Five high-profile consortia have expressed their interest to develop the USD $2 billion Java I steam & gas power plant in Muara Tawar, Bekasi (West Java). State-owned utility company Perusahaan Listrik Negara (PLN), owner of this project and the company that is responsible for distributing electricity to the nation's 255 million people, said it is scheduled to tender this mega-project in June 2016. Indonesia's electrification ratio (the percentage of Indonesian households that are connected to the nation's electricity grid) is low at around 82 percent, implying there are still dozens of millions of Indonesians who lack access to electricity.

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The government of Indonesia plans to offer 19 geothermal blocks to investors in 2016 through tenders and direct assignment. Yunus Saifulhak, Chief of Geothermal Power at the Energy Ministry's Directorate General, said eight blocks will be offered through open tenders, while the 11 remaining geothermal power blocks will be given to state-owned enterprises. These 19 blocks are part of a larger package consisting of 27 geothermal blocks with a total combined power capacity of 1,535 megawatt (MW) that is to be offered to private and state-owned investors in the 2016-2017 period.

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A consortium consisting of Indonesia's state-owned oil & gas company Pertamina and Japan-based general trading company Marubeni Corp has teamed up with American multinational conglomerate corporation General Electric (GE) to bid for success in a USD $2 billion power plant project in Bekasi (West Java) tendered by Indonesia's state-owned utility company Perusahaan Listrik Negara (PLN). Reportedly, this 1,600 MW power plant, named Jawa I, is set to become the largest gas and steam power plant in Indonesia.

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The government of Indonesia wants to construct the Bontang oil refinery in East Kalimantan through a private-public partnership (PPP). Sudirman Said, Minister of Energy and Mineral Resources, said construction of the Bontang oil refinery is scheduled to commence in 2017. State-owned energy company Pertamina will be in charge of the project and is now searching for investors to participate in the project which is estimated to require a total of USD $14.5 billion in investment.

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Although Indonesia's B15 biodiesel program, which refers to the government's program to blend 85 percent of diesel with a mandatory 15 percent of fatty acid methyl ester (derived from palm oil), is no success yet, the government is expected to introduce the B20 biodiesel program (raising the mandatory content of fatty methyl ester in biofuel to 20 percent) in early 2016. To support the B20 program, eleven companies are ready to supply biodiesel to state-owned energy company Pertamina and publicly-listed petroleum and basic chemicals distributor AKR Corporindo between November 2015 and April 2016.

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As Indonesia's oil production is expected to rise while a new oil refinery in Tuban (East Java) has started to come online, Indonesia's Ministry of Energy and Mineral Resources targets to stop imports of diesel fuel altogether and cut imports of gasoline fuel by 30 percent in 2016. The refinery in Tuban is owned by Trans Pacific Petrochemical Indotama, which was recently acquired by Indonesia's state-owned energy company Pertamina.

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During his state visit to the USA, Indonesian President Joko Widodo told US President Barack Obama that Indonesia intends to join the Trans-Pacific Partnership (TPP) trade deal. Currently, 12 countries have joined the TPP, including the USA and Japan, thus creating the world's largest free trade area (an area that covers about 40 percent of world trade). By many analysts the TPP is regarded a counterbalance to the big economic influence of China.

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Dalam rangka mendukung rupiah yang sedang lemah, Badan Usaha Milik Negara (BUMN) Pertamina akan memotong pembelian langsung foreign exchange (forex) di pasar sebanyak sekitar 50%. Pertamina bersama dengan BUMN Perusahaan Listrik Negara (PLN) berkontribusi sekitar setengah dari transaksi sehari forex karena perusahaan-perusahaan ini membutuhkan dollar Amerika Serikat (AS) untuk pembelian bahan bakar dan pembayaran hutang luar negeri.

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The new grade of gasoline, called pertalite, has been launched in Indonesia by state-owned energy company Pertamina. On Friday (24/07), this new (unsubsidized) fuel was sold for the first time in the cities Jakarta, Bandung and Surabaya for the price of IDR 8,400 (USD $0.62) per liter. Its debut in 101 gas stations across these three cities is a test (lasting for a few weeks) in order to know consumers’ reaction. Pertalite (90-octane level) is the new produced fuel by Pertamina and will gradually replace the low-octane gasoline known as premium.

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Indonesian state-owned energy company Pertamina raised the price of pertamax, a 92-octane gasoline, by 2.3 percent per 1 May 2015 as the result of recovering global oil prices. On Java, Indonesia’s most populous island, the price of pertamax rose by IDR 200 to IDR 8,800 (USD $0.68) per liter. Outside Java, fuel prices are generally more expensive due to high logistics costs. The price of premium, the low-octane gasoline which was heavily subsidized until the start of the year, was left unchanged at IDR 7,400 (USD $0.57) per liter.

