Moeldoko Ensures That LNG Refinery Projects In Masela Must Run

JAKARTA The construction of the LNG refinery in Masela will have a positive impact on the Indonesian economy, especially in the Maluku region. The project will create new jobs and increase regional income.

The Presidential Staff Office also encourages the acceleration of solving the problem of land acquisition for Nustual Field Abadi Masela, so that the USD 19.8 billion project continues.

As is known, land acquisition for the construction of the LNG refinery port in Masela still encounters obstacles. Namely, there is no common ground regarding compensation for land acquisition. Where people still have not received a decision on the value of the location.

The Presidential Chief of Staff, Moeldoko, emphasized that the resolution of the problem of land acquisition of Nustual Island must be based on the urgency (very important) of the LNG Refinery project in Masela.

"We have to look at the urgency of this project. Do not let small problems actually eliminate the urgency and value of the project. This must be found an alternative solution, don't be rigid," said Moeldoko, at the Bina Graha building, Jakarta, Tuesday, October 10.

Moeldoko, who was accompanied by Deputy I KSP, Febry Calvin Tetelepta, said that the LNG refinery construction project in Masela must continue. However, it is not allowed to leave various problems that could disrupt stability.

Currently, he said, BPKP has reviewed the results of the calculation of the location value carried out by the Public Appraisal Service Office (KJPP).

The results of the BPKP review, there are components that have not been calculated by KJPP, especially related to community economic activities. This needs to be considered to be taken into account as additional compensation," explained the 2013-2015 TNI Commander.

Based on this result, continued Moeldoko, all parties agreed that a reassessment would be carried out by an independent institution, and the assessment method was equipped with new data or additional new comparative transactions involving local governments.

"We are trying hard to find a middle ground. We don't want this project (LNG refinery in Masela) not to run. We also don't want this project to cause social problems in the community," concluded Moeldoko.

For information, the Masela Liquid Natural Gas Refinery (LNG) Project in Maluku is one of the National Strategic Projects (PSN). PSN worth US$ 19.8 billion or around Rp. 285 trillion is targeted to produce in 2027.

The Masela Gas project is estimated to be able to produce 1,600 million cubic standards per day (MMSCFD) of gas or the equivalent of 9.5 million tons of LNG per year (mtpa), 150 MMSCFD pipe gas, and 35,000 barrels of oil per day.