Minister Of Energy And Mineral Resources Inaugurates Initial Gas Flow To Batang Integrated Industrial Estate

Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif. (Photo: Maria Trisnawati)

JAKARTA - Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif inaugurated the first natural gas flow to the Batang Integrated Industrial Zone (KITB) marked by the opening of the valve to flow natural gas to PT KCC Glass from South Korea in Batang, Central Java, on Friday 26 July.

The flowing gas comes from the Jambaran Tiung Biru Gas Field, Blora Working Area and Long Term Plan for the Cepu Working Area (Cendana - Old Alas Field) and Tuban Working Area (Sur-2 Field) through the Cirebon-Semarang Gas Pipeline (CISEM) National Strategic Project (PSN) Phase 1 Semarang-Batang Section.

"By utilizing the Cisem Gas Pipe infrastructure, the benefit that the industry will get is that gas prices will be more affordable with a lower toll fee for gas transportation," said Arifin, quoted on Saturday, July 27.

In addition, it will meet domestic gas needs for industry, power plants, commercial and households. Then it will reduce the consumption of 3 KG LPG through a household gas network (SR) so that it will reduce LPG subsidies by IDR 0.21 trillion per year and save foreign exchange from LPG imports by IDR 0.33 trillion per year.

"In addition, there will be savings in LPG cooking costs to Jargas of Rp0.05 trillion per year for 300 thousand SR, upstream oil and gas revenue of Rp0.44 trillion per year, and PNBP for BPH Migas contributions of Rp0.006 trillion per year," he said.

For information, on the same day the President of the Republic of Indonesia Joko Widodo inaugurated the KITB operation which has a land area in planning around 4,300 hectares which will be divided into several phases. Prior to the inauguration, the President will also review a number of factories in KITB. Meanwhile, the government also targets KITB to open job opportunities for 250,000 workers.