousands of square kilometers,
24:56that's ideal.
24:57And the potential is still big,
24:59the data is still a lot,
25:01and the possibility is still,
25:03almost all of it is onshore,
25:05so it's easy.
25:07And it can be offered back to the investor.
25:12So, the problem with that field,
25:14is under the name of Pertamina.
25:17Because in the past, all the fields,
25:19in the year 2001,
25:21the new U.N. law,
25:23all the fields that were dominated by foreigners,
25:26are under the name of Pertamina.
25:28Many of them are ideal.
25:30It can be used if Pertamina wants to return to the government,
25:35to be offered as a PSC contract.
25:38Not KAISO,
25:39not ideal well,
25:40not ideal field,
25:41but a PSC contract.
25:43I think that will be much more effective.
25:47Okay.
25:48It looks like you have to sit together,
25:50Mr. Mose, Mr. Komedi,
25:52between government officials, businessmen,
25:54to summarize again,
25:55what kind of scheme is suitable,
25:57if Mr. Mose has emphasized,
25:59the important thing is how easy the permit is,
26:01then how the existing ideal fields can be offered,
26:05can be cooperated with,
26:07so that it becomes another way in.
26:09Even though, in terms of capitalization,
26:11they have prepared,
26:12they have brought the technology.
26:14Okay, unfortunately, the time is limited.
26:15Mr. Mose, Mr. Komedi,
26:16thank you very much for the time,
26:18insights and information,
26:19as well as the updates that you have delivered,
26:21to the audience today.
26:23Congratulations on continuing your activities again.
26:25Mr. Mose, Mr. Komedi,
26:26see you again.
26:27Stay healthy.
26:29Thank you, Mr. Komedi.
26:30Thank you, Mr. Mose.
26:31Stay healthy.
26:32All right, audience, it's been an hour.
26:33I accompany you in the market review,
26:35and continue to share your information,
26:37only on IDX channel.
26:38With trustworthy and comprehensive investment reference.
26:40Because of business,
26:41the future must be ahead.
26:43I am Investor Sahab.
26:44Yes, I am Prasetya Wibowo,
26:46along with all the staff,
26:48who are on duty.
26:49Goodbye.
26:51See you.