Gus Dur vows Tangguh LNG project to benefit Irianese
Gus Dur vows Tangguh LNG project to benefit Irianese
JAKARTA (JP): President Abdurrahman Wahid has promised that
the planned Tangguh LNG plant in Berau Bay, Irian Jaya, would
benefit the people of Irian Jaya.
The President also said he hoped the LNG megaproject would
help speed up the government's efforts to improve the country's
economy.
"The President ordered the minister of mines and energy to
speed up the developmental process of the Tangguh LNG plant in
Irian Jaya to boost the government's income, help accelerate the
economic recovery and improve the welfare of the Irianese,"
presidential expert staff member Rizal Ramli said in a statement
on Tuesday, referring to the meeting of the Cabinet's economic
team on Monday.
Abdurrahman said, however, that the environment should be
protected during the development of the project.
The gas fields around the planned Tangguh LNG plant have a
proven reserve of 14.4 trillion cubic feet (tcf) or a proven and
probable reserve of 23.7 tcf, of which the plant could produce
between 3 million to 18 million tons of LNG per year for 20
years.
Abdurrahman said he expects the project to yield a total
potential revenue of US$60 billion.
The Tangguh LNG project is owned by state oil and gas company
Pertamina and a consortium led by American oil and gas company BP
Amoco.
An Indonesian delegation led by Minister of Mines and Energy
Susilo Bambang Yudhoyono visited China for several days to market
the Tangguh LNG project.
Director General of Oil and Natural Gas Rachmat Sudibyo, who
took part in the visit, said the Chinese government told the
Indonesian delegation it would submit its LNG demand of three
million tons per year in the tender in August this year. The LNG
will be supplied to Guang Dong province.
Abdurrahman said he appreciated the visit to China, ordering
the minister to take all efforts necessary to follow up on the
negotiations with the Chinese government to win the LNG tender.
"The President underlined that it was very important to win
the Chinese LNG tender," Rizal said.
Aside from China, Indonesia is also trying to sell its LNG
products to India.
During the Cabinet meeting, the President also received
reports on a total of Rp 310 billion (US$33.6 million) in unpaid
forestry funds and fines owed by concessionaires to the
government to March 2000.
Abdurrahman ordered the Ministry of Forestry and Plantations
to be more proactive and tougher in recovering the funds.
The President also ordered State Minister of Investment and
State Enterprises Development Rozy Munir to perform an
organizational and financial restructuring soon on state
construction companies, given their poor performances.
The construction companies had preformed poorly even prior to
the economic crisis, Rizal said.
The President also voiced support to the Ministry of Industry
and Trade's efforts to help send Indonesian workers abroad amid
the economic crisis, which had caused rampant layoffs at home.
The President asked the ministry to provide workers before
they are sent abroad with training from funds from the tax
revenue collected from expatriate workers.
Abdurrahman also ordered state electricity company PT PLN to
be flexible in imposing electricity rate increases in the
industrial sector, given the cashflow problems experienced by
most of the country's industries.
The President ordered PLN to impose high rates on power users
during the peak period and provide incentives for users during
the off-peak period.
The President also ordered Minister of Maritime Exploration
Sarwono Kusumaatmadja to prepare concrete programs for boosting
the government's revenue through maritime explorations. (jsk)