Indonesia's Economy, Political, Social, and Science Development Thread

[Reashot Xigwin]

RI seeks to regain status as ‘spice country’
Anggi M. Lubis, The Jakarta Post, Jakarta | Headlines | Fri, May 24 2013, 10:37 AM

Assortment of Spices

Indonesia is seeking to more than triple its spice exports in 2015 to take advantage of the world’s growing spice trade, a move that could see it revive its glory years as a world renowned spice exporter.

Agriculture Minister Suswono said in Jakarta on Thursday that given the world’s growing demand for spice products, Indonesia would be able to more than triple its spice exports to US$7.72 billion in 2015, about 9 percent of the global spice trade during the year.

Speaking during the 2013 Agro and Food Expo in Jakarta, the minister said to advance Indonesia’s agribusiness sector, the country should look to its unique and traditional commodities — namely spice and herbs — which once made the country globally renowned.

Suswono said spices — Indonesia’s fourth biggest exported agricultural commodity after shrimp, fish, and coffee — should take advantage of the growing demand in commodities widely used as raw materials for cigarettes, cosmetics and pharmaceuticals.

The ministry’s data shows that global trade for spices witnessed an average 10.2 percent increase annually. The world’s total spice trade is expected to reach $85.73 billion in 2015, about a 44.5 percent increase from $59.39 billion in 2010.

Suswono said Indonesia, which contributed 2.3 percent to the world’s spice trade in 2010, should explore new market opportunities to allow it to benefit from the surge in the world’s spice demand.

Trade Ministry data showed Indonesia’s spice exports reached $2 billion in 2012, a 25 percent increase from $1.6 billion in 2011. Indonesia produces and exports various kinds of spices, including pepper, nutmeg, cinnamon, ginger, turmeric and clove.

According to Suswono, Indonesia’s top spice commodities are pepper and nutmeg. According to data from the United Nations Conference on Trade and Development (UNCTAD), Indonesia is the world’s fourth-biggest producer of pepper.

The ministry’s data shows that Indonesia, which produced 88,160 tons of pepper in 2012, earned about $423.48 million from pepper exports during the year.

The country is the world’s biggest exporting country of nutmeg, according to the UNCTAD, reaching a total $32.6 million 2009.

However, according to UNCTAD and World Trade Organization (WTO) data, Indonesia is still behind China, India and Madagascar in the global market.

“Indonesia is one of the world’s renowned spice producing countries. Its reputation has earned it the nickname ‘the Spice Island country’,” Suswono said, adding that the reputation had also lured nations from across the globe to look for spices in the archipelago during the colonial era.

To achieve the target, Suswono said the ministry was making various efforts, including rehabilitating and expanding existing spice fields.

Besides spices, Suswono said herbal medicine also had promising world market potential that could see Indonesia become a top player in global trade for the commodity.

He said the government expected to book a Rp 15 trillion export value from the herb industry in 2015, while at the same time reaping Rp 20 trillion from domestic trade in the sector.

Data from the Agriculture Ministry shows that Indonesia recorded Rp 12.5 trillion from traditional medicine in 2012, up 13.64 percent compared to Rp 11 trillion in 2011.

The country reached an estimated Rp 13 trillion from herbal medicine in 2012, which was a 18.18 percent increase compared to Rp 11 trillion in 2011.

RI seeks to regain status as

 

[Reashot Xigwin]

Indonesia, Cuba explore further bilateral cooperation
(Xinhua)
17:03, May 24, 2013

The visiting Cuban Foreign Minister Bruno Rodriguez Parrilla (L) meets with his Indonesian counterpart Marty Natalagawa in Jakarta, Indonesia, May 24, 2013. (Xinhua/Zulkarnain)

JAKARTA, May 24 (Xinhua) -- Indonesian and Cuban foreign ministers discussed here Friday on possibilities to expand further cooperation in various fields between the two countries, strengthening the cooperation of the countries that jointly co- founded the Non-Aligned bloc in 1960s.

