Latest news with #PutraAdhiguna
The Star
26-05-2025
- Business
- The Star
Indonesian energy deregulation vow draws global giants
JAKARTA: Global oil and gas giants appear to be taking a renewed interest in Indonesia's upstream oil and gas sector amid the government's push for energy security and promise of deregulation. Putra Adhiguna, managing director at the Energy Shift Institute, told The Jakarta Post on Friday (May 23) that some increase in upstream oil and gas investment had been observed in South-East Asia, driven partly by declining domestic gas production and the looming risk of higher liquefied natural gas (LNG) imports. In Indonesia, this trend is reflected in the anticipated return of major players like Shell, Chevron and TotalEnergies. South Korea's Daewoo Engineering & Construction (ENC) is also reportedly looking to invest around US$1 billion across various industries, including oil and gas. 'The region is responding to the pressure of falling output and rising demand, which could make reliance on imported LNG a costly and risky proposition,' said Putra. The country has been struggling to increase domestic production of ready-to-sell oil and gas, also known as lifting, despite its importance in achieving energy security and self-sufficiency, as envisioned by multiple administrations to cut costly energy imports. This was partly due to aging fields, limited new discoveries, regulatory uncertainties and infrastructure constraints that have hindered production growth in spite of ongoing efforts. During the International Petroleum Association Convention & Exhibition (IPA Convex) on Wednesday, President Prabowo Subianto personally asked his aides to simplify upstream regulations to boost oil and gas output, followed by a threat that he would remove officials who refused to do so. 'It remains to be seen how the President's call for regulatory simplification will translate into action in a sector where clarity and consistency are critical for long-term investment,' Putra said. For nearly a decade, authorities have been formulating clearer and more competitive tax incentives in the oil and gas sector, most notably since the gross split production sharing contract was introduced in 2017. The gross split scheme initially drew criticism for its complexity and unclear tax terms, which dampened investor interest, so the government began revising the framework. In September 2023, the Energy and Mineral Resources Ministry announced it was finalising an updated tax regulation to boost competitiveness and attract upstream investment, but no revision has been introduced since. Amid renewed urgency, upstream oil and gas regulator SKK Migas stated on May 20 that the tax revision would be completed 'soon', with SKK Migas head Djoko Siswanto saying that United States oil major Chevron was interested in exploring and developing sizable oil and gas reserves in Indonesia. According to Djoko, Chevron was seeking to develop blocks with potential reserves of 15 trillion cubic feet (425 billion cubic metres) of gas. He added that the company was in the early exploration stage of evaluating several identified assets, and that the government planned offer blocks in Bali or other eastern regions. He also said around 25 other oil and gas companies had shown interest in investing in the upstream oil and gas sector, some of which had completed joint studies and were preparing to move forward to the next stage. Chevron's Asia-Pacific exploration arm said it engaged regularly with SKK Migas, but according to spokesperson Cameron Van Ast, it was unable to disclose any related details in line with its long-standing policy, Reuters reported on May 20. IPA president Carole Gall said given Indonesia's potential, she was 'not surprised' to see an uptrend in oil and gas investments. 'The collaboration between the government and industry over the past few years has been excellent, and that helps,' she told a press briefing on May 14 during IPA Convex in Jakarta, about global energy companies' reportedly renewed interest in the country. Gall added that the major challenge for 2025 was strategy on maximising oil and gas output to strengthen the energy resilience. 'Given that upstream investments are long-term by nature, increasing output isn't something that can happen overnight. The focus, therefore, isn't just on boosting near-term production, but on ensuring the country reaches the right production levels in the years ahead,' she said. Prateek Pandey, head of APAC oil and gas research at Rystad Energy, said on Saturday that the recent re-engagement of key oil and gas companies signaled a promising future in the sector. While near-term investments are expected to be modest, as they will still be in the exploration phase, the long-term potential will be significant. This year could see South-East Asia welcome the highest number of final investment decisions on gas projects in a decade for a potential increase in output of 18 per cent, according to a report published on April 29 by US-based nonprofit Global Energy Monitor (GEM). According to the report, 2025 could see as many as 13 new gas projects financed in the region: five projects in Indonesia, two in Malaysia, four in Vietnam, one in Brunei and one in Myanmar. Annual production capacity could expand by more than 20 billion cbm if all projects were approved, GEM said, signaling a strategic regional pivot toward accelerating gas development. It noted, however, 'These FIDs have faced a history of delays, so the likelihood of these projects moving forward remains unclear.' - The Jakarta Post/ANN
Yahoo
15-04-2025
- Business
- Yahoo
Nickel production disruption in Indonesia raises supply concerns
