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I need more time for Masela development decision: Jokowi
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Energy and Mineral Resources Minister Sudirman Said (left) talks to Transportation Minister Ignasius Jonan (right) before a limited meeting at the State Palace in Jakarta on Feb. 1. (ANTARA FOTO/Widodo S Jusuf)
T
he government requires more time to deliberate on the long-awaited Masela gas-block development, given the scale and the complexity of the project, President Joko "Jokowi" Widodo has said.
He stated that the government’s main concen regards how people in Eastern Indonesia, particularly in South Maluku, might receive maximum benefit from the mega project.
"This huge long-term project is still in the study-phase and will be decided upon in 2018. The final investment decision (FID) is scheduled for 2018. […] We cannot allow people in the region to miss out on the opportunity to benefit," Jokowi said on Monday.
Meanwhile, Energy and Mineral Resources Minister Sudirman Said warned that the plan of development (POD) should be decided upon soon, otherwise the project FID would experience delay.
“[Assuming the FID comes in 2018], construction will begin in 2019 and operations in 2024," he said, adding that the ministry had made reports on both Masela development scenarios, onshore or offshore, and had noted the impact of such development in Southern Maluku and the amount of investment needed.
"The Maluku Governor has said that he is in favor of the project and will support the President’s decision and policies on the Masela Block, whatever they may be," said Sudirman.
Earlier, Coordinating Maritime Affairs Minister Rizal Ramli claimed the government had decided on an onshore scheme for Masela. According to Rizal, the approximate cost for onshore refinery construction is US$16 billion, significantly cheaper than the $22 billion required for offshore development. (ags)
