Japanese help sought for Natuna
JAKARTA (JP): Indonesia is pushing Japan to take part in the development of the huge natural gas field in the Natuna islands in the South China Sea.
More specifically, State Minister of Research and Technology B.J. Habibie, who is handling the Natuna gas project, is after Japanese technology in overcoming the tricky extraction necessary because of the high carbon dioxide content of the Natuna reserves.
The proposal was discussed at a meeting of the Japan-Indonesia Science and Technology Forum at Habibie's office yesterday.
The extraction will be expensive and difficult, Habibie said, but the problem "could be solved by using high technology."
Lying between West Kalimantan and the Malaysian peninsula, the Natuna islands are about 1,100 kilometers north of Jakarta. The area promises to be an economic gold mine, with deposits of recoverable natural gas in the surrounding seabed estimated at some 45 trillion cubic feet.
State-owned oil and gas company Pertamina and American oil giant Exxon, in a US$35 billion deal last year, agreed to jointly develop the gas field. When completed, Natuna will become the largest offshore natural gas project in the Asia-Pacific region.
Indonesia has already begun offering the gas to countries, such as South Korea, which have already showed a keen interest in purchasing Liquefied Natural Gas from the Natuna gas field.
Habibie pointed out yesterday that Japan is Indonesia's biggest investor, representing nearly 30 percent of all implemented foreign investment.
Japan's participation in new development projects, such as the Natuna gas field, would, according to Habibie, be another exercise in increasing the compatibility of the two economies.
Separately, Minister of Trade Satrio Budiardjo Joedono, declined to answer journalists' inquiries yesterday about whether the Japanese had agreed in principal to invest in Natuna.
"It is being discussed in the meeting," he replied.
When pursued further on the estimated investment Indonesia would like to see, Joedono said "that depends on the technology."
Pertamina President Faisal Abda'oe, when asked the same question, said "predictions are easy, the important thing is the implementation."
Faisal said that at present no Japanese companies had been identified to tackle the project.
No less than seven Indonesian cabinet ministers attended yesterday's annual meeting, which included Minister of Mines and Energy I.B. Sudjana, Minister of Education and Culture Wardiman Djojonegoro and Minister of Tourism, Post and Telecommunications Joop Ave.
It was the 13th steering committee meeting.
Habibie headed the Indonesian delegation, while the Japanese team was led by Yoshiro Hayashi.
The JIF was founded in 1984 as a result of a 1981 agreement between then Japanese Prime Minister Yasuhiro Nakasone and President Soeharto to create an arena for dialog in technical and scientific cooperation.
The main purpose of the meeting was to assess existing projects and examine potential new ones for the 1996/1997 fiscal year.
Among the programs currently running are the Java-Madura bridge construction, a professional human resources development project and the establishment of the Center for Environmental Health Related Policy.
Apart from the Natuna gas field project, Indonesian officials also emphasized the importance of supporting the planned Jakarta's Mass Rapid Transit project.
The first part of that US$1.3 billion project will be a 14.5 kilometer mass transit line from Blok M in South Jakarta to the Kota area in the north.
According to Habibie, cooperation between Japan and Indonesia is becoming more stronger and has assumed a new character. "Twenty-five years ago we were only trade partners. Now we are partners in trade and industry," he said.
He maintained that closer cooperation is in the best interests of both countries, since Japan would also reap rewards from Indonesia's industrial progress. (mds)