Dream of Building a Cendrawasih Earth with PGN Gas

By : Abraham Sihombing And Aldo Bella Putra | Sunday, December 03 2017 - 15:00 IWST

Sektor Migas (Foto Ist)
Sektor Migas (Foto Ist)

INDUSTRY.co.id - Jakarta - One of the interesting events throughout 2017 is the success of President Joko Widodo in mid-October 2017 and set the equivalence of the price of oil in Papua compared to other regions in Indonesia. BBM Satu Price program is the president's smart move in equity development in the era of his government.

The previous fuel price in Papua is much more expensive than other regions. Now it will not be felt again. The BBM One Price program launched by the government allows the same fuel prices to be enjoyed by Papuans.

As is known, the price of fuel in some areas of Papua previously sold well above the provisions of the price set by the government. BBM in Papua previously sold in the price range Rp70.000-100.000 per liter.

BBM One Price Program is a program that is a form of instruction of President Joko Widodo who wants reduced inequality of various goods prices in eastern Indonesia, especially in Papua,

Through the program, the people of Papua can now enjoy the same fuel prices as their brothers in Java and various other places in Indonesia, namely Premium fuel for Rp6.450 per liter and Solar Rp5.150 per liter.

With the government program, the author sees the seriousness of the government to build and develop Papua as one of the business centers in eastern Indonesia. In fact, not only fuel, natural gas which is known as good energy and many found in Papua is also expected to prosper the people of Papua.

There is a natural gas field called Tangguh gas field located in Bintuni Bay District, West Papua Province. The gas field is said to contain proven natural gas up to 500 billion cubic meters (m³) or 17 trillion cubic feet (Tcf). Meanwhile, its natural gas reserves have the potential to reach more than 800 billion m³ (28 Tcf).

Now, the Tangguh gas field that was discovered in the 90s and started production in 2009 was developed by a consortium. The consortium consists of several international energy companies, namely British Petroleum which controls 37% shareholding, CNOOC about 17% and Mitsubishi Corporation by 16.3%. The remaining shareholdings are held by various energy companies Japan, namely Nippon Energy, Kanematsu, Sumitomo and Nissho Iwai.

The findings of the gas fields are considered positive because they can potentially improve the living standards of Papuan communities as well. Natural gas that is sucked from inside the bowels of the earth is liquefied through a high pressure process to become Liquified Nations Gas (LNG). LNG is then transported to various consumers in Asia, such as China, South Korea and Japan.

Then the question arises, whether the community in the location of the gas fields have been enjoying the existence of LNG tesebut as one commodity that can improve their lives?

The government is expected to start paying attention to it and make it as one of the efforts to prosper the people of Papua in a sustainable manner. With the equivalence of fuel prices in Papua with in various other regions in Indonesia, the wheels of the economy is expected to spin quickly according to the target set by the government.

In the midst of the development of the economic wheel of Papua, the government will also be expected to continue to improve the living standards of the people of Papua through the utilization of LNG as alternative energy to support life there. To that end, the government is expected to encourage and facilitate PT Perusahaan Gas Negara Tbk (PGAS) to handle it in Papua.

One of the government's big plans in Papua is the plan of a State-Owned Enterprise (BUMN) that will build a cement plant in Papua to support various construction activities there. The realization of the construction of the plant is desirable to promote the progress of development in Papua.

Meanwhile, PGAS will play a major role in controlling the use of LNG in Papua. If this is true, the government through PGAS can use the LNG produced by the Tangguh gas field as the main fuel for the cement plant.

The use of LNG in the cement production process in Papua is expected to reduce the selling price of cement in the market so that Papua's cement production can compete in various domestic and global cement markets. With the plant, Papua is expected to have high competitiveness in business and economy in the future.

In addition, the government can also take advantage of LNG in the form of Gas Fuel (BBG) as an alternative fuel of various vehicles moving the rate on earth Cendrawasih it. This is in line with the proclamation of the Trans Jaya road development by President Jokowi some time ago. The reason, with the longer and more extensive roads made in Papua, it will be more and more motor vehicles that operate there.

In addition, if it can be realized there, then the existence of BBG in Papua as one alternative energy for motor vehicles can help Pertamina to reduce the supply of fuel to Papua. We all know, the program of BBM One Price applied by President Joko Widodo makes Pertamina (he said) potentially suffered losses up to Rp800 billion. That is caused by the high cost of fuel distribution in Papua.

However, President Joko Widodo remains determined to realize the program while saying at that time, "I say, this is not a matter of profit and loss. This is a matter of social justice for all Indonesian people. The amount of Rp800 billion is up to the cross subsidy from which, it is Pertamina's business. But what I want, there is justice for all the people of Indonesia. So the price now in all districts is Rp6.550 per liter for Premium. "

Therefore, PGAS management should have a vision to develop Papua through the use of LNG in the form of BBG as one of the concrete steps forward. In addition, PGAS's vision can also help Pertamina to reduce the supply of fuel to Papua in the future to minimize the losses that arise. Ultimately, Pertamina's role in sustainable development in Papua can be replaced by the presence of PGAS in there utilizing local Papuan resources. (Abraham Sihombing)

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