Indonesia's Morowali Industrial Park, a nickel-producing hub on Sulawesi Island, is facing a production halt and intensified scrutiny over nickel extraction methods following a landslide last month, reported Bloomberg. The incident has raised concerns about the safety of high-pressure acid leaching (HPAL) methods used in nickel extraction and the future of a critical supply source for the battery industry. While HPAL is cost-effective and less carbon-intensive, it produces nearly twice the tailings, requiring careful waste management to avoid production disruptions. The landslide occurred in a tailings area associated with PT QMB New Energy Materials, as reported by traders with knowledge of the matter. The incident resulted in two fatalities and one missing worker. Nearby nickel producers have also reduced their output, although they preferred to remain anonymous due to the sensitive nature of the information. Indonesia, responsible for more than half of the world's nickel output, faces global supply risks if such outages continue, which is worrisome for battery manufacturers. GEM, the largest shareholder of QMB, responded to a Bloomberg query, stating that the production drop was due to scheduled maintenance and national holidays rather than the landslide. PT IMIP, the park manager, confirmed the landslide and casualties but denied any disruption to output, attributing the incident to prolonged heavy rainfall. Nickel traders in South East Asia and China have expressed concerns about the potential for repeated disruptions, especially with the increasing adoption of HPAL, a method that allows for the use of lower-grade ore for metal extraction but generates high volumes of waste. In the past five years, Indonesia has launched around ten HPAL plants, with Chinese investment and expertise playing a significant role. The rise of HPAL plants, with their associated waste management challenges, could revive concerns over environmental and safety standards. The Indonesian metals sector has witnessed several accidents since the rapid expansion of its nickel industry began a decade ago. The most severe was a smelter explosion in 2023 that killed 21 workers. Australia-based Energy Shift Institute managing director Putra Adhiguna said: 'These issues should not be treated as isolated cases in different companies. They reflect a broader industry problem.' PT IMIP has announced measures to improve standards and reduce geological disaster risks including land reclamation, levelling and reforestation. Despite these efforts, the full impact of the current production loss remains uncertain. Insiders suggest that QMB, with shareholders such as Tsingshan Holding Group and Guangdong Brunp Recycling Technology, will likely experience reduced output in April due to the ongoing government investigation into the accident. In the first quarter of the year, the plant shipped more than 25,000 tonnes of nickel, as per GEM's statement. In March 2025, the Indonesian Mining Association called on the government to rethink its proposal to raise royalty rates on mining products, citing growing operational costs and strained cash flows faced by miners. "Nickel production disruption in Indonesia raises supply concerns" was originally created and published by Mining Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Yahoo
15-04-2025
- Business
- Yahoo
Nickel production disruption in Indonesia raises supply concerns
Indonesia's Morowali Industrial Park, a nickel-producing hub on Sulawesi Island, is facing a production halt and intensified scrutiny over nickel extraction methods following a landslide last month, reported Bloomberg. The incident has raised concerns about the safety of high-pressure acid leaching (HPAL) methods used in nickel extraction and the future of a critical supply source for the battery industry. While HPAL is cost-effective and less carbon-intensive, it produces nearly twice the tailings, requiring careful waste management to avoid production disruptions. The landslide occurred in a tailings area associated with PT QMB New Energy Materials, as reported by traders with knowledge of the matter. The incident resulted in two fatalities and one missing worker. Nearby nickel producers have also reduced their output, although they preferred to remain anonymous due to the sensitive nature of the information. Indonesia, responsible for more than half of the world's nickel output, faces global supply risks if such outages continue, which is worrisome for battery manufacturers. GEM, the largest shareholder of QMB, responded to a Bloomberg query, stating that the production drop was due to scheduled maintenance and national holidays rather than the landslide. PT IMIP, the park manager, confirmed the landslide and casualties but denied any disruption to output, attributing the incident to prolonged heavy rainfall. Nickel traders in South East Asia and China have expressed concerns about the potential for repeated disruptions, especially with the increasing adoption of HPAL, a method that allows for the use of lower-grade ore for metal extraction but generates high volumes of waste. In the past five years, Indonesia has launched around ten HPAL plants, with Chinese investment and expertise playing a significant role. The rise of HPAL plants, with their associated waste management challenges, could revive concerns over environmental and safety standards. The Indonesian metals sector has witnessed several accidents since the rapid expansion of its nickel industry began a decade ago. The most severe was a smelter explosion in 2023 that killed 21 workers. Australia-based Energy Shift Institute managing director Putra Adhiguna said: 'These issues should not be treated as isolated cases in different companies. They reflect a broader industry problem.' PT IMIP has announced measures to improve standards and reduce geological disaster risks including land reclamation, levelling and reforestation. Despite these efforts, the full impact of the current production loss remains uncertain. Insiders suggest that QMB, with shareholders such as Tsingshan Holding Group and Guangdong Brunp Recycling Technology, will likely experience reduced output in April due to the ongoing government investigation into the accident. In the first quarter of the year, the plant shipped more than 25,000 tonnes of nickel, as per GEM's statement. In March 2025, the Indonesian Mining Association called on the government to rethink its proposal to raise royalty rates on mining products, citing growing operational costs and strained cash flows faced by miners. "Nickel production disruption in Indonesia raises supply concerns" was originally created and published by Mining Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Yahoo
