We Close 2018 as a Sovereign Nation Controlling Our Own Natural Resources: President Jokowi
Date 31 Desember 2018
The Indonesian Government has a serious commitment to maintain the countrys sovereignty by controlling its energy and mineral resources, President Joko Jokowi Widodo has said.
Oil and gas resources areas in Kalimantan, known as the Mahakam Block, were previously controlled by foreign contractors from France (Total E & P Indonesie) and Japan (Inpex Corporation) for 50 years, but since 1 January 2018, the block has been fully managed by state energy holding company Pertamina, President Jokowi said through his Facebook fanpage on Monday (31/12).
In the meantime, the Rokan Block in Riau for 50 years was managed by an American companyChevron, but at the end of its contract period in 2021, this block will be fully managed by Pertamina. Several other oil and gas blocks will follow suit, the President added.
In addition, Ministry of Energy and Mineral Resources has also ordered Pertamina to manage other eight oil and gas blocks whose contracts will expire this year. Those eight blocks are Tuban Block in East Java province, Ogan Komering Block in South Sumatra province, South East Sumatra Block (SES) off the coast of Lampung and Jakarta, North Sumatra Offshore (NSO) Block on the east coast of Sumatra, East Kalimantan Block, Attaka Block, Central Block and Sanga-Sanga Block all in East Kalimantan province.
The biggest challenge came from mining company Freeport in Papua. After a long negotiation for 3.5 years, the Government finally becomes the majority owner of PT Freeport Indonesias shares and increased its share ownership from 9.36 percent to 51.23 percent through a US$3.85 billion deal, the President said
We close year 2018 as a sovereign nation controlling its own natural resources, President Jokowi concluded. (EN)
Translated by: Estu Widyamurti
Edited by: M. Ersan Pamungkas