JAKARTA (TheInsiderStories) – Indonesia’ Ministry of Energy and Mineral Resources (MEMR) targets investment in the energy sectors at least US$33.4 billion in 2019. The minister Ignasius Jonan said last week, that the number is still moving waiting the final data.
The Head of the Special Task Force for Upstream Oil and Gas Business Activities Dwi Sutjipto detailed, that the investment in the upstream oil and gas sector could be reached $14.7 billion in this year. A year ago the amount $11.9 billion.
He added, various efforts will be made by the agency to reached the target. Sutjipto revealed, the body also focus to encourage the Enhance Oil Recovery (EOR) project like Rokan block and several other blocks in 2019, which will attract a considerable investment.
“Preparation of the EOR project and the existing development projects, and how we can work together with the production sharing contract (PSC) that will help the production lifting,” he said.
Moreover, the director general for oil and gas at MEMR, Djoko Siswanto explained, that producers such as Italian ENI s.p.A, had stated their commitment to invest in the Merakes Block of $1.3 billion. Then, the development of the gas processing infrastructure of Tangguh Train 3 is also still proceeding during 2019.
“There is also a development project for Jimbaran Tiung Biru amounting to $1.6 billion. Of these three, it has also been large,” he stated.
In the mineral and coal sector there is no detailed data on investment targets in 2019. But according to the director general Bambang Gatot Ariyono, the 2019 investment will begin to rise along with the development of underground mines conducted by PT Freeport Indonesia.
Several smelter projects undertaken by state-owned miners such as PT Aneka Tambang Tbk (IDX: ANTM) and PT Indonesia Asahan Inalum will also begin in 2019.
Based on the ministry data, the realization of investment recorded $32 billion in 2018, most contributed by oil and gas sector worth of $12.3 billion dollars. Others comes from minerals and coal $6.8 billion, electricity $11.3 billion, and renewable energy $1.6 billion.
In the periods the most consistent decline occurred in the oil and gas sector. In 2014, the investment recorded $21.7 billion, 2015 worth of $17.9 billion, 2016 amounting of $12,7 billion and 2017 reached $11 billion.
Written by Daniel Deha, Email: email@example.com