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JAKARTA - Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia reminded the Business Competition Supervisory Commission (KPPU) not to build baseless wild perceptions related to the tender investigation of the Cirebon-Semarang (Cisem) natural gas transmission pipeline construction project Phase II.

"Don't build perceptions, we've checked why the ESDM team all works properly according to the rules. Please KPPU if you want to prove it," said ESDM Minister Bahlil Lahadalia in a statement to the media, Saturday, December 28.

Bahlil emphasized that the implementation of the National Strategic Project (PSN) was carried out with the principles of transparency, accountability, and based on Presidential Regulation Number 16 of 2018 concerning the Procurement of Goods/Services of the Government through the Goods/Services Procurement Work Unit (UKPBJ) of the Ministry of Energy and Mineral Resources.

Therefore, the Minister asked the KPPU to carry out its duties based on the principle of presumption of innocence. KPPU should work professionally and not build wild perceptions that have not been proven.

Bahlil said that the KPPU should always convey information to the public proportionally and be supported by clear evidence.

For information, Cisem II is a PSN stipulated through Presidential Regulation Number 109 of 2020. Due to experiencing problems since 2006, the Cisem II project was decided to continue using funding from the State Revenue and Expenditure Budget (APBN) to make it more efficient.

He explained that the decision was a government policy that had been set in the APBN to encourage the use of natural gas for domestic industrial needs by ensuring that the selling price of gas was more affordable. With this scheme, the determination of the toll fee is only calculated based on operational and maintenance costs, so as to increase the competitiveness of the national industry.

The procurement process in the Cisem II project has been carried out in accordance with applicable regulations and closely monitored by the Government Goods/Services Procurement Policy Institute (LKPP) and the Inspectorate General of the Ministry of Energy and Mineral Resources.

"The supervision ensures that all stages run transparently and accountably, so that the continuity of the project is maintained in accordance with the principles of good governance," continued Bahlil.

As part of PSN, he continued, the construction of the Cisem II natural gas transmission pipeline was designed to connect strategic areas in West Java and Central Java with a total length of 245 kilometers with a multi-year contract.

"This project aims to strengthen national energy infrastructure, increase access to more environmentally friendly natural gas, and encourage national economic growth," said Bahlil.

The development of the Cisem II natural gas transmission pipeline will be able to support the gasification program for industries in the Kendal Special Economic Zone (SEZ) of 10 MMScfd and Batang Integrated Industrial Zone (KIT) of 25 MMScfd) Balongan Refinery of 24-44 MMScfd; and also meet the shortage of electricity generation gas needs in the West Java region of 189-200 MMSCfd, as well as encourage the expansion of gas networks for households.


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