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Indonesia: Pertamina officially takes over Rokan Block from Chevron, reveals investment and drilling plans

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JAKARTA, INDONESIA — Indonesia’s state oil firm PT Pertamina has officially taken over the operations of Riau’s Rokan oil block, as the contract with the previous operator, PT Chevron Pacific Indonesia (CPI)—a business unit of multinational oil and gas giant—expires this year.

Energy and Mineral Resources Minister Mr Arifin Tasrif said in his address at the Rokan handover ceremony on 8 August that Pertamina’s upstream subsidiary PT Pertamina Hulu Rokan (PHR) would be the official operator for the next 20 years with a 100 per cent participating interest scheme.

This also includes a 10 per cent participating interest for the oil-producing region’s state-enterprise, as stipulated by the Ministerial Decree.

Pertamina’s appointment followed a proposal it made: A signature bonus — a bonus provided ahead of the signing of the contract to prove that the bid winner is committed worth Rp 11.3 trillion — as stated by then-energy deputy minister Mr Arcandra Tahar in 2018.

After the takeover, Pertamina will disburse a US$2 billion investment — around Rp28.6 trillion or S$2.71 billion — for the block until 2025.

“We will continue the ongoing plans, including the application of enhanced oil recovery (EOR) technique,” Pertamina Director Ms Nicke Widyawati stated in a virtual discussion on the Rokan Block handover on 8 August.

EOR refers to a practice of boosting the oil reserve in a well by extracting the volume of oil that previously cannot be retrieved.

Ms Nicke said that the company will continue what PT CPI has done by drilling 161 wells until the end of 2021 and drilling 500 wells in 2022.

As many as 2,869 former workers at the CPI will join PHR following the takeover of the block, she added.

Rokan Block has produced 11.69 billion barrels of oil since its first production in 1951, making it the country’s second-largest oil-producing block after the Cepu Block.

The Rokan Block’s oil production hit the highest of 1 million barrels per day in 1973 when Chevron was then known as Caltex Pacific Indonesia.

The average output of the Rokan Block reached 160,000 barrels per day as of the end of July, accounting for 24 per cent of the national production, said Mr Arifin.

Meanwhile, PT CPI President Director Mr Albert Simanjuntak thanked the Indonesian government for entrusting the company with the oil block’s operations for almost a century, when geologists from the Standard Oil Company of California (Socal) arrived in 1924.

“Our long history started before the independence of Indonesia. Then we cooperated with the Indonesian government, the Riau administration, and the regency. We won’t be able to carry out the exploration safely without their support up until now,” said Mr Albert.

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Indonesia

Riau Islands govt reduces Batam-Singapore ferry fares by IDR 30K to boost tourism

The Riau Islands Provincial Government, in cooperation with ferry operators, has reduced the cost of round-trip ferry tickets on the Batam-Singapore route by IDR30,000 (US$2). This reduction, effective 24 September 2024, follows discussions held from 22-23 September. Officials anticipate further pricing adjustments as part of ongoing efforts to ensure affordability.

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INDONESIA: The Riau Islands Provincial Government and ferry operators have agreed to reduce round-trip ferry ticket prices for the Batam-Singapore route by IDR30,000 (US$2), effective from 24 September 2024.

This decision followed discussions between the government and ferry operators held from 22-23 September 2024.

Junaidi, Head of the Riau Islands Transportation Agency, confirmed the fare reduction in a statement on 24 September.

He explained that the IDR30,000 (US$2) price cut resulted from ferry operators’ calculations and marked the first phase of a broader review of Batam-Singapore ferry pricing.

This initial reduction aims to establish a more suitable pricing structure for ferry services between the two destinations.

Junaidi referred to remarks by Governor Ansar Ahmad, who emphasized the importance of conducting a detailed survey to understand the root causes of high ferry ticket prices.

