4 Years of Jokowi-JK Government, 50 Years of Oil and Gas Blocks and Freeport Owned by Foreigners are Back to State Ownership
CIDISS. The Jokowi-JK Government focuses on restoring State assets managed by foreign parties to the government’s efforts to strengthen national economic resilience and energy security. Among them the government took over large oil and gas (oil and gas) producing blocks from foreign companies after the period of their contracts expired to PT Pertamina (Persero), as well as the Divestment of Freeport Shares, which were mostly managed by American companies.
Quoted from the four-year report of the Government of President Joko Widodo (Jokowi), Monday (10/22/2018), the large oil and gas block transferred to Pertamina is the Mahakam Block. Previously the block was managed by French oil and gas company Total E & P Indonesia for 50 years. The government then decided that the Mahakam Block would be managed by Pertamina from 1 January 2018, after the Total E & P contract expired in late 2017. Mahakam Block is the second largest gas producer in Indonesia, based on data from the Special Task Force for Upstream Oil and Gas Activities (SKK Migas) in Semester I 2018 gas production from the block managed by Pertamina Hulu Mahakam reached 916 MMSCFD.
Next there is the Rokan Block, after 50 years managed by a company from the United States, namely PT Chevron Pacific Indonesia, finally the management of the Rokan Block in Riau returns to the motherland’s lap. Starting in 2021, the Indonesian government appoints PT Pertamina (persero) to manage the block which has an area of 6,220 The kilometer. Recorded, since operating in 1971 until December 31, 2017, oil production in the Rokan Block has reached 11.5 billion barrels. The Rokan Block currently has oil reserves of 500 million to 1.5 billion barrels of oil equivalent without using Enhance Oil Recovery or EOR.
President Jokowi targets that by 2021 the government through Pertamina can control 60% of National Oil and Gas Production, one of the steps the Government has to reduce fuel subsidies, with the fulfillment of Indonesia’s National Oil and Gas quota no longer need to import, so as to reduce subsidies on Oil and Gas, especially Oil Fuel such as Premium and Solar.
In the Mining Sector, Jokowi managed to take a majority stake in the Grasberg Mine in Papua, owned by Freeport McMoran, a mining company from the United States (US). After tough negotiations that lasted for years, the government finally managed to take over 51% of Freeport Indonesia’s shares. Not only that, Jokowi also mentioned that the government with the support of the Indonesian people had succeeded in becoming the owner of the oil and gas block that had been in foreign hand.
By: Rikky, S *)
