Sakakemang Block’s development project may face another delay due to the new regulation on industrial gas prices. Repsol objected to the US$ 6 per MMBTU ceiling price set by the government.
The government provides flexibility for investors to choose the form of oil and gas cooperation contracts, including production sharing contracts with operating costs refund, or cost recovery. However, this does not apply to Pertamina.
The Indonesian Crude Price in July 2020 reached US$ 40.64 per barrel, increasing US$ 3.96 per barrel from US$ 36.68 per barrel in June 2020. Another factor supporting the increase in oil prices is the recovery of economic activity in several countries.
RNI will build an industrial area with the concept of a smart industry area on an area of 5,000 hectares in Subang, West Java. It has the potential to obtain a special economic zone status.
The consolidation of state-owned enterprises in aviation and tourism is deemed crucial to revive both pandemic-hit sectors. The holding will also facilitate the government to distribute the stimulus in National Economic Recovery Program.
ADPPI opposes the plan to provide compensation for geothermal exploration and infrastructure development costs as it is against Law No. 21/2014 and Government Regulation No. 7/2017.
The Ministry of Energy and Mineral Resources sets the Reference Coal Price for August 2020 at US$ 50.34 per ton, down 3.49 percent from July 2020, following reduced demand in several export destination countries.
The Ministry of Energy and Mineral Resources is still discussing the mechanism of open data rooms for Masela Block's overseas prospective investors. Even so, the divestment of Shell stakes in the block is targeted to complete in 2021.
