21 July 3August 2018 - Publication PYC · operate Rokan from Aug. 8, 2021 to 2041, under a gross split production sharing contract. • Crude oil lifting by Chevron unit Chevron Pacific

www.publication-pyc.org

21 July – 3 August

2018

Renewable Energy

Indonesia extends 20% biodiesel blending to non-subsidy

diesel amid depreciating rupiah

Source:

• https://www.spglobal.com/platts/en/market-insights/latest-

news/agriculture/080118-indonesia-extends-20-biodiesel-blending-to-non-

subsidy-diesel-amid-depreciating-rupiah

• https://punchng.com/indonesiall-expand-biofuel-mandate-to-railways-power-

plants/

• Indonesia plans to expand the use of B20

-- 20% biodiesel blended into regular

diesel -- to include non-Public Service

Obligation demand.• "We [will] start by extending B20 to non-PSO

first, which will boost consumption of B20and hence, reduce gasoil imports," economycoordinating minister Darmin Nasution said.

• In addition to expanding B20 to all transportand industrial sectors, Indonesia also plans topush forward the implementation of B30 to2019, from the original target of 2020. Thismay be implemented for either PSO only, orinclude non-PSO as well

• The government estimates B30 consumptionto reach 8.8 million kl in 2019. However, ifB20 was made mandatory for both PSO andnon-PSO consumption, the volume wasexpected to reach 5.9 million kl.

https://katadata.co.id/

August 1, 2018

Indonesia needs 'dollars now', says president urging

greater biodiesel use

Source:

• https://energy.economictimes.indiatimes.com/news/renewable/indonesia-

needs-dollars-now-says-president-urging-greater-biodiesel-use/65209418

• Indonesia's president on Tuesday urged hisministers to make "serious" efforts tostrengthen foreign exchange reserves bywidening biodiesel use to combat pressurescaused by a global trade war.

• He sought immediate implementation of agovernment's plan to widen the mandatoryuse of B20 biodiesel to all diesel vehicles,including locomotive engines and heavyequipment.

• Biodiesel can cut fuel costs and reduceemissions, but some varieties need specialhandling and equipment as the fuel has asolvent effect, corroding engine seals andgasket materials, and it can solidify in thecold.

• Indonesia's auto industries group, GAIKINDO,has said stepping up biodiesel blends canincrease fuel consumption and could causeengines to overheat.

http://energy.economictimes.indiatimes.com

July 31, 2018

Indonesia, Malaysia will join hands to fight EU move

against palm oil

Source:

• https://www.straitstimes.com/asia/se-asia/indonesia-malaysia-will-join-hands-

to-fight-eu-move-against-palm-oil

• Indonesia and Malaysia, the world's twolargest palm oil producers and exporters, willwork together to counter the EuropeanUnion's move to phase out the use of thebiofuel in transport fuels, their foreignministers said.

• While non-government organisations andindustries of other vegetable oils have ledcampaigns against palm oil in the past, nowparliaments and governments are doing thesame, with the most notable being the EUmeasure to phase out palm oil use in cars.

• The EU agreed last month to increaserenewable energy use by, among otherthings, cutting out the use of palm oil asbiodiesel from 2030.

• In a joint statement after the meeting, MrSaifuddin said that as Indonesia and Malaysiasupply 80 per cent of palm oil globally, theymust be united and enhance collaborationagainst trade barriers.

July 24, 2018

Star Energy to continue geothermal expansion both in

Indonesia and abroad

Source:

• http://www.thinkgeoenergy.com/star-energy-to-continue-geothermal-expansion-

both-in-indonesia-and-abroad/

• Following its acquisition by PT Barito Pacific,Star Energy plans to continue expansion plansat its geothermal plants in Indonesia, as wellas expansion of greenfield development inIndonesia and abroad.

• Star Energy will continue its plannedexpansion on its operating assets:

– 377 MW Salak (planned expansion to 447 MW by2023)

– 271 MW Darajat and– 227-MW Wayang Windu (planned expansion to 287

by 2024)

• Furthermore, the company plans to developtwo greenfield resources in Hamiding Islandand South Sekincau, which are in explorationstage. Both sites are said to hold significantgeothermal resources.

July 31, 2018

Oil and Gas

Indonesia's Pertamina to take over Chevron's Rokan block

in 2021

Source:

• https://www.reuters.com/article/us-chevron-indonesia-rokan/indonesias-

pertamina-to-take-over-chevrons-rokan-block-in-2021-idUSKBN1KL2B6

• Indonesia has decided Pertamina will takeover operation of the Rokan oil block, thecountry’s second-biggest crude producingfield, once Chevron’s operating contract thereexpires in 2021, Deputy Energy MinisterArcandra Tahar said.

• A proposal made by Chevron for an extensionof its contract after 2021 was “far below” anoffer made by Pertamina.

• State-owned energy company Pertamina willoperate Rokan from Aug. 8, 2021 to 2041,under a gross split production sharingcontract.