Speaking in a joint press conference attended by the visiting Cuban Foreign Minister Bruno Rodriguez Parrilla, Indonesian Foreign Minister Marty Natalegawa said that the two governments were interested to expand cooperation in various fields aside of trade.

Bilateral ties between Indonesia and Cuba has been increasing well, particularly in social and culture section. The two nations have exchanged athletes and coaches to undergo training programs in respective countries.

During the occasion, the two ministers witnessed the signing of MoU on sports and culture cooperation, conducted by senior officials of both countries.

Indonesia-Cuba diplomatic ties was initiated on January 1960 by Fidel Castro and former Indonesian president Soekarno. It was immediately followed by the visit of Soekarno to Cuba in May 1960. Since then Indonesia and Cuba preserve strong relationship in Non- Aligned Bloc forum that was established in 1961.

Even though it has been up and down in the last five years, the two-way trade between the two countries increased by 8.6 percent to 13.9 million U.S. dollars in 2012 from 12.8 million U.S. dollars in 2008.

Indonesia's exports rubber products, plastics, electronics, footwear and office equipment to Cuba. Meanwhile its import from the latter consists of vaccine and cigars.

Indonesia, Cuba explore further bilateral cooperation - People's Daily Online

Viva Cuba-Indonesia Friendship!

Fidel Castro & Sukarno trading head attire with each other.

 

[nufix]

Indofood and Multistrada Scouting for Plants in Kazakhstan, Official Says

Astana, Kazakhstan. Indonesian companies including Indofood Sukses Makmur and Multistrada Arah Sarana are considering investing in Kazakhstan as an entry point to the Central Asian market, an Indonesian government official says.

Rizal Affandi Lukman, deputy minister for economic and international financing cooperation, told the Jakarta Globe on Thursday that Indofood, the world’s largest instant noodle maker, and tire manufacturer Multistrada are considering opening production facilities in Kazakhstan. Rizal was speaking at the Astana Economic Forum.

He said Indofood was conducting a feasibility study into the Kazakhstan market. Werianty Setiawan, a director at Indofood, confirmed the plans in an e-mail.

Indofood has been strategically positioning itself in the global supply chain over the past year with share acquisitions in companies based in countries including China and Brazil.

Rizal said Multistrada was “studying the technical aspect … what kind of machine to use, the specification of the tires and such.” He added that Kazakhstan’s extremely cold winters may require particular product specifications and machinery requirements.

Rizal said Multistrada and the Indonesian government were in discussions with Samruk-Kazyna Invest, a Kazakh state-owned investment body, for a possible tire plant. He said Multistrada could form a joint venture with a state-owned company in Kazakhstan to invest a total of $250 million in the project.

“Its not only about the investment size, but we are also going to use Indonesian engineering and technology as well as our professionals,” he added.

The potential tire plant is expected also to absorb rubber sales from Indonesia into Kazakhstan.

Rizal said the tire plant would operate as a production hub for the Eurasian Economic Community, which includes Russia and Belarus and could create access to the European market.

Rizal said Kazakhstan president Nursultan Nazarbayev, on a visit last year to Indonesia, invited Indonesian crude palm oil producers to not only export CPO to Kazakhstan but also to open a refinery capable of producing derivative products for use in beauty products or food.

On Nazarbayev’s visit to Indonesia in April 2012, the countries formed a joint economic commission aimed to increase trade and investment between the two.

Rizal said combined trade between Indonesia and Kazakhstan last year — although still small — had almost doubled to about $64 million.

Kazakhstan Deputy Minister of Foreign Affairs Kairat Sarybay said in a panel discussion at the forum that “Kazakhstan is regarding Indonesia as a priority in Southeast Asia to which we gain access to Asean [Association of Southeast Asian Nations] nations], as well as APEC [Asia-Pacific Economic Cooperation].”

Kairat Karmanov, deputy chairman at Kazakhstan’s investment and trade agency KazNex Invest, said interest from Indonesia was visible at the previous forum, where two cabinet ministers from Indonesia led a large delegation to the Central Asian nation.

