Andaman Block: Do Not Repeat History, Aceh Gas Must Dock at Arun
The discovery of jumbo gas reserves in the South Andaman Block by Mubadala Energy represents a significant boon for Indonesia, and particularly for Aceh. However, this blessing could turn into a curse if Aceh remains a mere spectator on its own land.
This sentiment was expressed by Jose Rizal, an Acehnese businessman and General Chairman of the Association of Bumiputera Nusantara Indonesia Entrepreneurs (Asprindo). He stated his firm support for the move by Aceh Governor Muzakir Manaf to request a delay in the ratification of the Plan of Development (PoD) for the Tangkulo Field by the central government.
“This delay is not intended to hinder investment. It is a constitutional pause to ensure that such investment is fair to the people of Aceh, in accordance with the mandate of the UUPA (Aceh Law),” said Jose on Wednesday, 3 June 2026.
Three Calls to Action
To ensure the people of Aceh are not merely bystanders, Jose issued three specific calls to action. First, he demanded that the management of the Andaman block utilise the Onshore Receiving Facility (ORF) in the Arun Special Economic Zone (KEK).
He stated that the Aceh government has the right to reject the FPSO (Floating Production Storage and Offloading) scheme, which would involve transporting Aceh’s gas directly abroad without adding local value. All gas from the Tangkulo and Layaran fields must be landed and processed in the Arun KEK, Lhokseumawe.
“The existing infrastructure in Arun is already in place. Aceh’s human resources are ready. This will create thousands of jobs and downstream industries, rather than just being a figure in Revenue Sharing Funds (DBH),” he noted.
Secondly, Jose urged the local government to realise the 10% Participating Interest (PI) for Aceh.
“In accordance with Government Regulation 23/2015, Aceh’s Regional Owned Enterprises (BUMD) are entitled to a 10% PI. This is not a favour; it is a right. We urge the Aceh Government to immediately form a consortium of BUMDs and Acehnese entrepreneurs so that Aceh becomes an owner, not just a recipient of crumbs. PI dividends must be directed into an endowment fund for education and public welfare,” he asserted.
Thirdly, Jose suggested that the Aceh local government demand full transparency regarding contracts and profit-sharing schemes.
“The people of Aceh have the right to know the split for the state, the cost recovery, and the estimated annual DBH for Aceh. There must be no more oil and gas contracts signed in the dark. Public oversight is our fortress of sovereignty over the seas and lands of Aceh,” he concluded.