Jakarta – Minister of Energy and Mineral Resources (EMR), Arifin Tasrif, inaugurated the first natural gas flow to the Batang Integrated Industrial Zone (KITB) on Friday, July 26. The event was marked by the opening of a valve to deliver natural gas to South Korean KCC Glass in Batang, Central Java.
The gas supplied is sourced from the Jambaran Tiung Biru Gas Field in the Blora Working Area, as well as the Long Term Plan for the Cepu Working Area and Tuban Working Area. This project is through the National Strategic Project (PSN) Cirebon-Semarang (Cisem) Gas Pipeline Phase 1, Semarang-Batang section.
This step is part of the implementation of Presidential Regulation (Perpres) Number 106 of 2022 concerning Acceleration of Investment through the Development of KITB in Central Java Province. In the regulation, the Ministry of Energy and Mineral Resources is assigned to accelerate the development of gas infrastructure, electricity, and other energy resources to support the development of KITB.
“We ensure the acceleration of meeting energy needs in KITB at competitive prices to create an investment-friendly and sustainable industrial area,” Arifin said in an official statement.
By utilising the Cisem Gas Pipeline infrastructure, the industry can enjoy more affordable gas prices thanks to lower gas transportation toll fees. In addition, the utilisation of domestic gas will reduce the consumption of 3 KG LPG through the household gas network (jargas).
“The use of household jargas can reduce LPG subsidies by IDR0.21 trillion per year and save foreign exchange from LPG imports by IDR0.33 trillion per year,” Arifin explained.
In addition, there are savings in the cost of cooking LPG to jargas of IDR0.05 trillion per year for 300 thousand house connections (SR), an increase in upstream oil and gas revenues of IDR0.44 trillion per year, and PNBP contributions to BPH Migas fees of IDR0.006 trillion per year.
“These economic benefits are very significant in efforts to reduce the burden on the state budget,” Arifin added.
On the same day, the President of the Republic of Indonesia, Joko Widodo, also inaugurated the operation of KITB. The industrial estate, which has a land area of around 4,300 hectares, is expected to be able to create jobs for 250,000 workers. Before the inauguration, the President visited a number of factories in the area, emphasising the government’s commitment to supporting industrial growth and job creation. (Hartatik)