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Shares of Perusahaan Gas Negara, Indonesia's largest natural gas transportation and distribution company, have been performing in a very volatile manner so far in 2018. While in late February 2018 the company's shares had surged 55.43 percent to IDR 2,720 per share since the year-start, some five months later the same shares plunged to IDR 1,525 a piece (down 12.86 percent since the start of the year). What is going on with Perusahaan Gas Negara that can explain this volatile stock performance?

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The severe oil spill in the Balikpapan Bay (East Kalimantan) could lead to sanctions for Indonesia's state-owned oil and gas company Pertamina. Arcandra Tahar, Deputy Minister of Indonesia's Energy and Mineral Resources Ministry, said his ministry is joining forces with the Ministry of Environment and Forestry to investigate the oil spill case. Five fishermen were killed by toxic smoke, while it is feared that severe damage has been done to marine live and the ecosystem in the area.

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Shares of Perusahaan Gas Negara, the largest natural gas transportation and distribution company in Indonesia, are showing spectacular growth in 2018. On Tuesday (23/01) the company's shares surged 8.91 percent to IDR 2,690 a piece. So far this year, its shares have grown a whopping 53.71 percent. What is the story behind this spectacular performance?

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Fuel demand in Indonesia already reached 1.6 million barrels per day (bpd). However, oil refining capacity only stands around 1.1 million bpd, implying that 43 percent of fuel consumption in Indonesia needs to be imported from abroad. Oil refining capacity today is roughly the same as it was 15 years ago, meaning that there has been limited progress in development of Indonesia's downstream oil industry. Without adding refining capacity, Indonesia is on track to become the world's largest fuel importer within the next decade.

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After CEO Dwi Soetjipto and Deputy CEO Ahmad Bambang were removed from their posts at Indonesia's state-owned energy company Pertamina there was some confusion what the real reasons behind this move were. In some local media it was even speculated that the removal of both men was related to a corruption case (something that would not be unimaginable in the case of Indonesia, especially when it involves the government and natural resources). However, the real reason for the removal of Soetjipto and Bambang is, seemingly, simply because they couldn't get along with each other and their poor relationship started to impact on Pertamina's operations.

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Pada hari Senin (21/12), Pemerintah Indonesia meluncurkan paket stimulus ekonomi ke-8. Paket terbaru ini dari serangkaian paket kebijakan - semuanya bertujuan untuk mendongkrak pertumbuhan ekonomi - mencakup tiga kebijakan. Pertama, menghapuskan pajak impor untuk 21 kategori suku cadang pesawat. Kedua, insentif fiskal dan non-fiskal untuk pengembangan kilang minyak. Ketiga, Pemerintah Pusat akan merampingkan dan menyelaraskan proses akuisisi lahan untuk pembangunan infrastruktur di seluruh negeri menggunakan "kebijakan satu-peta" yang baru.

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Indonesia’s state-owned energy company Pertamina and local governments will become the new operators of the Mahakam oil and gas block (located offshore in East Kalimantan) after existing contracts of current operators end on 31 December 2017. The Indonesian government announced on Friday (19/06) that it is to grant Pertamina a 70 percent stake in the Mahakam block, Indonesia’s largest oil and gas block. The current operators of the block are French oil giant Total SA and Japan-based oil firm Inpex Corp, each owning a 50 percent stake.

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The government of Indonesia decided to relocate the planned Cilamaya deep seaport project in West Java to a different location (possibly Subang or Indramayu) as the initially proposed location is too closely located to an oil and gas block operated by Pertamina Hulu Energi Offshore North West Java, a subsidiary of state-owned energy company Pertamina. Indonesian Vice President Jusuf Kalla said that it would be dangerous to construct the seaport close to this block as there is a high likelihood that ships will hit oil and gas rigs.

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Sudirman Said, Indonesian Minister for Energy and Mineral Resources, announced that state- owned energy company Pertamina will become the new operator of the offshore Mahakam oil & gas block in East Kalimantan starting from 1 January 2018, replacing current operators Total E&P Indonesia (the local unit of France-based Total S.A.) and Japan-based Inpex Corporation as existing contracts expire in 2017. The Ministry, Pertamina, Inpex and Total met on Friday (27/03) to discuss the transition process.

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Produksi minyak mentah Indonesia diharapkan untuk berningkat mulai pertengahan Maret 2015 karena sumur-sumur minyak baru mulai berproduksi tahun ini, termasuk ladang minyak Bukit Tua (bagian dari blok Ketapang di Jawa Timur yang dioperasikan Petronas Carigali). Selama dua dekade terakhir produksi minyak Indonesia telah menurun drastis karena ladang-ladang minyak tua mulai jenuh dan kurangnya eksplorasi dan investasi lain di sektor minyak dan gas Indonesia. Pada 2014, Indonesia memproduksi kira-kira 794.000 barrel minyak per hari (bmph).

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