Indonesia Gas Research Articles

ANALISIS PENURUNAN TARIF PAJAK PENGHASILAN BADAN TERHADAP KEEKONOMIAN KONTRAK BAGI HASIL GROSS SPLIT DAN MULTIPLIER EFFECT BAGI PEREKONOMIAN PADA KEGIATAN HULU MINYAK BUMI DI INDONESIA

Analysis of declining income tax rate of economics on production sharing contract gross split and multiplier effect for the economy in upstream activity in Indonesia describes about Indonesia’s Government announces regulation of production sharing contract gross split in upstream activity for contractor to invest in oil and gas in Indonesia. Due to the pandemic of COVID-19, the Government of Indonesia announced another regulation in regard to income tax rate reduction. This has positively affected the economics on NPV and IRR of contractor and has triggered multiplier effects for the economy in general. Sensitivity analysis is used to calculate the effect of income tax rate reduction for the economics in gross split and multiplier effect. This research has shown that 1% of declining income tax rate affects US$29,333,000 of NPV, 0.3% of IRR, US$20,533,000 Gross Domestic Product and 2,933 jobs in pessimistic scenario; US$61,107,000 of NPV, 0.5% of IRR, US$42,775,000 Gross Domestic Product and 6,111 jobs in moderate scenario; and US$92,881,000 of NPV, 0.6% of IRR, US$65,016,000 Gross Domestic Product and 9,288 jobs in optimistic scenario. 

Development of Natural Gas Hub Network Based on Specific Total Annual Cost in East Java Region

Natural Gas is one of fossil fuel energy with the lowest CO2 emission and has been widely used in Indonesia. However, the absorption of natural gas in Indonesia is still not optimal. Several regions have natural gas supply above the region’s needs and some regions otherwise. The solution to these problems is to create a coordinated gas network in a system that called the hub method. In this method, all producers send their gas to the hub or collection point, then the gas is sent from the hub to consumers. Later a regasification station and LNG plant were connected into the hub. With this method, the problem of excess gas supply and lack of natural gas can be overcome. In this study, the natural gas network was developed by using hub method modelling with the case study in East Java. The first model is the grassroots model which assumes there is no natural gas network in the region. The second model is a combined model that was done by modifying/adding pipelines from existing pipelines. The two models were optimized by minimizing the total annual cost (TAC) needed which includes the cost of making and operating pipes and compressors. From the results obtained, the specific TAC which is the TAC divided by annual gas supply capacity from the grassroots, existing, and combined models are US$ 1.52/MMbtu, US$ 1.50/MMbtu, and US$ 1.44/MMbtu, respectively. Therefore, the combined model is the most optimal based on specific TAC.

The use of gross split contract scheme in economic analysis of shale gas field at meliat formation in Tarakan Basin

Due to the low supply and increasing demand for natural gas in Indonesia, the government has decided to develop other resources such as shale gas. The Meliat formation in the Tarakan Basin has a shale-gas potential for which 3.8 TCF is technically recoverable with 25.1 TCF risked in place. This study examines the economic impact of the gross split contract scheme on the development of this shale-gas field. Our model leverages three flow-rate profiles, comprising a low-production profile wells having an initial production (qi) of 50 mmcf/mo, a medium-production profile wells of qi = 125 mmcf/mo and a high-production profile wells of qi = 200 mmcf/mo. We used US models and the nearest field in the Tarakan Basin as a benchmark in making investment costs for development. Sensitivity analysis was conduct for the production profile, drilling costs and wellhead gas prices. Gross split contracts have a net present value (NPV) > 0 and an individual rate of return >10% on medium and high-production profile wells. The analysis showed that the production profile is the most substantial factor that is affected by the NPV increase. As a result, the indicator of NPV reaching positive is when the gas price sets at $9.24/MMBTU for medium-production profile wells and $6.43/MMBTU for high-production profile wells.

