Burdening The State Budget, Ministry Of Energy And Mineral Resources Auction For The FSO Ardjuna Sakti Ship

ESDM has conducted an auction of State Property (BMN) in the form of Ardjuna Sakti Floating Storage Offloading (FSO). (photo: dock. special)

JAKARTA - The Ministry of Energy and Mineral Resources (ESDM) is reported to have conducted an auction of State Property (BMN) in the form of Ardjuna Sakti Floating Storage Uploading (FSO). With the auction, it is known that the Ministry of Energy and Mineral Resources managed to save up to IDR 3 billion.

This FSO Ardjuna Sakti ship has burdened the state budget since it was handed over to the Director General of Oil and Gas of the Ministry of Energy and Mineral Resources in 2008. The burden on the state budget occurred due to the obligation of the Ministry of Energy and Mineral Resources to pay the cost of handling/substation.

Initially, the FSO Ardjuna Sakti ship was used to carry out a conversion program from fuel to gas. However, along with the implementation of the program, the ship suffered damage. Based on an analysis of the cost of repairs to the ship, it was found that the cost of repairs was very large and not economical.

The non-economic cost of repair resulted in the FSO Ardjuna Sakti ship being declared unfit for use and operation, and heavily damaged in 2010 and its transfer process was proposed in 2012.

The proposed transfer process experienced a very long journey until it was approved by the DPR-RI at the DPR RI plenary meeting which took place on September 20, 2022.

In connection with this approval, PPBMN together with the Directorate General of Oil and Gas and DJKN of the Ministry of Finance immediately followed up with the implementation of assessments and auctions. In accordance with the letter of the Head of the Banten KPKNL Number S-176/KNL.060/2023 dated January 17, 2023 regarding the Determination of the Auction Schedule, the Ardjuna Sakti ship was transferred by auction via the auction website.go.id.

At the time of closing the auction offer, the winner of the auction on the Ardjuna Sakti Ship with a total auction value of Rp. 26,445,180,000.00 on January 31, 2023. In connection with the determination of the winner of the auction, the proof of state revenue as proof of payment of auction value, and the Minutes of Handover (BAST) of goods, the Directorate General of Oil and Gas proposed the removal of BMN through the Secretaryial Letter of the Directorate General of Oil and Gas number 040/95/KPA/2023 dated April 5, 2023 regarding the Report on the Implementation of State Property Auction Results.

On May 15, 2023, PPBMN followed up on the letter with a Decree (SK) on the removal of BMN on the Ardjuna Sakti Ship through Decree number 467.K/BN.07/SJN.A/2023 dated May 15, 2023 regarding the Elimination of State Property in the Form of Equipment and Machinery at the Directorate General of Oil and Natural Gas of the Ministry of Energy and Mineral Resources in Serang, Banten.

With the implementation of this transfer, the Ministry of Energy and Mineral Resources has carried out APBN efficiency of IDR 3 billion as a cost of docking ships every year.