Asprindo Proposes Hybrid Scheme for Andaman Block Development

The Nusantara Indigenous Entrepreneurs Association (Asprindo) has proposed a hybrid scheme for the development of the Andaman Block as a middle ground between investment interests and economic benefits for the region. The proposal emerged amid discussions on the Plan of Development (POD) for South Andaman, which is currently awaiting a government decision. Asprindo Chairman Jose Rizal stated there are two options currently on the table for the gas project’s development. The first option is for all gas to be processed at sea using a Floating Production Storage Offloading (FPSO) facility, as proposed by the operator, while the second option is for all gas to be processed onshore through an Onshore Processing Facility (OPF), pushed by the Aceh Government. According to Jose, each option carries different consequences for investment and the economic benefits received by the region. Under the FPSO scheme, gas is processed directly at sea, making it more efficient from an investment standpoint and enabling an accelerated Final Investment Decision (FID). However, the economic impact felt by the local community is considered relatively limited. Conversely, the OPF scheme requires additional onshore infrastructure development, necessitating a larger investment. On the other hand, this model is deemed capable of creating broader employment opportunities and supporting industrial energy needs in Aceh. Jose believes a hybrid scheme could be the solution to accommodate both interests. “Investors are facilitated, the central government is not disadvantaged, and the people of Aceh still receive long-term benefits,” Jose said in a written statement on Sunday (14/6/2026). In his proposal, approximately 60 percent of the gas would be processed through the FPSO facility to maintain the project’s economics and provide certainty for investors. The remaining 40 percent would be piped to an onshore processing facility built in Aceh. “Don’t put everything at sea. Don’t put everything onshore. Split it in two, 60 percent of the gas processed at the FPSO, so investor Mubadala is confident and the 2026 FID proceeds. The rest, 40 percent of the gas, is piped to a mini OPF in Lhokseumawe. Enough to power the PLN’s Aceh coal-fired power plant and revive Pupuk Iskandar Muda. This could simultaneously open 3,000-5,000 permanent jobs for the children of Aceh,” he explained. According to Jose, this approach can maintain a balance between state revenue, investment certainty, and economic benefits for the local community. “The central government still gets state revenue. Investors get certainty. The people of Aceh get jobs and cheap gas to build their own industry,” he said. He cautioned that discussions on the Andaman Block development should not drag on, thereby hindering the realisation of an investment estimated to be worth 7 billion US dollars. Jose also encouraged the Aceh Government to propose the hybrid option to the central government as an alternative solution to the polemic surrounding the gas project’s development. “Aceh agrees to the POD, provided the scheme is hybrid and gas for the people of Aceh is prioritised,” he added. According to Jose, the development of the Andaman Block must consider not only the investment aspect but also the long-term economic impact that can be felt by communities in the producing region.