Indofood and Multistrada Scouting for Plants in Kazakhstan, Official Says - The Jakarta Globe

SBY Dispatches Chairul Tanjung to South Korea to Strengthen Ties
By ID/Harso Kurniawan on 6:26 pm May 24, 2013.

South Korean President Park Geun-hye , left, shakes hands with Chairul Tanjung, chairman of Indonesia’s National Economic Committee, at Cheong Wa Dae presidential office in Seoul on May 24, 2013. (EPA Photo/Yonhap)

Seoul. President Susilo Bambang Yudhoyono has dispatched Indonesian tycoon Chairul Tanjung to South Korea to further boost trade and investment partnerships between Indonesia and South Korea.

In his capacity as the chairman of Indonesia’s National Economic Committee (KEN), Chairul on Friday met with South Korean President Park Geun-hye in Seoul to discuss efforts to strengthen bilateral cooperation.

Chairul was accompanied to the meeting by KEN secretary and economist Aviliani, KEN member Raden Pardede, the head of the investment division at the Indonesian Chamber of Commerce and Industry (Kadin), Peter Gontha, and Indonesian Ambassador to South Korea John Prasetio.

“Chairul dispatched a letter from President Yudhoyono to the South Korean president, which, among other things, discusses plans to improve bilateral ties between the two countries,” Peter said of the meeting.

Chairul, meanwhile, said that although Indonesia and South Korea’s bilateral relationship was already strong, there is still room for expansion.

“We hope Indonesia can become like South Korea one day, where welfare is spread evenly. We’ve also invited South Korean businesses to invest in Indonesia,” Peter quoted Chairul as saying.

http://www.thejakartaglobe.com/business/sby-dispatches-chairul-tanjung-to-south-korea-to-strengthen-ties/

 

[nufix]

Indonesian Middle Class: Shop Till You Drop

When set foot back in the Soekarno-Hatta Airport Jakarta on Sunday afternoon two months ago, after spending a long holiday weekend out of town, I was shocked by the long jams along the roads in the area of the international airport. Vehicle actually runs faltered.

The day before, I was shocking when I looked at the traffic from Puncak to Jakarta. Traffic can be seen during a national holiday that comes on Friday, so the holiday weekend is longer than usual.

That is a phenomenon that we always see when the holidays arrive. People leave Jakarta to release their stress and find some relaxing atmosphere, although eventually they are exhausted to face traffic during holiday. Of course this activity needs extra money which is quite expensive.

When purchasing power increases, consumption is no longer about the stomach. There are many other needs that suddenly included in the list of basic needs. Home, vehicle, quality education, leisure, become a necessity.

Indonesia Statistics (BPS) recorded the number of domestic air passengers in March 2012 rose 10.63% compared with the previous month, while international air passengers rose 13.94%.

People who use air transportation are certainly not just for a vacation. There are many other matters, including employment and business. Whatever it is, an increase in the number of passengers is an indicator of economic growth.

Data released by BPS last week showed the economy in Q1/ 2012 grew 6.3% compared to gross domestic product (GDP) in the same period last year and grew 1.4% compared to Q4/ 2011.

Based on the record of Colliers International Indonesia, a property consultancy firm, there are more than 16 shopping centers will be built this year in the Greater Jakarta area of 443,700 square kilometers.

"Indonesia's middle class will continue to grow due to a growing economy. People purchasing power can be pumped," said Fauzi Ichsan, a senior economist of Standard Chartered Bank.

The car sales data released by the Association of Indonesian Automotive Industries (Gaikindo) showed trends in car sales continued to rise in last 10 years. Last year, 894,164 units has absorbed by the market, compared with 764,710 units in 2010.

However, sales of four-wheel drive bounced back to 433,341 units in 2007 and jumped to 603,774 units in 2008.

In the other hand, mobile phones may be able to describe the great absorption of consumers in Indonesia. 92 out of 100 people are 'familiar' with the communication device.

Currently, Indonesia is not only benefiting from a large population. The population composition which dominated by productive aged people become an asset or commonly referred to as the demographic dividend.