10-02-2025
- Business
- Yahoo
US Retreat Sparks New Push to Save $45 Billion Climate Deals
(Bloomberg) -- Nations including Germany and Japan are working to shore up programs aimed at delivering about $45 billion to help developing countries abandon fossil fuels as the US pulls back from a leadership role. Citadel to Leave Namesake Chicago Tower as Employees Relocate State Farm Seeks Emergency California Rate Hike After Fires Transportation Memos Favor Places With Higher Birth and Marriage Rates San Francisco Wants Wealthy Donors to Help Fix Fentanyl Crisis NY Transit Advocate Says Billions in Tax Hikes Would Fix MTA Talks between international partners are taking place seeking to sustain momentum in Just Energy Transition Partnership deals agreed under President Joe Biden's administration that target Indonesia, Vietnam and South Africa, according to people familiar with the details. Germany will replace the US as co-leader of efforts to secure about $20 billion to support coal-reliant Indonesia's energy transition, the Federal Ministry for Economic Cooperation and Development said in a statement. Global backers of JETP programs plan to assess the potential financial impact if the US withdraws all support, said the people, who requested anonymity to discuss private deliberations. A meeting is being scheduled for either this month or March to review the outlook for the wider initiative, which includes Vietnam's roughly $15.5 billion deal and South Africa's $9.3 billion package, one of the people said. Discussions will also consider the implications for possible future funding pacts with nations like Colombia, the person said. 'The impact is manageable, provided the other countries continue,' said Putra Adhiguna, Jakarta-based managing director at the Energy Shift Institute, an Asia-focused think tank. President Donald Trump last month halted some US financial aid aimed at helping developing and middle-income countries respond to the threats of climate change and began the process to withdraw from the Paris Agreement for a second time, signaling the nation's intention to relinquish a role in driving global emissions reduction. A retreat of the US from climate diplomacy, and as a source of funding, is threatening to add new complications to the JETP plans. The programs were initially hailed as a breakthrough when they were first conceived in 2021 because they, in theory at least, solved a crucial problem: How to bring together public and private money to make it economically feasible for large developing nations to wean themselves off fossil fuels. Yet, the JETPs have struggled to deliver many of the intended objectives so far because of slow progress in financing efforts, political leadership changes in Indonesia and Vietnam, and the complexity of shuttering power plants that often have many decades of remaining operational life. The programs also only represent a fraction of the total financing required. Annual energy transition investment topped $2 trillion globally last year, yet that was only about 37% of the total that's needed to put the world on track for net-zero emissions by 2050, BloombergNEF said in a Jan. 30 report. Looming elections in Canada, Germany and France threaten to add further obstacles to the prospects for the JETP deals. 'The EU remains committed, even if a major partner of this JETP — the US — is no longer with us,' Diana Acconcia, director for international affairs and climate finance at the European Commission's Directorate General for Climate Action said Wednesday in Jakarta, referring to Indonesia's deal. Japan will continue to support Indonesia's decarbonization and energy transition, the Ministry of Finance said in an emailed statement. Nations outside the US and global banks are 'still committed to encouraging global emission reduction,' said Paul Butarbutar, head of Indonesia's JETP Secretariat, which oversees the program in the country. 'It is unfortunate that Trump took such a policy, but the others remain committed.' The US had pledged to contribute about $2.1 billion in public financing for the Indonesia deal, almost one-fifth of the total for that segment, according to a 2023 investment plan. Indonesia's President Prabowo Subianto has suggested the nation could hit net-zero emissions as soon as 2050, a decade earlier than previous targets. The nation is holding talks with the World Bank, Japan and other partners on how to continue its JETP program, Coordinating Economic Minister Airlangga Hartarto said Wednesday. Vietnam is finalizing a list of dozens of priority projects to be implemented under its JETP, according to the government. South Africa 'remains fully committed' to implementing its JETP, launched in 2021, and has not been informed about any US plans to end participation, the country's presidency said. Germany and France have already provided €1.5 billion ($1.6 billion) to South Africa's Treasury through their development banks, and with other partners have paid out $630 million in grants, of which $55 million came from the US. A separate €2.5 billion JETP deal for Senegal struck in 2023 doesn't involve the US. Uncertainty over the US position is a concern, though won't necessarily impact the ability of other nations to continue their financing efforts, said Rémy Rioux, chief executive officer of Agence Française de Développement, the agency through which France's contribution to South Africa's JETP is being channeled. 'It's a huge stress for the whole system,' he said. --With assistance from Antony Sguazzin, Sheryl Tian Tong Lee, Eddie Spence, Nguyen Dieu Tu Uyen, Petra Sorge, Eko Listiyorini, Aaron Clark, Ishika Mookerjee and Grace Sihombing. Orange Juice Makers Are Desperate for a Comeback Inside Elon Musk's Attack on the US Government Believing in Aliens Derailed This Internet Pioneer's Career. Now He's Facing Prison Amazon and SpaceX Want In on India's Satellite Internet Market Elon Musk Inside the Treasury Department Payment System ©2025 Bloomberg L.P. Sign in to access your portfolio
