Case

Studies:
Delivering FSRU

Dr. Agung Wicaksono (SBM ITB)

SBM ITB ExecuCve MBA – Energy Policy & Decision

27 May 2016
 DECENTRALIZATION AND DEMOCRATIC PROCEDURAL
GOVERNANCE CAUSING BOTTLENECKS
Good

Hard

Difficult

Nearly
impossible

Coordinating Coordinating Coordinating

Minister 1 Minister 2 Minister 3

Minister 1 Minister 2 Minister 3 Minister X

Echelon 1 Echelon 1 Echelon 1 Governor 1 Governor 2 Governor X

Head of Head of
Echelon 2 Echelon 2 Echelon 2 Mayor
District 1 District 2

2
 ENERGY SECTOR IS A CLEAR EXAMPLE OF
BOTTLENECK

FROM .... TO...

VICE
PRESI-
DENT
AVorney
General UKP4

Ministry of Ministry
ENERGY of
& MR Sarulla SOEs
Geothermal
Powerplant
Local
Govern-
ment
PLN

Ministry of Ministry
FOREST- of
RY FINANCE

A geothermal power plant project (largest in the

.....took 27 months to debottleneck
world, subsidy saving of 1 million US$/day) was
under direct supervision of Vice
halted for 20 years.............
President
3
 CASE STUDY 1: FLOATING STORAGE RECEIVING
UNIT (FSRU) JAKARTA
40% listrik JABODETABEK dipasok oleh PLTGU MUARA KARANG.

Selama ini PLTGU tersebut mengkonsumsi BBM dalam jumlah yang

cukup signifikan sehingga APBN makin terbebani oleh subsidi listrik

Pemerintah memutuskan membangun FSRU untuk memasok gas ke

PLTGU MUARA KARANG sehingga listrik yang dihasilkan lebih
murah dan pada akhirnya mampu menekan beban subsidi APBN

FSRU JAKARTA juga akan sangat strategis dalam memasok

kebutuhan gas untuk indsutri di Jawa bagian Barat

Dalam perjalanan pengembangannya, FSRU Jakarta sempat

tersendat dan terancam tidak terealisasi karena tidak
kunjung terbitnya rekomendasi ijin lokasi dari Pemprov
 DEBOTTLENECKING FSRU

Project Location :
Muara Karang, North Jakarta
Coordinate:
6.108559 LS, 106.781239 BT
Site Monitoring : Oct 13,2010

Problematic
Status: 6.108559 LS, 106 781239 BT

•  Unit locaFon in the area of PLN

Muara Karang was defined

•  Ministry of TransportaFon did

not released the locaFon
permit pending
recommendaFon from
Governor of DKI Jakarta

•  ReclamaFon Plan in North

Jakarta Coast threatens the
5
FSRU development 5
 DISCUSSION QUESTIONS
•  What are the soluFon opFons to the conflicFng policy/
issue between central and local government? What is the
win-win soluFon?

•  Should DKI Jakarta drop the reclamaFon plan or conFnue

the plan?
–  Analyze the advantages and disadvantages of reclamaFon plan.
–  If they conFnue, how about the FSRU project? What are the
opFons?

•  What is the best strategy for UKP4 to communicate with

the local government and Ministry of TransportaFon?
 BOTTLENECK: MUST BE SOLVED WITH
ESCALATION
No FSRU!
Jakarta loss
No 60% power! ESCALATE!
AMDAL,
no Permit

Menko Menko
Menko Kesra
Ekonomi. Polhukam

Menhub MenESDM MenLH Mendagri

No Governor Gubernur
recommendation, Conflict with DKI Jakarta
no AMDAL reclamation
plan
7
 FLOW DEBOTTLENECKING FSRU JAKARTA UNTUK MENGAMANKAN PASOKAN GAS JAWA
BAGIAN BARAT DAN MENGURANGI DEFISIT APBN

Debottlenecking Workflow Pemerintah

Feb-2010
Monitoring dwibulanan b a Pengembangan Floating
dan evaluasi INPRES 01/2010 Mar-2010 Storage Receiving Unit
mengidentifikasi (FSRU) Jakarta menjadi
sumbatan pada FSRU Apr-2010 salah satu Prioritas
Jakarta untuk pertama kali Nasional dan menjadi KPI
(e.g. ijin dari Provinsi DKI). 1 May-2010 di INPRES.

Bottleneck dan Opsi c

Jun-2010 Perijinan
e dikeluarkan,
solusi dipaparkan di
hadapan penyusun Jul-2010 dukungan pemerintah
untuk pasokan dan
kebijakan di Rapat
Wapres 2 Aug-2010 pemanfaat gas untuk
FSRU diterbitkan
Penentuan target Sept-2010
dan pelaporan kemajuan d
Head of Agreement
debottlenecking FSRU
Oct-2010 f untuk pembelian dan
Project melalui
penjualan gas
penerbitan surat Nov-2010
peringatan ke K/L ditandatangani dan
Penanggung jawab 3 Dec-2010
penundaan proyek dapat
dihindari

8
 FLOATING STORAGE RECEIVING UNIT (FSRU)
INAUGURATED BY PRESIDENT ON 6 DECEMBER 2012

Issues idenFfied in Aug 2010

FSRU inaugurated in Dec 2012

9
 BENEFIT OF FSRU FOR THE COUNTRY

•  Full on-stream 1 September 2013

(260 BBTUD)
•  Fuel saving worth 2.4 million USD/
day
10
 Experience Sharing
from Guest Lecturers

1.  Eka Satria (Friday, 27 May 2016, Session 2)

–  Development Director, PT. Medco Energi Internasional

–  Case of Donggi Senoro

2.  Dr. Fahmy Radhi (Friday, 3 June 2016, Session 3)

–  Associate Professor University Gadjah Mada
–  Case of Oil & Gas Governance Reform Team 11
CASE OF DONGGI SENORO: FINAL INVESTMENT DECISION (FID) ON 31 DEC
2010 – A PROJECT REALIZED AFTER 30 YEARS
•  Donggi Senoro will become the 4th
LNG center in Indonesia by 2014
•  Total GOI revenue 7.5 billion US$ for
MATINDO
13 years, ca. 600 million US$/year.
K AND DSL
MALEORAJ
A GAS NG •  Total gas produced is 335 mmscfd
FIELDS (LNG) and 85 mmscfd (Fertilizer and
SE
electricity)
NO
RO
GA
•  Total investment is US$ 3.4 billion
DONGGI S
AND
MINAHAK
FIE •  This investment monetizes oil and
LD
I
GAS
gas reserve which has not been
FIELDS
realised for more than 30 years
•  HOA/SPA overall sales of 2 million tons/
year of LNG has been signed by buyers
from Japan and Korea
•  Alocation of gas for domestic market for
PAU (fertilizer) and PLN
•  Construction will create more than
5000 jobs, and 500 people will be
A project stalled for years, moving fast after key employed during operation
decisions made by VP Boediono assisted by UKP4

HOA: Head of Agreement; SPA: Sales Purchase Agreement; PAU=Panca

Amari Utama, MMSCFD: Million Standard Cubic Feet per Day