World Bank data shows the non-productive age dependence to the productive age continues to fall from 77.01% in 1960 to 48.34% in 2010.

That means, only about 48 people who depend on 100 productive aged people in 2010, lower than the 77 non-productive people who depended to 100 productive people 50 years ago.

The population structure of Indonesian economy is certainly beneficial as there are many young people who like to shop. They believe jobs will always be there for them, and the economy is predicted to grow at its (high) pace. (T03/lt)

Indonesian Middle Class: Shop Till You Drop - Bisnis.com

 

[Viet]

I think our Mods (@Hu Songshan) may make this thread sticky as Indonesia economy is the largest in ASEAN.

 

[nufix]

I think our Mods (@Hu Songshan) may make this thread sticky as Indonesia economy is the largest in ASEAN.

Thanks for your support, but I think it's okay though. There are more important threads to be put on sticky than this.

 

[Nike]

Garuda to operate 3 Bombardier aircraft in Kuala Namu

The Jakarta Post, Medan | Business | Thu, May 23 2013, 7:25 PM
A- A A+
Garuda Indonesia has prepared three Bombardier CRJ 1000 NextGen aircraft carriers with a capacity of 96 seats to serve in Kuala Namu, an international airport in Deli Serdang, North Sumatra, which has been designated to replace Polonia Airport in Medan.

“The supplying of aircraft carriers with 12 seats in executive class and 84 economy seats in Kuala Namu is in line with plans to make Medan the ‘hub’ of Garuda and Kuala Namu the ‘western hub’ of the airline,” said a spokesperson of Garuda’s Medan-branch Syamsuddin, in Medan, on Thursday, as quoted by Antara news agency.

He said passengers departing from other airports such as in Padang, West Sumatra and Palembang, South Sumatra, could make use of Garuda’s direct flights from Medan to international destinations such as Kuala Lumpur and Penang in Malaysia and Singapore, which will operate soon.

Garuda flights between Medan and Penang, for example, will open on June 1.

Garuda Indonesia is going to open three domestic routes – Medan-Batam, Medan-Padang and Medan-Palembang - all at once.

“It is part of our plans to develop Kuala Namu [Medan] as the fourth Garuda hub after Denpasar [Bali], Jakarta and Makassar [South Sulawesi],” said Syamsuddin.

He said the Bombardier aircraft carriers that would be stationed in Kuala Namu were part of 24 new Garuda aircraft of various types that would arrive this year. They included the Boeing 777-300 ER, the Airbus A330, the Boeing 737-800NG, and the Bombardier CRJ1000 NextGen. (ebf)

Garuda to operate 3 Bombardier aircraft in Kuala Namu | The Jakarta Post




Developers to benefit from demand in Greater Jakarta

The Jakarta Post, Jakarta | Business | Wed, May 22 2013, 12:31 PM
A- A A+
Paper Edition | Page: 14

Indonesian developers will benefit from the solid demand for residential, office and retail space in Greater Jakarta over the next 12-18 months, says Moody’s Investors Service in its latest report on the property market.

Developers will also see stable to high rental occupancy rates in their office and retail portfolios, as well as higher rental returns from these two commercial segments. Moody’s defines Greater Jakarta as the area including Jakarta, Depok, Bogor, Tangerang and Bekasi.

“We expect strong residential sales as a result of the growing population, urbanization and falling unemployment rate,” Jacintha Poh, a Moody’s analyst, said.

“The take-up rate on completed residential properties should be above 90 percent in 2013 judging by the healthy presale levels achieved by our rated developers at the end of 2012,” Poh said.

Poh was speaking on Moody’s just-released report, “Sustained Demand for Greater Jakarta Property Supports Indonesian Developers”.

In the report, Moody’s rates three property developers: Lippo Karawaci (Ba3 stable), Alam Sutera Realty (B1 stable) and Pakuwon Jati (B2 stable).

According to the report, both supply and demand in the residential market in Greater Jakarta have been growing steadily despite the global financial crisis in 2008-2009.