• Crude oil lifting by Chevron unit ChevronPacific Indonesia, operator of the Rokanblock, hit 207,148 barrels per day in the firsthalf of 2018, below a 2018 budget target of213,551 bpd.

https://www.cnbcindonesia.com

July 31, 2018

Indonesia’s Pertamina invites SOCAR for partnership

Source:

• https://www.azernews.az/oil_and_gas/135634.html

• Indonesia’s state-owned energy company,Pertamina, has approached Azerbaijan’s stateoil company SOCAR and Japan’s JX Nippon forpossible partnership to upgrade the country’sBalikpapan oil refinery.

• Pertamina had earlier a partnership with JXNippon Oil & Energy Corp for the Balikpapanupgrade, but cancelled the partnership inJanuary 2016 amid cost concerns and alonger-than-expected project timeline.

• SOCAR is a wholly state-owned national oilcompany headquartered in Baku, Azerbaijan.The company produces oil and natural gasfrom onshore and offshore fields in theAzerbaijani section of the Caspian Sea.

August 1, 2018

Coal and Mineral Resources

Indonesia to extend temporary mining permit for Freeport

Source:

• https://energy.economictimes.indiatimes.com/news/coal/indonesia-to-extend-

temporary-mining-permit-for-freeport/65195577

• Freeport is currently negotiating the sale of amajority of its stake in its local unit toIndonesia's state-owned mining companyInalum.

• Indonesian government will extendtemporarily a special mining permit (IUPK) forFreeport McMoran's local unit that is due toexpire on July 31, Coal and Minerals DirectorGeneral Bambang Gatot told reporters onMonday.

July 30, 2018

Indonesia keeps faith with coal to meet growing energy

demand

Source:

https://www.ft.com/content/0fd3ed3e-89b9-11e8-affd-da9960227309

https://www.tititudorancea.com/z/ies_indonesia_coal_production.htm

• “Coal is still the base load solution that the Indonesian government has for keeping the lights on,” says

Luke Devine, foreign legal consultant at law firm Baker McKenzie’s Jakarta office and an expert on the

country’s power systems.

• Coal remains the easiest — if not environmentally friendly — solution to satisfying the growing energy

demand of the archipelago. It is cheap, easy to extract and transport, and Indonesia has a lot of it.

• Indonesia’s coal production accounted for more than half of the country’s overall electricity production.

Geothermal and other renewable energy account for a meagre 5 per cent.

• Indonesia has 27.2bn tonnes of recoverable coal reserves, which will last for another 60 years at current

production rates.

• Keeping electricity prices low is particularly important ahead of presidential elections next year.

• What is more, unlike Thailand, where local people have staged protests and even hunger strikes to

challenge coal power plants, there has been no significant public backlash to coal in Indonesia, where

people’s electricity needs still largely outweigh concerns its environmental hazards.

July 31, 2018

Indonesia leaves coal DMO, domestic price cap

unchanged

Source:

• https://www.spglobal.com/platts/en/market-insights/latest-news/coal/073118-

indonesia-leaves-coal-dmo-domestic-price-cap-unchanged

• Indonesia's President Joko Widodo hasdecided to keep the current price cap ondomestic thermal coal procurement and isagainst revoking the domestic marketobligation policy, a senior government officialsaid Tuesday.

• The coal DMO volume has been decided bythe energy and mineral resources ministry,and the coal price capped at $70/mt FOB fordomestic purchases by state-owned utilityPLN will continue as per government'sregulation, Jonan said.

• Under the existing regulation, coal companieshave to allocate at least 25% of their annualcoal production for the domestic market.Indonesia applied the DMO in March toensure that domestic needs are met aftermore coal cargoes were diverted to theseaborne market because of higher pricerealization.

http://jakartaglobe.id

July 31, 2018

Electrification

Company says most Papuan villages to get power by 2019

Source:

• https://www.radionz.co.nz/international/pacific-news/363129/company-says-

most-papuan-villages-to-get-power-by-2019

• A state-owned electricity company inIndonesia says it will provide 99 percent ofvillages in Papua and West Papua provinceswith power by 2019. PLN said it hadelectrified 30 percent of the 4,535 villages inthe two provinces.

• Last week it signed an agreement withseveral universities in Indonesia to cooperateon the rollout.

• The company said it will electrify 1,200 morevillages this year.

http://www.tambang.co.id

August 1, 2018

PLN signs deal to expand electricity in two provinces in

Papua

Source:

• https://www.radionz.co.nz/international/pacific-news/363129/company-says-

most-papuan-villages-to-get-power-by-2019

• State-owned electricity company PLN has signed acooperation agreement with a number of institutions toimprove the electricity system through the “Papua Terang”program in Papua and West Papua provinces.

• The institutions are the Indonesian Military and the NationalInstitute of Aeronautics and Space (Lapan) as well as fivehigher educational institutions – the University of Indonesia,Bandung Institute of Technology, Gajah Mada University, theSepuluh Nopember Institute of Technology andCenderawasih University.

• The statement says the company plans to electrify 1,200 more villages this year.

• PLN also deployed 500 members of an expedition team under the name of “Ekspedisi Papua Terang.” The team members consisted of student volunteers, PLN, the Indonesian Military and Lapan.

• The expedition team has visited 415 villages in Jayapura, Wamena, Nabire, Timika and Merauke since Saturday, educating Papua residents and holding a survey to collect data about villages, potential renewable energy and the progress of their electricity development.

July 30, 2018

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