Konstitusionalitas Pengelolaan Migas dalam Mewujudkan Kedaulatan Energi Indonesia

<p><em>This study aims to explain and analyze constitutional oil and gas governance in the context of creating the welfare of the Indonesian people. This research is a normative study, using secondary data in the form of primary, secondary and tertiary legal materials. The results of the study found that the constitutionality of Indonesian oil and gas management is regulated and contained in the oil and gas laws and regulations which give Pertamina a dual function as operator and regulator, while the policy function is carried out by the government. This management violates the constitution and the principle of state control or state sovereignty over oil and gas as stipulated in the 1945 Constitution which is then spelled out in statutory regulations in the oil and gas sector. Another finding is that the management of oil and gas in Indonesia is still unable to have a positive impact on the Indonesian people and is detrimental to state finances. The current management is very dominated by foreign parties because the Indonesian oil and gas sector is controlled by foreign companies up to 89 percent or the potential for state financial losses due to the imposition of "cost recovery" in the oil and gas sector that is not exactly Rp 345,996 trillion rupiah per year or 1.7 billion per day.</em></p>

Cooperation Of Indonesia - Iran In The Oil And Gas Energy Sector 2015-2017

This research is conducted to discuss about the Cooperation between Indonesia and Iran in oil and gas energy sector period 2015-2017. This research uses qualitative research method with descriptive approach type. The purpose on this research is to explain the shape of cooperation between Indonesia and Iran in oil and gas energy sector. This research also uses bilateral cooperation theory, national interest theory, and energy security concept. From this research, According to the result from this research, the cooperation between Indonesian and Iran in oil and gas energy sector in the period of 2015-2017, the first is Purchasing of Liquified Petroleum Gas (LPG) and Crude Oil form Iran with Competitive Price, second, Oil Refinery Development located in Situbondo (East Java) and the last is Management of Ab-Teymour and Mansouri field. With this cooperation, Indonesia has achieve national interest because the production of oil and gas in Indonesia is increased and the people requirement of oil and gas can be fulfilled. Then in this research, it is also known that the cooperation between Indonesia and Iran in the energy sector will continue even in the wider sector again.

Quantitative Risk Assessment of LNG Terminal

According to the report of Agency for the Assessment and Application of Technology of Indonesia in 2019, it is stated that the demand for natural gas in Indonesia is predicted to increase from 1,516 Billions Standard Cubic Feet (BSCF) in 2017 to 4,723. BSCF or increase by an average of 3.5% per year in 2050. The most effective way in distributing natural gas nowadays is in the form of LNG. A national gas company together with a port company planned to build an LNG Terminal in a port area of Semarang, Central Java. This terminal will occupy the area based on the ultimate plan of the port which allocates the land expansion area of ± 5,200 m2 as liquid bulk area. The existing terminal is already being used as fuel storage for Methanol and High Speed Diesel (HSD). The designed LNG Terminal facilities consist of storage tanks with a capacity of 10,000 m3, LNG marine loading arm, filling stations, and equipped with jetty that capable to serve 22,000 m3 LNG vessel with length up to 160m. This paper addresses on the assessment of risk that may occur on the designed LNG Terminal. The risk assessment is carried out in several stages, beginning with identifying hazards using Hazard and Operability (HAZOP) followed by analysing the frequency of hazard using Fault Tree Analysis (FTA) and Event Tree Analysis (ETA) methods to find out the type potential hazards and its frequency. The next stage is the analysis of the consequences using fire modelling method is carried out. The level of risk is represented by mapping the result of frequency and the consequence analysis into f-N Curve according to UK-HSE. Mitigation by means of Layers of Protection Analysis (LOPA) is carried out if the risk is laid in unacceptable region.

GOVERNMENT'S NEW POLICY ON THE ARRANGEMENTS OF PARTICIPATING INTEREST

The Oil and Gas Ministerial Regulation Number 37 of 2016 concerning Provisions for a 10% (ten percent) "Participating Interest" offer in the Oil and Gas Working Area has the aim of increasing the participation of district local governments through ownership of "participating interest". For this reason, this research is needed on the arrangement of "Participating Interest" in the management of Oil and Gas in Indonesia, constraints on implementing "Participating Interest" in the management of Oil and Gas in Sampang Regency and new policies to resolve problems regarding "Participating Interest".The research method used is Applied Legal Research, using statute, case approach, and a conceptual approach. The result of this research is that the implementation of the Regulation of the Minister of Energy and Mineral Resources regarding the distribution of the 10% profit sharing in Sampang Regency has not been implemented. Therefore, a review of the ESDM Ministerial Regulation must be conducted regarding the provision of PI through BUMD and the participation of the private sector