The report also says that residential price growths have been backed by real demand and a proportionate growth in household incomes. Average residential prices (per square meter) have increased at a compound annual growth rate (CAGR) of 15.6 percent over the last three years and remained broadly in line with the CAGR of per capita income of 16.4 percent during the same period.

“The office segment will see high occupancies and rising rental rates as there is limited new supply. Demand in the sector is being fuelled by new corporate set-ups and expansions,” Poh said.

Moody’s quotes property consulting firm Colliers International Indonesia (Colliers) as saying that office occupancy rates will reach 95-98 percent in 2013, providing a favorable backdrop for rental rates to grow by 7-16 percent this year.

“We expect strata-titled office space sales to be strong, as the cost of renting is almost equivalent to monthly mortgage payments,” Poh said.

In the retail segment, Moody’s further quotes Colliers as saying that occupancies will be broadly stable, between 87 and 98 percent while rental rates will improve up 10 percent, with supply growing in accordance with the expected demand increase.

The report adds that retail space demand will remain supported by buoyant domestic consumption and an influx of foreign retailers.

“While the retail segment is expected to be competitive, we expect strong retail space demand in middle- to upper-class malls located within large-scale developments or townships, as these malls cater to residents in captive areas,” Poh said.

http://www.thejakartapost.com/news/2013/05/22/developers-benefit-demand-greater-jakarta.html

 

[Nike]

China’s Guangxi Normal University opens Indonesia Center

Bagus BT Saragih, The Jakarta Post, Jakarta | National | Thu, May 23 2013, 6:13 PM
A- A A+

The Guangxi Normal University (GXNU) in Guilin, China, in collaboration with the Indonesian Embassy, has opened an Indonesian Cultural Center, the fourth such center established in the Asian superpower nation.

The three other centers have been established at the Beijing Foreign Studies University (BFSU), Hebei Normal University (HNU) and Guangzhou University.

The center was inaugurated by acting Indonesian consul general in Guangzhou Gantosori Tanjung, according to a statement from the Indonesian Embassy in Beijing made available to The Jakarta Post on Thursday.

“This center has an important role in bridging friendship between Indonesia and China and facilitating cultural exchanges between the two countries,” Gantosori said in the opening ceremony on May 18, as quoted in the statement.

He added that he hoped the center could help promote Indonesian culture in China. “Through this center, people will be able to get information about Indonesian culture, education, tourism and much other general information about Indonesia,” he said.

The establishment of the four Indonesian centers in China has been a result of collaboration between the Indonesian Embassy and the Chinese Education Ministry.(dic)

China

 

[farhan_9909]

few years before when i was a school student.had made alot of indonesian friends on nimbuzz(mobile).

and my general knowledge was non existing.i used to poke my indonesian friends.pakistan is more powerful than indonesia,has alot of money.indonesian are poor and pakistanis are rich.

but over the years when i studied deep about indonesian economy and the news about indonesia possibly repalcing even india in BRICS

i was surpised when i knew that indonesian GDP is closed to 1trillion and is on the way to become the biggest Muslim world economy.while we pakistanis are atleast 3 decades behind indonesia.be it in GDP or per capita or social life

but i am very happy for my indonesian brothers.and they are concern of Proud for me when i say yes we have Muslim countries with GDP of 1 trillion.turkey and indonesia

 

[Nike]

SBY scheduled to lead UN panel meeting on post-2015 agenda

The Jakarta Post, Jakarta | National | Sun, May 26 2013, 3:23 PM
A- A A+

President Susilo Bambang Yudhoyono will lead the last meeting of United Nations (UN) high level panel on post-2015 development agenda, scheduled to take place in New York, US, from May 29 to 31.

“Please pray for me so that the last panel meeting will run smoothly and its results can bring benefits for all of us,” Yudhoyono said via his Twitter account, @SBYudhoyono, on Sunday, as quoted by Antara news agency.

