JAKARTA (IFT) - The government proposed a profit-sharing scheme (split) for oil and gas between the government and contractors with work contract, the details of which will be determined after the contractor produces oil and gas. Widjajono Partowidagdo, Vice Minister of Energy and Mineral Resources, said that the proposal was made so that the split between the government and the contractor will be more equitable, since it is decided after determining actual production. This prevents having aggrieved parties from the split.
There are currently 265 contractors with work contracts in the oil and gas sector, as well as for methane gas coal (coal bed methane). A total of 69 contractors have production contracts. The remaining 196 are exploration contractors. However, the production contractors have not significantly contributed to national oil production as of yet. Based on the projection of oil production in the State Budget Amendment of 2011 at 945 thousand barrels per day, an average of 905 thousand barrels per day was produced in October 12. Meanwhile, gas production reaches 8.49 million cubic feet per day, exceeding the target in the Budget Amendment of 7.76 million cubic feet per day.
PT Garuda Indonesia Tbk (GIAA)
The state-owned airline company has spent Rp 3.01 trillion of its net IPO proceeds of Rp 3.18 trillion throughout 2013. The company spent Rp 2.54 trillion from the IPO proceeds to develop its armada, and Rp 466.12 billion to fund its 2013 capex. The capex was allotted to the company and its subsidiary. The company still had remaining IPO proceeds of Rp 171.28 billion that is saved as deposits.
PT PLN (Persero)
The state-owned electricity company targets gas consumption for its power plants in 2014 to rise five percent to 470.3 BBTUD in 2014 from actual consumption of 409.9 BBTUD last year. The gas consumption target will be met by optimizing gas distribution from Kangean Energy and PT Nusantara Regas.
PT Sumber Alfaria Trijaya Tbk (AMRT)
The listed modern retail company—through its subsidiary Alfamart Retail Asia Pte Ltd Singapore—expands to the Philippines by establishing a joint venture subsidiary named Alfamart Trading Philippines Inc with a local partner. Alfamart becomes a minority shareholder in the joint venture with a 35-percent stake and capital of Rp 66.7 billion. The joint venture company will engage in commerce, distribution, and logistics segment.
PT Cita Mineral Investindo Tbk (CITA)
The listed bauxite producer many have to stop producing this year, following the banning of raw mineral export on January 12, 2014. An official of the company expressed his pessimism that the company could be able to produce this year. The company, through the consortium of PT Well Harvest Winning Alumina Refinery, started the construction of an alumina smelter on July of 2013, with investment value of US$ 1 billion in Kendawangan, West Kalimantan. The smelter’s development is expected to be completed in 2015.