PSN GNR In Tuban Very Strategic, Moeldoko: Needs Evaluation

Dr. Moeldoko during the Ministerial Level Coordination Meeting regarding the Construction of the Tuban Grass Root Refinery (GRR) National Strategic Project in Jakarta, November 9. (Doc KSP)

JAKARTA - Presidential Chief of Staff, General TNI (Ret.) Dr. Moeldoko emphasized that the Grass Root Refinery (GRR) PT. Pertamina International Refinery (KPI) project in Tuban, East Java is very potential and strategic but needs further evaluation. This was conveyed in a coordination meeting with the Coordinating Ministry for Economic Affairs, Ministry of Finance, Ministry of SOEs, Coordinating Ministry for Investment and Maritime Affairs as well as PT Pertamina at Bina Graha Building, Jakarta, November 9.

As one of the national strategic projects, continued Moeldoko, it is necessary to monitor and evaluate the continuation of the project in collaboration with PT Rosneft from Russia. Especially with the current geopolitical international dynamics, Moeldoko reminded the importance of considering the diplomatic situation between the two countries to ensure the progress of the project.

"The problem in funding is urgent, but political tensions now need to be considered carefully because it will definitely affect energy, economy as well as food and most importantly for relations between the two countries," said Moeldoko.

On the occasion, Moeldoko said it was necessary to create several funding schemes that would allow it to be carried out. Furthermore, Moeldoko said that currently the hampered funding problem could not be used as the only reason to stop the project.

"The Ministry of Finance needs to think further about its financial side, assume that the state is present there for financial support for what the benefits are," he said.

However, Moeldoko advised Pertamina to discuss with Rosneft in this matter in order to immediately find the best solution for this project. "In terms of Pertamina, there must be a calculation of profit and loss, but from a bigger side, managing this country must also think about relations between the two countries," he said.

Previously, the PSN of the GRR refinery in Tuban, East Java had problems in the readiness of funding at the Final Investment Decision (FID) stage and in the process of selecting Engineering, Procurement and Construction (EPC) contractors. Responding to this, Moeldoko said the need for further evaluation of related parties in this project, so that recommendations to the President on the PSN can be accounted for. Later we will submit a memo to the President, that this project will still be evaluated," he said.

Meanwhile, Pertamina, represented by the Director of Logistics and Infrastructure, Alfian Nasution, said that his party would coordinate with Rosneft regarding various options in the continuation of this project. We will meet with Rosneft this week, so that we will take their response into consideration too," he said after the meeting with Moeldoko.