Yudhoyono and two other leaders, Liberian President Ellen Johnson Sirleaf and UK Prime Minister David Cameron, were appointed by UN Secretary-General Ban Ki-moon to co-chair the panel and advise on the new global development framework after the Millennium Development Goals (MDGs) expire in 2015.

The fifth gathering of the high level panel is the final in a series of meetings beginning in New York, US, in September 2012; then London, UK, in November 2012; then Monrovia, Liberia, in February, 2013; and most recently Bali, Indonesia, in March 2013.

The President said the panel’s report would be handed over to the UN Secretary-General to be discussed by UN member countries. (ebf)

SBY scheduled to lead UN panel meeting on post-2015 agenda | The Jakarta Post

 

[Nike]

few years before when i was a school student.had made alot of indonesian friends on nimbuzz(mobile).

and my general knowledge was non existing.i used to poke my indonesian friends.pakistan is more powerful than indonesia,has alot of money.indonesian are poor and pakistanis are rich.

but over the years when i studied deep about indonesian economy and the news about indonesia possibly repalcing even india in BRICS

i was surpised when i knew that indonesian GDP is closed to 1trillion and is on the way to become the biggest Muslim world economy.while we pakistanis are atleast 3 decades behind indonesia.be it in GDP or per capita or social life

but i am very happy for my indonesian brothers.and they are concern of Proud for me when i say yes we have Muslim countries with GDP of 1 trillion.turkey and indonesia

Thanks for your compliment, indeed Indonesia is now in the long run process to became what we had aimed since our independence day.

 

[nufix]

few years before when i was a school student.had made alot of indonesian friends on nimbuzz(mobile).

and my general knowledge was non existing.i used to poke my indonesian friends.pakistan is more powerful than indonesia,has alot of money.indonesian are poor and pakistanis are rich.

but over the years when i studied deep about indonesian economy and the news about indonesia possibly repalcing even india in BRICS

i was surpised when i knew that indonesian GDP is closed to 1trillion and is on the way to become the biggest Muslim world economy.while we pakistanis are atleast 3 decades behind indonesia.be it in GDP or per capita or social life

but i am very happy for my indonesian brothers.and they are concern of Proud for me when i say yes we have Muslim countries with GDP of 1 trillion.turkey and indonesia

Few years back, Indonesia possibly was behind Pakistan economically, as Indonesia was the worst victim of Asia Financial Crisis that threw Indonesia's economy from USD 400+ billion in early 1990 to only USD 90 billion in 1998. So for around a decade, Indonesia was behind Pakistan as we had to reform everything including the policy for citizenship and battling rebellions, Tsunami 2004 was again brought Indonesia's economy to the lowest point as we have to reconstruct the cities that got swept.

The momentum of Indonesia's economy started in the late 2004 when President Susilo Took office and completely wiped all rebellions out and reformed economic policy and his policies were proven right when Indonesia's economy was resilience against global crisis in 2008, from that moment on, he had been making Indonesia's economy became USD 900+ billion in 2013 nominally, in practically 5 years.

So if you were in school during 1998 - 2008, you weren't actually wrong saying Pakistan had more money than Indonesia because the truth is, a decade during our reformation period after the crisis, Indonesia had lesser money even compared to African countries like Nigeria.

 

[farhan_9909]

Few years back, Indonesia possibly was behind Pakistan economically, as Indonesia was the worst victim of Asia Financial Crisis that threw Indonesia's economy from USD 400+ billion in early 1990 to only USD 90 billion in 1998. So for around a decade, Indonesia was behind Pakistan as we had to reform everything including the policy for citizenship and battling rebellions, Tsunami 2004 was again brought Indonesia's economy to the lowest point as we have to reconstruct the cities that got swept.

The momentum of Indonesia's economy started in the late 2004 when President Susilo Took office and completely wiped all rebellions out and reformed economic policy and his policies were proven right when Indonesia's economy was resilience against global crisis in 2008, from that moment on, he had been making Indonesia's economy became USD 900+ billion in 2013 nominally, in practically 5 years.

