Government Starts Building Cisem Gas Pipeline Worth IDR 1.17 Trillion, Target Is Completed In 15 Months

JAKARTA - The government is starting to build a natural gas transmission pipeline for the Cirebon to Semarang (Cisem) section for the first phase of the Semarang to Batang section worth IDR 1.17 trillion.

Director General of Oil and Gas at the Ministry of Energy and Mineral Resources, Tutuka Ariadji, said that the Cisem gas pipeline project aims to strengthen domestic gas infrastructure.

"The construction of the Cirebon-Semarang (Cisem) transmission pipeline is part of the transmission pipeline interconnection plan between the transmission pipelines of Sumatra, West Java and the transmission pipelines of East Java," said Tutuka in a press release, Wednesday, May 18.

This interconnection can strengthen the supply chain of natural gas that is adequate and accessible to the public at affordable prices in a sustainable manner, especially for the needs of the existing industrial sector along pipelines and industrial areas that will soon operate in the Batang Integrated Industrial Estate, Special Economic Zones. Kendal, and the Wijayakusuma Industrial Estate Semarang in Central Java, as well as other industrial areas that are in the planning process.

"Availability of adequate and sustainable infrastructure is an urgent need to support the implementation of national development in order to improve the national economy, improve the welfare of society and increase Indonesia's competitiveness in global competition," he said.

Meanwhile, Director of Planning and Development of Oil and Gas Infrastructure Noor Arifin Muhammad added that the Cisem gas pipeline construction project is planned to be carried out for 15 months.

"There were 86 prospective providers who registered and the results of the pre-qualification of seven prospective providers were declared to have passed. Furthermore, in the results of the technical qualification process, there were three prospective providers who passed the selection and selection of the ranking of prospective providers based on a combination of technical offer value and price," he explained.

For your information, the Cisem natural gas pipeline construction project is a National Strategic Project (PSN) based on Presidential Regulation Number 3 of 2016 concerning the Acceleration of Implementation of National Strategic Projects as has been amended several times, most recently by Presidential Regulation Number 109 of 2020 concerning the Third Amendment to Presidential Regulation Number 3 2016 concerning the Acceleration of the Implementation of National Strategic Projects.

This project is implemented through a multi-year contract for the 2022-2023 fiscal year and uses a design and build contract mechanism.