The Investment of Upstream Oil and Gas in Indonesia

Direct investment is expected to be a source of financing for the current account deficit in Indonesia's Balance of Payments. One of the contributors to the current account deficit is the oil and gas trade balance. Therefore, this study will focus on direct investment in the upstream oil and gas sector. This study will examine the impact of implementing regulations related to restrictions on costs that can be claimed to the government and economic factors that include prices and costs per unit of oil and gas on the upstream oil and gas investment. The study was conducted using micro data from 33 oil and gas companies in Indonesia, with a data period 2005-2018. The analysis model used is panel data regression. Empirical results show that the implementation of regulation as well as price per unit (lag-2) have a significant and positive correlation to the upstream oil and gas investment. While operational cost per unit (lag-2) have a significant effect with a negative correlation after the implementation of the regulation.

STRATEGY OPTIMAL PROFIT COMPANY ACHIEVEMENTS IN ENERGY SECTOR (CASE: PT XYZ)

Abstract
 XYZ is an oil company active in the exploration, processing and sale of oil products and gas in Indonesia. The company currently requiresstrategy that would encourage businesses to be better. The method used in this research is SWOT and QSPM, while the data used are primary and secondary data. The results of this study showed that XYZ company offered five alternative strategies that are expected to drive corporate performance becomes better, among others, 1) Improving the resulting still large exploration potential of existing resources. 2) Develop the LNG business as a manufacturer. 3) Improving the competitiveness of the processing business. 4) Conducting investigations in order to support the realization of the theme of "aggressive upstream, midstream and downstream profitable" 5) Doing continus improvement in the management process.
 Keywords :Strategy, SWOT, QSPM

The Development of Non-Conventional Oil and Gas in Indonesia

Oil and gas fuel from unconventional types of reservoirs was the development of alternative sources in addition to oil and gas fuels from conventional type reservoirs that can be obtained to meet domestic needs. The development of unconventional oil and gas reservoirs has developed rapidly outside Indonesia, such as in North America and Canada. One type of unconventional oil and gas reservoir was obtained from shale rock reservoirs. Hydrocarbon shale produced from shale formations, both source from rock and reservoir. This unconventional hydrocarbon has a big potential to be utilized. In this study, an analysis of the development of unconventional oil and gas from Shale Hydrocarbons carried out in Indonesia. This research included the distribution of shale reservoir basins, the number of unconventional shale reservoir resources, factors affecting the development of unconventional oil and gas in shale reservoirs in Indonesia, efforts made by the government to promote exploration activities, exploitation of shale reservoirs in Indonesia, and existing regulations for non-conventional oil and gas. The development of unconventional oil and gas reservoir shale needed to be developed immediately and will attract investors to meet domestic needs for renewable energy needs. From the geological data obtained, there were 6 basins and 11 formations that analyzed for commercialization. Tanjung and Batu Kelau Formation was a prospect formation from 4 desired data categories. In terms of regulation, it still needed improvement to increase the interest of upstream oil and gas entrepreneurs in the unconventional oil and gas shale reservoir. Research in the field of unconventional oil and gas exploitation technology for hydrocarbon shale needed to be improved.

Intelligent LPG Gas Leak Detection Tool with SMS Notification

Gas is a molecule that is not bound, formless, invisible and can turn into search or solid at certain temperature pressures. LPG gas is one of the needs for industry and household needs, namely for cooking. LPG gas in Indonesia is the cause of many fires, a factor that often causes LPG gas fires is a damaged gas regulator. Therefore prevention and security are needed to minimize fires. Seeing this and given the technological developments, an intelligent Arduino-based device was created that was able to overcome this problem. This tool is equipped with MQ-2, SIM800L, and buzzer gas sensors. In an embedded device the system that can convert input data received from the sensor Mq-2 sensor works to detect propane and butane gas, then the system will send the actual data in the form of short messages (SMS) to the mobile number that has been registered into the system. Besides being able to send SMS the system also emits a sound that is generated from the buzzer

The Transnational Role of Foreign Companies in the Upstream Sector of Oil and Gas in Indonesia: pre-Gross Split Mechanism

This article aims to explain how and why foreign oil and gas companies carry influence over the government in the upstream oil and gas sector. It looks at the troubling issue of domination in Indonesia particularly before the Gross Split mechanism was introduced. From a transnational point of view, states and non-states continuously attempt to overpower the other to gain the most from this industry. Although the roles and obligations of foreign oil and gas companies are strictly regulated, domination is still visible in areas of cost recovery to add to the weak domestic market resulting in an asymmetric competition. Market failures have become increasingly alarming as liftings continue to fail to reach the national quota. Using the introduction of the Gross Split mechanism as a turning point, this article looks back at how transnationalism has translated into this sector. This article is of the view that the lack of effort to enrich knowledge bases, enforce the adoption of appropriate technology and prepare its domestic market for healthy competition, has brought it further away from addressing its underlying issues.