So if you were in school during 1998 - 2008, you weren't actually wrong saying Pakistan had more money than Indonesia because the truth is, a decade during our reformation period after the crisis, Indonesia had lesser money even compared to African countries like Nigeria.

i was in school until 2009-10.
Problem was i had no knowledge regarding economy or anything else.

Pakistan also need someone like respected President Susilo.

Pakistan had a growth rate of 8.4% in 2004.but as soon as we joined the war on terror for the sake of USA against our own people.the same people are now turned against us and killing us daily.

i hope the terrorism will vanish in pakistan soon under the peace deals with taliban and we will again have a modest economic growth rate

 

[nufix]

i was in school until 2009-10.
Problem was i had no knowledge regarding economy or anything else.

Pakistan also need someone like respected President Susilo.

Pakistan had a growth rate of 8.4% in 2004.but as soon as we joined the war on terror for the sake of USA against our own people.the same people are now turned against us and killing us daily.

i hope the terrorism will vanish in pakistan soon under the peace deals with taliban and we will again have a modest economic growth rate

I hope so, war on terror has made Pakistan suffer from an un-ideality situation for investments. And a country such as Pakistan with considerably big firepower and nuclear will be perfect with a good economic foundation, after all, not all muslim majority countries get to see a chance to acquire nuclear arsenal like Pakistan.

Hope for the best for Pakistan

 

[nufix]

Pertamina Applies EOR Technology In Block-2 Sudan

JAKARTA—PT Pertamina Hulu Energi will apply chemical enhanced oil recovery (C-EOR) technology to improve oil production of West Bamboo Field in Block-2, Sudan.

PHE Manager Asset of Middle East and Africa Eko Rukmono said C-EOR technology is applied by injecting chemicals into drilling wells in West Bamboo. C-EOR is cheaper than steam implementation into drilling wells.

“The company will conduct C-EOR pilot project in West Bamboo Field around Mei-October 2013. The technology is cheaper and more efficient than steam,” he said, Monday (5/20).

Eko said the lab test result showed C-EOR implementation can produce as many as 17,000 barrels oil in 3 months and recovery rate reach 80%.

Currently, the company has asked approval implementation of C-EOR commercial phase to Chief Sudan National Petroleum Corporation (Sudapet) to produce heavy oil. If it’s approved, PHE expects to get right to apply C-EOR in all Sudan oil block.

Oil reserves in Sudan is estimated around 1 billion barrels with production of 120,000 barrels per day. “Some 20% of oil reserves in Sudan are heavy oil. If PHE granted the right to apply C-EOR, so the company could increase heavy oil reserves by two fold,” he said.

C-EOR technology usage has been initiated since 2012 when PHE and Institute Technology of Bandung (ITB) conducted study in West Bamboo. Then in August 2010, Pertamina , Sudapet and ITB signed MoU of C-EOR implementation.

The laboratory analysis was conducted in February-June 2011, and in March-April 2012 PHE received approval to test C-EOR usage from Great Nile Petroleum Company (GNPOC) which is the operator in West Bamboo, Block-2 Sudan.


Pertamina Applies EOR Technology in Block-2 Sudan - Bisnis.com

In 2015, the company will apply C-EOR in oil and gas field to increase heavy oil production. In Sudan Pertamina has been the operator in Block-13 Red Sea with 20% participating right. While, other operators are CVPC, Sudapet, Express and NRG.

In addition to increase oil production in West Bamboo Field, Pertamina is waiting Oman government approval to acquire an oil and gas block in the country. The company also awaiting commercial declaration of Oman government before asks Indonesia government’s approval.

Pertamina also interested in acquiring oil and gas blocks in Oman because oil and gas production in Oman reaches 1 million barrels per day with population only 3 million. In addition, the block to be acquired is estimated have oil reserves by 50 million barrels.

Moreover, Oman government is very open to investment from other countries and the political risk is not too high. While waiting acquisition process of Block West Qurna in Iraq, Pertamina will receive right to match. Therefore, the company will get quite large crude oil quota, so it ensure the supply of refinery that to be built by government. (t08/aph/tw)