Indonesian President Joko Widodo handed over the Plan of Development (PoD) of Masela Block Oil and Gas Project in Tanimbar Islands, Maluku Province to Japan' Inpex Corporation and British' Shell at Merdeka Palace, Jakarta, on Tuesday (07/16) - Photo by MEMR Office

JAKARTA (TheInsiderStories) – Indonesian President Joko Widodo handed over the Plan of Development (PoD) of Masela Block Oil and Gas Project in Tanimbar Islands, Maluku Province to Japan’ Inpex Corporation and British’ Shell at Merdeka Palace, Jakarta, on Tuesday (07/16).

INPEX delegation led by its CEO Takayuki Ueda was accompanied by Minister of Energy and Mineral Resources  (MEMR) Ignasius Jonan and the Head of the Special Task Force for Upstream Oil and Gas Business Activities Dwi Soetjipto.

“We give report to President that the government’s approval to Masela Block construction has been given. We report and submit the agreement in front of President,” Jonan said after the meeting.

While, Soetjipto says President welcomed the large-value investment. The project will be very meaningful for Indonesia, he added.

“President expected that Inpex will commit to what has been stated in PoD and what is required by the ministry,” he said.

In addition, President Widodo also wants Inpex to maximize the local content in this project as recruit as many local workers as possible.

“So there will be trainings to improve local human resources,” he said.

Is Known, Revision of PoD reported to Widodo was a follow-up the Head of Agreement (HoA) signing on June 16, in Tokyo, Japan. The next step Masela Block development is Final Investment Decision (FID).

Ueda welcomed to PoD revision process. He hopes that this project can last until 2055.

“I think this project is very good for the company, but it will also contribute greatly to Indonesian economy,” Ueda said.

He added Inpex is committed to carrying out what was agreed upon in PoD, including related local content and use the native labor in the local area. He believes, this project will also have a multiplier effect on the Indonesian economy.

“I give an example, The project will have an impact of around US $ 153 billion which will be added to Indonesia’s GDP at the end of the project if the project lasts until 2055. It will also contribute to employment in this country. In relation to multiple effects, this project will create around 73,000 employment, “he explained.

Written by Willy Matrona, Email: theinsiderstories@gmail.com

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