JAKARTA - The Ministry of Energy and Mineral Resources (ESDM) has officially set a special price for the management of 20 MMSCFD of natural gas for West Papua Province worth 9.72 ICP (Indonesia Crude Price).
West Papua Governor Dominggus Mandacan said the decision had a positive impact on regional revenues.
"On Monday, I met with the Minister of Energy and Mineral Resources Bahlil Lahadalia. The minister has decided," said Dominggus as quoted by ANTARA, Tuesday, September 30.
According to him, the determination of special prices opens up new opportunities in increasing regional revenue from the oil and gas sector (oil and gas) that invests in West Papua.
This policy is also an important milestone in strengthening regional energy resilience and utilizing gas allocations to support equitable development for the community.
"Later, PT Padoma Uba from BUMD Padoma's subsidiary, which manages natural gas produced by BP LNG Tangguh in Teluk Bintuni Regency," said Dominggus.
He said, after a special price decision from the ministry, the provincial government prepared sea transportation to conduct the first sale of three natural gas cargoes.
The delivery of the three cargoes is the first step in implementing special price policies, as well as marking the direct involvement of BUMD in the oil and gas business chain in West Papua.
"We have agreed, on October 23, 2025, three cargoes were sold," he said.
Head of the West Papua ESDM Service, Sammy Djunire Saiba, explained that 20 MMSCFD of natural gas is a ration given by BP LNG Tangguh to be managed by the provincial government.
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The special policy regarding the selling price of natural gas does not only increase regional revenue, but also the implementation of Law Number 2 of 2021 concerning Special Autonomy for Papua.
"20 MMSCFD of natural gas is different from the efforts of the provincial government to obtain 10 percent of the Participating Interest (PI) funds for oil and gas producing areas," said Sammy.
In addition, the West Papua Provincial Government is also preparing legal, inclusive, and environmentally friendly people's mining governance so that the benefits are directly felt by the community.
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