Japanese help sought for Natuna
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)