“As Governor Ansar has mentioned, a survey will be conducted to identify the causes of the high ticket prices to determine the appropriate pricing for Batam-Singapore ferry tickets,” Junaidi added.

One factor contributing to the increase has been the rise in seaport taxes, particularly in Batam, where the tax increased from IDR65,000 (US$4.3) to IDR100,000 (US$6.62).

Additionally, ferry operators cited rising exchange rates, higher fuel costs, increased counter rental fees, and crew salary hikes as key reasons for the surge in prices.

While ferry operators have raised concerns about these pressures, Junaidi stressed that a comprehensive survey would be essential to verify the claims and guide future pricing decisions.

He noted that further steps would be taken once the survey is completed.

Junaidi also addressed ongoing delays in finalizing visa-on-arrival (VoA) regulations for foreign tourists, stating that simplifying the VoA process could significantly impact ferry passenger numbers.

He believes that easing these regulations would encourage more foreign tourists to travel between Batam and Singapore, potentially increasing ferry occupancy rates.

The issue of high ferry ticket prices has been a long-standing concern for local authorities.

Governor Ansar Ahmad had previously announced plans to form an investigation team to address the significant price hikes that have occurred since the COVID-19 pandemic.

The fares for the Batam-Singapore route experienced a sharp increase, with prices doubling after the pandemic.

One-way ticket prices, which were previously between IDR250,000 (US$16.55) and IDR350,000 (US$23.17), surged to IDR500,000 (US$33.1) to IDR550,000 (US$36.4).

In a press release issued on 23 September 2024, Governor Ansar further detailed the fare hikes, stating that round-trip ticket prices, which were once around IDR480,000 (US$31.77), had risen to approximately IDR760,000 (US$50.3).

Governor Ansar highlighted the importance of reducing ferry ticket prices to boost passenger occupancy rates and attract more foreign tourists, aligning with broader efforts to revitalize tourism in the region, which was heavily impacted by the pandemic.

The recent IDR30,000 (US$2) price reduction is seen as a first step in adjusting ferry prices to more affordable levels, with further reviews and negotiations expected to ensure sustainable and fair pricing for the Batam-Singapore route.

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Crime

Singaporean man arrested in Batam for alleged child sexual abuse

A Singaporean man was arrested in Batam, Indonesia, for sexually abusing his 16-year-old stepdaughter. The 50-year-old was apprehended at his residence in Batam on 7 September. Local authorities accused that the perpetrator repeatedly assaulted the victim during his visits to Batam, and the abuse is believed to have lasted for more than two years.

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BATAN, INDONESIA:A Singaporean man has been arrested in Batam, Indonesia, on charges of sexually abusing his underage stepdaughter for over two years.

The 50-year-old suspect, identified only as AH, was apprehended at his residence in the Mutiara View housing complex on 7 September.

As per reported by local media, police alleged that AH repeatedly sexually assaulted his 16-year-old stepdaughter, AF, during his frequent visits to Batam.

According to Senior Police Commissioner Heribertus Ompusunggu, chief of the Barelang precinct police, the perpetrator engaged in sexual intercourse with the victim an estimated 120 times during his weekly trips to the Indonesian island.

The alleged abuse began in June 2022, shortly after AF, who used to live with her grandmother in Karawang, West Java,  moved to Batam to live with her mother.

One day in July 2022, the girl slept in the same room with AH while her mother was in another room.

The police believed that after AH may have gave AF a drink laced with jasmine flowers, he allegedly sexually assaulted her.

On 7 September, the victim’s mother sought help from a friend to escape the house, unable to endure her husband’s violent behaviour and the sexual abuse of her daughter.

The victim’s mother was afraid to report the abuse due to repeated threats from the alleged perpetrator.

The police have detained AH for further investigation into alleged violations of the 2016 law on child protection.

If found guilty, he could face a prison sentence of five to 15 years, with an additional punishment of one-third of the jail term due to his status as the victim’s stepfather.

 

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