Ada Pertanyaan? Hubungi Kami 
Ada Pertanyaan? Hubungi Kami Kartini L. Makmur, Andin Aditya Rahman
Indonesia is currently experiencing deficits in gas to satisfy domestic demand according to Kurtubi, an expert on oil and gas. To overcome this deficit, it essential to deny the extension of Mahakam Block contract. Because it is possible that the bloc is a strategical asset to fulfill domestic gas demand.
Oil and gas reserves were first discovered in the Mahakam Block in 1972. The production sharing contract for the Mahakam Block was signed in 1977, which was subsequently extended in 1997 for another 20 years.
The Mahakam Block has proven over the years that its reserves should not be taken lightly. Indonesia became the largest liquefied natural gas exporter between 1980 and 2000, which was mainly achieved by gas production that derived from the Mahakam Block.
“If the Mahakam Block contract is not extended, we are back to being sovereign. This bloc has the highest gas production in Indonesia. This will benefit the people and we can regulate the available gas,” Kurtubi stated.
Kurtubi explained that the current domestic demand of gas is a highly urgent matter that must be immediately addressed. For example, the national priority program to convert from using oil fuels to using gas fuels.
“This cannot be promptly done if there is no gas supply,” underlined Kurtubi.
He asserted that if gas were to be readily available, residents can almost immediately convert to gas fuel. According to his personal calculations, if half of the total motor vehicles in Indonesia converts to gas fuels, the government can save up to IDR 100 trillion in one budget year.
“The state can be prudent because there’s no need to subsidize oil fuels. The people can also benefit from this because gas prices are only IDR 3,100 to IDR 4,100 compared to buying subsidized premium for IDR 6,500,” stated Kurtubi.
Kurtubi also perceived that the Mahakam Block can also significantly supply the gas needed for electrical production, which will reduce the government’s expenditure in providing subsidies for electricity. He further explained that the principal cost of gas-based electricity is only IDR 700 per kWh compared to the currently subsidized electricity rate of IDR 800 per kWh.
“The current electricity rate for the people is IDR 800 per kWh, so we don’t need electrical subsidies if we use gas,” he concluded.
Chandra Tirta Wijaya, member of Commission I at the House of Representatives, seemingly agreed with Kurtubi by asserting that the Indonesian government must be able to encourage increases in gas production. According to Chandra, gas plays an important role in anticipating the decline in oil production, as well as fossil fuels.
“It is correct that fossil fuel energy is running out with time, but we must be vigilant. Oil may decline but gas must be well managed,” he stated.
As a side note, it is estimated that the Mahakam Block currently holds 185 million barrels of oil and gas reserves of 5.7 trillion cubic feet. By the time the product sharing contract expires in 2017, the Mahakam Block will hold 131 million barrels of oil and gas reserves 3.8 trillion cubic feet.
(hot/kc)
Kartini L. Makmur, Andin Aditya Rahman
Indonesia is currently experiencing deficits in gas to satisfy domestic demand according to Kurtubi, an expert on oil and gas. To overcome this deficit, it essential to deny the extension of Mahakam Block contract. Because it is possible that the bloc is a strategical asset to fulfill domestic gas demand.
Oil and gas reserves were first discovered in the Mahakam Block in 1972. The production sharing contract for the Mahakam Block was signed in 1977, which was subsequently extended in 1997 for another 20 years.
The Mahakam Block has proven over the years that its reserves should not be taken lightly. Indonesia became the largest liquefied natural gas exporter between 1980 and 2000, which was mainly achieved by gas production that derived from the Mahakam Block.
“If the Mahakam Block contract is not extended, we are back to being sovereign. This bloc has the highest gas production in Indonesia. This will benefit the people and we can regulate the available gas,” Kurtubi stated.
Kurtubi explained that the current domestic demand of gas is a highly urgent matter that must be immediately addressed. For example, the national priority program to convert from using oil fuels to using gas fuels.
“This cannot be promptly done if there is no gas supply,” underlined Kurtubi.
He asserted that if gas were to be readily available, residents can almost immediately convert to gas fuel. According to his personal calculations, if half of the total motor vehicles in Indonesia converts to gas fuels, the government can save up to IDR 100 trillion in one budget year.
“The state can be prudent because there’s no need to subsidize oil fuels. The people can also benefit from this because gas prices are only IDR 3,100 to IDR 4,100 compared to buying subsidized premium for IDR 6,500,” stated Kurtubi.
Kurtubi also perceived that the Mahakam Block can also significantly supply the gas needed for electrical production, which will reduce the government’s expenditure in providing subsidies for electricity. He further explained that the principal cost of gas-based electricity is only IDR 700 per kWh compared to the currently subsidized electricity rate of IDR 800 per kWh.
“The current electricity rate for the people is IDR 800 per kWh, so we don’t need electrical subsidies if we use gas,” he concluded.
Chandra Tirta Wijaya, member of Commission I at the House of Representatives, seemingly agreed with Kurtubi by asserting that the Indonesian government must be able to encourage increases in gas production. According to Chandra, gas plays an important role in anticipating the decline in oil production, as well as fossil fuels.
“It is correct that fossil fuel energy is running out with time, but we must be vigilant. Oil may decline but gas must be well managed,” he stated.
As a side note, it is estimated that the Mahakam Block currently holds 185 million barrels of oil and gas reserves of 5.7 trillion cubic feet. By the time the product sharing contract expires in 2017, the Mahakam Block will hold 131 million barrels of oil and gas reserves 3.8 trillion cubic feet.
(hot/kc)