JAKARTA (TheInsiderStories) - President Joko Widodo and Japan’s Prime Minister Sinzo Abe will witnessing the bilateral agreement on Patimban Deep Sea Port, Masela Oil & Gas project and loan financing with Japan International Cooperation Agency (JICA), said the senior Minister on Monday. Abe will visited Indonesia next week to discuss more the relationship between the two countries with Widodo.
“We will finalize all about Patimban tomorrow including wich Japanese companies are in. Inpex itself orally is okay with the energy & resources mineral ministry,” He said at the gathering with journalists.
Coordinating Minister for Maritim Luhut Binsar Panjaitan said, government has decided state-owned port operator PT Pelabuhan Indonesia (Pelindo) II joined with PT Astra Internasional Tbk (IDX: ASII) or Mitsubishi Corporation to develop Patimban port. The project is estimating need costs Rp40 trillion.
According to Chief executive Pelindo II Elvyn Masassasya, the company will own 51 percent in the joint venture company with Japan’s partner. The project is expecting start to develop in the fourth quarter of 2017 and will operate in 2019.
Explained on Masela block, Luhut admitted, government got a deal with Inpex corporation to extended the contract seven years and must produce gas 448 MMBTU and secured the off taker of the gas products. Indonesia also asked Inpex commitment to build LNG and petrochemical plant that estimating to bring investment ip to US$16 billion in the coming years.
Beside two projects, fast train from Jakarta to Surabaya are also scheduled to be discussed at the meeting is planned to take place in Bogor Palace.
“For Jakarta-Surabaya fast train project, there are a few pending items” said Luhut.
Indonesian and Japanese relations were disrupted when China won the bid for the train at medium speed of Jakarta - Bandung. It is expected with this agreement the relationship between the two countries will recover.