Jakarta, InfoPublik – United Arab Emirates (UAE) places its great trust in the business development of energy sector in Indonesia. As much as 11 business agreements most of which are targeted at energy sector have been signed by Indonesia and UAE.
The total estimated investment value from those 11 agreements is at Rp314.9 trillion or US$22.89 billion. In addition to the business agreements, the government of both countries also signed 5 agreements in religious affairs, education, agriculture, health, and counterterrorism fields.
“I greatly welcome and there are 16 agreements that can be done today,” said President Joko Widodo following a bilateral meeting with Abu Dhabi Crown Prince and Deputy Supreme Commander of the UAE Armed Forces Mohamed bin Zayed in Abu Dhabi, on Monday (1/13), as reported by the State Secretariat.
From the 16 agreements, 11 business agreements were signed between both countries covering energy, oil and gas, petrochemicals, port, telecommunication, and research sectors.
One of the business agreements that will be carried out is the construction of Floating Solar Power Plant (PLTS) in Cirata Dam, West Java. Masdar, an Abu Dhabi based renewable energy company, will partner with PT Pembangkit Jawa Bali Investasi (PJBI) to build a 145 megawatt Peak (MWp) Cirata Floating Solar Power Plant.
The investment in the power plant is expected to reach Rp1.8 trillion. Cirata Floating Solar Power Plant is projected to break the record of largest solar power plant in ASEAN after a 132.5 MW Cadiz Solar Power plant in the Philippines.
Aside from renewable energy development, a number of oil and gas business agreements have also been signed, such as developments of Refinery Development Master Plan (RDMP) RU V Balikpapan between Pertamina and Mubadala, crude oil potential in Balongan between Pertamina and ADNOC, and the supply of Liquefied Petroleum Gas (LPG) between ADNOC and Pertamina.
An agreement has also been signed in mineral subsector between Emirates Global Aluminum (EGA) and PT Indonesia Asahan Aluminum (Inalum) for increasing alloy ingot and billet production. It is projected that around 20 thousand tons of additional production will be executed during the trial period, with the current production capacity is at 250 thousand tons.
Business agreements between UAE-Indonesia in energy sector are as follows:
LPG Supply Contract between Abu Dhabi National Oil Company (ADNOC) and Pertamina with the contract value of US$90-270 million;
RIPA (Refinery Investment Principle Agreement) between Mubadala Investment Company and Pertamina to continue the negotiation of ownership up to 49% of PT Kilang Pertamina Balikpapan (KPB) – RDMP RU V shares with the total of cooperation potential value at US$1.6 billion:
MoU between ADNOC and Pertamina on development cooperation of Crude to Petrochemical Project worth US$10.1 billion;
Signing of Power Purchase Agreement (PPA) for Cirata Floating Solar Power Plant between PT PJB and Masdar with investment value projection is at US$129 million;
Addendum to MoU between Emirates Global Aluminum (EGA) and PT Indonesia Asahan Aluminum (Inalum) in order to accommodate the determination of cooperation duration. Melting Furnace Capacity Increase Project, including technology transfer from 250 ktpa (kilo tons per annum) to 300 ktpa. Technical Exchange in Reduction Technology field and Greenfield Aluminum Smelter Project in North Kalimantan with the capacity of 500-1,000 ktpa.
Translator: Wisnu Wardoyo