Forecasting the Export and Import Volume of Crude Oil, Oil Products and Gas Using ANN

The purpose of this study is to see the development of the volume (value) of exports and Imports of oil and gas in Indonesia in the form of estimated results for the coming years. Research data was taken from the Central Statistics Agency and the Indonesian Customs Service. Data is divided into 7 variables, namely; In the year, crude oil exports, crude oil Imports, oil exports, oil Imports, gas exports and gas Imports. The application of the method for estimating the volume of Crude Oil, Oil Products and Gas export Imports is the ANN backpropagation algorithm with 4 network architectural models namely; 12-5-1, 12-8-1, 12-10-1 and 12-14-1. The best network architectural model is 12-5-1 with an accuracy of 83% and MSE 0.0281641257. The minimum error used is 0.001-0.05 with a learning rate of 0.01. While the activation function used is bipolar and linear sigmoid with gradient descent training function.

Coalbed methane development in Indonesia: Design and economic analysis of upstream petroleum fiscal policy

Due to increasing demand for natural gas in Indonesia, the Government now promotes exploration for coalbed methane (CBM). Currently, Indonesia has 453 trillion cubic feet (TCF) of CBM reserves. However, CBM development in the country is still in the exploration phase, with significant under-investment. To attract investors, a tailored Production Sharing Contracts (PSC) regime is required. Based on a combination of Factor Analysis (FA), Discounted Cash Flows (DCF) and Parameter Sensitivity Analysis, the research explores an optimal scenario of a company's share of revenue that optimised CBM development contracts. We find that a combination of 5 years straight line depreciation (SLD), 5% First Tranche Petroleum (FTP), 78% Contractor Share (CS) and 35% income tax best spreads the risk of CBM development and exploitation between the government and the contractor. This combination is a more suitable PSC regime for developing CBM in an early stage of the industry. Therefore, the Government must cede some taxes during exploration to incentivise CBM development. Three PSCs regimes are thus required to fully develop and exploit CBM, including exploration, transitional and exploitation phase PSCs which better match contractor risks and returns and ensure reasonable certainty of contractor cost recovery.

The Use of Big Data in The Oil and Gas Upstream Industry

A study has been done to perceive the uptake and impact of Big Data in the exploration and production of oil and gas in Indonesia compared to Norway. Interviews were conducted to officials in the Ministry of Energy and Mineral Resources (MoEMR) and the state regulator, SKK Migas. In both industries, more data is being generated more than ever in exploration, production, drilling, and operations, indicating potential application of Big Data. However, approach towards data has remained classical with physical models in opposed to common Big Data approach, which is data-driven analytics. Several impacts of Big Data in both industries are highlighted, including new demand for data analysts, the need for regulations surrounding cyber-security, improvement of safety and environment (which hasn’t been considered in Indonesia), and growing need for more trust and regulations towards open data. Open data in the two industries has seen two different trajectories with Indonesia only implementing it very recently, while the NCS has seen open data drives competition since 1999. This study produced recommendations for the government of Indonesia on open data and how uptake and application of Big Data analytics in EOR could potentially increase national petroleum production to desired levels.
 Keywords: Big Data, open data, oil and gas in Indonesia, Norway Continental Shelf, data analytics, EOR

