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Jakarta Post

Construction of Abadi LNG facilities to contribute Rp 73 trillion to economy

  • News Desk

    The Jakarta Post

PREMIUM
Jakarta   /   Wed, January 1, 2020   /  10:39 am
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One of the exploration facilities in the Masela oil and gas block in Maluku burns off excess gas.(Courtesy of/maritim.go.id)

The Abadi liquified natural gas (LNG) plant in the Masela block of Maluku is expected contribute Rp 73 trillion (US$5.27 billion) to the economy during its construction as it is to implement a 26-percent local content requirement (TKDN) for its production, according to a public official. The head of the Upstream Oil and Gas Regulatory Special Task Force (SKKMigas), Dwi Soetjipto, said recently that according to existing regulations about 26 percent of goods and services for the  $19.8-billion LNG project should be procured from local companies. "The goods and services that should be procured from the local market will be worth about Rp 73 trillion," he said on Dec. 19. The government is expecting the proportion of TKDN in the total procurement of goods and services in the oil and gas sector to reach 70 percent this year, up by 7 percentage points from last year. ...