Rp314 Trillion Investment Signed, Here’s the Detail of Indonesia-UAE Energy Cooperation

MINISTRY OF ENERGY AND MINERAL RESOURCES
REPUBLIC OF INDONESIA
PRESS RELEASE
NUMBER: 026.Pers/04/SJI/2020
Date: 13 January 2020

Rp314 Trillion Investment Signed, Here's the Detail of Indonesia-UAE Energy Cooperation

The United Arab Emirates (UAE) places high trust on the energy business development in Indonesia. As many as 11 business agreements between Indonesia and the UAE were signed, and mostly are in the energy business. The total investment of these agreements is estimated at Rp314.9 trillion or USD22.89 billion. In addition to the 11 business agreements, 5 agreements in the fields of religion, education, agriculture, health, and counter-terrorism between the UAE and the Indonesian government were also signed.

"I'm very pleased, today 16 cooperation agreements are signed," said President Jokowi after a bilateral meeting with Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces Mohamed bin Zayed in Abu Dhabi on Monday (13/1) local time as reported by the Indonesian Ministry of State Secretariat.

Of the 16 agreements between Indonesia and the UAE, 5 are in the fields of religion, education, agriculture, health, and counter-terrorism, while 11 are business agreements in energy, oil and gas, petrochemical, port handling, telecommunications, and research.

One of the business agreements signed is the development of a floating Solar Photovoltaic Power Plant (PLTS) at Cirata Dam, West Java. Masdar, an Abu Dhabi-based new, renewable energy company, will partner with PT Pembangkit Jawa Bali Investasi (PJBi) to develop Cirata floating PLTS with a capacity of 145 Mega Watt Peak (MWp).

The estimate investment of the power plant is Rp1.8 trillion. The Cirata floating PLTS is projected to break the record for the largest solar photovoltaic power plant in ASEAN, outnumbering the Philippines Cadiz Solar Power Plant which capacity is 132.5 MW.

Besides new, renewable energy development, a number of oil and gas business agreements were signed, for example the development of the Refinery Development Master Plan (RDMP) RU V Balikpapan between Pertamina and Mubadala, the development of crude complex potential in Balongan between Pertamina and ADNOC, and the supply of Liquefied Petroleum Gas (LPG) between ADNOC and Pertamina.

In the mineral subsector, Emirates Global Aluminium (EGA) and PT Indonesia Asahan Aluminium (Inalum) signed a cooperation on the increased production of ingot alloy and billet. During the trial period, production increase is planned at 20 thousand tons, while the current production capacity is 250 thousand tons.

Below is the details of the energy business cooperation between the UAE and Indonesia:

• LPG Supply Contract between Abu Dhabi National Oil Company (ADNOC) and Pertamina with a contract worth of USD90-270 million;
• RIPA (Refinery Investment Principle Agreement) between Mubadala Investment Company and Pertamina to continue the negotiation for ownership until 49% of shares of PT Kilang Pertamina Balikpapan (KPB) - RDMP RU V with total cooperation potential worth of USD1.6 billion;
• MoU between ADNOC and Pertamina on the development of Crude to Petrochemical Project of USD10.1 billion;
• The signing of Power Purchase Agreement (PPA) for the Cirata floating PLTS between PT PJB and Masdar, with projected investment worth of USD 129 million;

Addendum of MoU between Emirates Global Aluminium (EGA) and PT Indonesia Asahan Aluminium (Inalum) to accommodate cooperation period, the increase of furnace capacity including the transfer of technology from 250 ktpa (kilo tonnes per annum) to 300 ktpa, the technical exchange in reduction technology, and the greenfield aluminium smelter project in North Kalimantan with a capacity of 500-1,000 ktpa. (IY)

Share This!