The Legality of Oil & Gas Production Sharing Contract Gross Split Scheme

As an oil producing nation, Indonesia embodied its authority to manage its oil resources through article 33 paragraphs 3 of The Republic of Indonesia Constitution 1945. Regarding the article, this means that the state has the authority to manage Indonesian natural resources, directly or indirectly, through other public and/or private institutions and the profit of such activity shall be for the benefit of the people. This granted the state to appoint other institution, including a National/International Oil Company (NOC/IOC), to manage the exploration and production of oil, as that particular activity is regarded as a high risk and high capital business. In order to do so, according to Law no. 22 2001, the state may appoint a NOC/IOC through a production sharing contract. In this research, it is founded that the regulation that governed a production sharing contract with the gross split mechanism—Ministry of Energy and Mineral Resources Regulation No. 8 2017 jo. Ministry of Energy and Mineral Resources No. 52 2017—does not have a strong legal basis. In overall, the management of oil and gas through the gross split mechanism does not gives a maximum benefit for the state, and does not attract the IOC/NOC interest to explore and produce oil and gas in Indonesia. Therefore, in this paper, the reviewing of oil and gas management through a gross split mechanism is recommended.
 Keywords: management, gross split scheme, income taxes

Algoritma FP-Growth untuk Menganalisa Frekuensi Pembelian Gas Elpiji 3 Kg

The use of gas in Indonesia is a more profitable alternative, one of which is the oil conversion program, LPG (liquefied petroleum gas). UD.Maju Bersama, which is a distribution agent for 3 Kg LPG gas for household needs, so far because of the many requests, of course LPG agents like this need to forecast the frequency of purchases to find out if the sales have been sold as optimally as possible and stocks can be provided well and supplies adequate for consumer demand. this problem can be solved by applying one of the Datamining techniques which is using the FP-Growth Algorithm method to find out the Frequency of Purchase of 3 Kg LPG Gas. Frequent Pattern Growth (FP-Growth) can be used to determine the set of data that most often appears (frequent itemset) in a data set. The results of data processing purchases at the Elpiji UD base. Forward Together the most sold or purchased values ​​at week 1 and 2 on each month with the highest value support 66.67% confidence 100.00%. the results can help base owners to make decisions on gas supply so that they can be used to increase the amount of supply from distributors to agents and increase profits with support and confidence.

Politics of Law on the State Control of Oil and Gas in Indonesia: Gas Liberalization and the Hesitancy of Constitutional Court

This study aims to examine in depth the legal political state control over oil and gas in Indonesia. This research is a normative law by secondary law. Based on the research can be argued that the existence of Act No. 22 of 2001 on Oil and Gas can’t be separated from other state intervention. The substance oil and gas law dictation by IMF and USAID. Consequently oil and gas law is characterized by a liberal. It eliminates the mean of state control over oil and gas in Indonesia. The Constitutional Court as a judicial institution that is given the authority to judicial review of the constitution less did his part well. The Constitutional Court only eliminated some arrangements liberalization in the Act.

THE INTERNATIONAL LEGAL REVIEW OF THE MANAGEMENT OF OIL AND GAS IN INDONESIA

Abstract This research aims to determine the regulations of international law and the national law on the management of oil and gas in Indonesia. This research was conducted in several related Institutions in Jakarta, such as the Ministry of Energy and Mineral Resources, Directorate general of Oil and Gas, Ministry of Foreign Affairs and Pertamina Jakarta. This research conducted field research method, to find out the primary data through interviews with several resources who have competent research above objects, also used literature research method to find out the secondary data through the documents related to the object of research. The implementation of the cooperation contract adopting the system of the national sovereignty, in the implementation, each country has a different forms according the development of the contract system of oil and gas. Keywords: Contract, Oil and Gas in Indonesia

Kinerja ekspor gas dan hubungannya dengan investasi asing sektor gas di Indonesia

This study aims to analyze the performance of gas exports and their relationship with foreign investment in the gas sector in Indonesia. The data used is time series data from 1995-2011. Data is sourced from the Investment Coordinating Board, Department of Energy and Mineral Resources, Bank Indonesia and the Central Statistics Agency. Data analysis using multiple linear regression and Pearson correlation. The results of the study found: 1) the average development of the value of Indonesian gas exports was 15.27 percent per year. The average contribution of gas exports to Indonesia's oil and gas exports is 45.69 percent per year. The average balance of trade of Indonesian gas products is US $ 8.07 billion. The role of gas exports on Indonesia's economic growth shows an average increase of 3.86 percent per year; 2) Factors that have a significant effect on Indonesia's gas exports are total domestic consumption, gas export prices and exchange rates. There is a negative relationship between the balance of trade of gas products and foreign investment in the gas sector. This means that if the balance of trade value of gas products increases, foreign investment in the gas sector will decline