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Indonesia energy ministry projects investment in oil-gas infrastructure to reach $142.4 bln in 2016

JAKARTA ( – The Energy and Mineral Resources Ministry on Monday (Nov 9) unveiled its major investment and development projects in the 2016, with investment in oil and gas infrastructure is estimated to reach Rp1,947 trillion ($142.4 billion). The ministry however gave no comparison figures.

These projects will include the development of gas network – transmission and distribution pipelines in Surabaya, Prabumulih, tarakan, Balikpapan and Batam; transmission pipeline for gas network; FEED (front-end engineering and design) and DEDC gas network in East Kalimantan and South Sumatera; gas facilities and gas for transportation projects and distribution converter kit for farmers and cars.

In addition, portion of the investments will go to the planned development of LNG and LCNG (liquefied and compressed natural gas) (multi-years project 2016-2018; the construction of LPG storage tank with total capacity of 600 MT (multi years project 2016-2018); and the construction of fuel storage tanks with capacity of 96,500 MT – multi-years 2016-2018.

“Realizing that energy and mineral resources are capital for development and the driver of economic growth, all level of the energy and mineral resources ministry will continue to work hard to reorganize the management of the sector from upstream to downstream,” the ministry said in a published announcement.

The reorganization and improved will include exploration, production, diversification and energy conservation as part of the drive to reach security in energy and mineral resource industry. Various internal steps have also been taken including executive re-positioning (502 executives), deploying 1,100 energy cadres across the nation, deploying energy patriots in 33 in border areas and simplifying permits by up to 60 percent.

“The other efforts are to speed up the realization of the 2016 Stater Budget,” the ministry said.

It said the preparation to realize the budget has been fast-forward by 7 months. This means project tenders will be held in advanced then in previous years.

The energy ministry’s total 2016 budget has been set at Rp8.56 trillion, which comprises of Rp4.329 trillion for goods purchase expenditure, capital expenditure Rp2.463 trillion, route expenditure for staffs at Rp834.5 billion and reserves Rp756.7 billion.

Expenditure allocation for infrastructure is set at Rp4.53 trillion, comprises of budget for oil and gas infrastructure at Rp1.947 trillion, new and renewable energy (EBTKE) at Rp1.813 trillion, geologi at Rp99.08 billion and output reserves for new infrastructure at the directorate general for oil and gas at Rp672.5 billion. (*)


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