TheJakartaPost
Please Update your browser
Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.
Masela saga ends as Jokowi announces onshore scheme
President Joko âJokowiâ Widodo discusses the development of the Masela gas block during a press conference last year
Change text size
Gift Premium Articles
to Anyone
Share the best of The Jakarta Post with friends, family, or colleagues. As a subscriber, you can gift 3 to 5 articles each month that anyone can read—no subscription needed!
P
span class="caption">President Joko 'Jokowi' Widodo discusses the development of the Masela gas block during a press conference last year. The President finally announced the government's decision on the deepwater gas block development on Wednesday.(Kompas.com/Indra Akuntono)
President Joko "Jokowi" Widodo has decided on the fate of Indonesia's largest deepwater gas project Masela after months of polemic, by approving an onshore development scheme in Maluku province.
Given the scale and complexity of the long-term project, the government took a long time to consider all aspects and input relating to the multi-trillion rupiah project, Jokowi said.
"Therefore, based on the calculations and considerations that I myself have made, we have decided to build the project onshore," he said at Supadio Airport's departure lounge in Pontianak, West Kalimantan, on Wednesday.
The main considerations, he continued, were the multiplier effects and the acceleration of economic development, both in the Maluku region and in terms of national development. "The energy and mineral resources minister and SKKMigas [the Upstream Oil and Gas Regulatory Special Task Force] will follow up on the decision," Jokowi added.
Energy and Mineral Resources Minister Sudirman Said added that the ministry would direct information on the decision to the contractors, Inpex Corp and Shell, to review and adjust the proposal of development (POD). The final investment decision (FID) is targeted to be completed in 2018.
"We will convey this news to investors through an official letter, then we give them the opportunity to review. With possibility of [the POD] being reviewed, there will be a little delay," he said.
He also urged SKKMigas to leave out unnecessary details from the discussion with Inpex and Shell to accelerate the project, highlighting Jokowi's stance on how the project should immediately benefit the surrounding communities as well as promote economic development. (ags)(+)
