Author: Sinta Nur Diana *
In the era of President Joko Widodo’s domestic oil and gas industry became more independent. Pertamina as a state company has experienced an increase in its position and production capacity. Even the oil and gas sector is currently controlled by Pertamina, a situation that has never happened in the past President’s leadership. President Jokowi’s government has so far not only been able to take over oil and gas blocks which were previously controlled by foreigners but also able to increase oil and gas production.
Oil and gas production of PT. Pertamina (Persero) since the beginning of January to July 2018 has managed to increase by around 30%. The production is contributed by existing oil and gas blocks at home and abroad. As of July 2018, oil and gas production has reached 907 thousand barrels of oil equivalent (BOE). In fact, the same period last year was only 693 thousand BOE. Pertamina’s figures above outperformed other contractors, including Chevron Pacific Ind with of 27% EMCL 15%, CNOOC SES Ltd 4%, Conoco Philips Ind Ltd / Medco Natuna 2%, and Total E & P Indonesia 0%.
Before controlling the Mahakam Block, Pertamina only controlled around 15% of domestic oil and gas production, on fields managed by Pertamina EP and Pertamina Hulu Energi (PHE) ONWJ, and the Joint Operation Agency (BOB) of PT Bumi Siak Pusako-Pertamina Hulu. After taking over the Mahakam Block from Total (France) and INPEX (Japan), as of April 30, 2018, Pertamina has controlled the national oil and gas production by 20%, or around 162,000 .
The Jokowi government quickly accelerated Pertamina’s contribution. The Indonesian government through the Ministry of Energy and Mineral Resources (ESDM) gave 10 termination blocks to Pertamina. A rough calculation from the CNBC Indonesia research team, Pertamina received an additional production of around 110,000 from the 10 blocks. Thus, oil and gas mastery of 20% was quickly boosted almost doubled to 36%.
At the end of July 2018, we were surprised by the decision of the government of President Jokowi to give control of the Rokan Block to Pertamina after 2021, for the next 20 years. The CPI contract in the Rokan Block will indeed expire in 2021. Even when he was shocked, Amien Rais, who had previously challenged Jokowi, related this matter, until it disappeared. The government, through the Minister of Energy and Mineral Resources, stipulates that the management of the Rokan block starting in 2021 for the next 20 years will be given to Pertamina.
When this block is controlled by Pertamina, the company’s oil production will increase dramatically to around 485,000 , or contribute around 60% to national crude oil production. With this amount, Pertamina is now officially the majority shareholder in the domestic oil and gas field.
This condition has surpassed world oil companies, even in the future it is predicted that it will be equal to foreign companies which have so far controlled national oil production. One of the causes of increasing oil and gas production from PT. Pertamina is the acquisition of domestic and foreign assets. The increase in oil production capacity above was contributed by production from JOB, BOB and the Cepu Block.
Admittedly, this increase achieved by Pertamina provided tremendous optimism. In addition, it also emphasizes that national oil needs can be produced, managed and fulfilled by domestic subsidiaries. This continued in the future will encourage the existence of energy sovereignty for Indonesia. Jokowi is known as the President with a strong commitment to energy because he sees that Indonesia is a rich country. The increase in Pertamina’s production is the result of a President’s real work for the realization of a strong and independent nation and not dependent on foreigners.
*) Students of Merdeka University Malang