TEMPO.CO, Bandung - Susyanto, secretary of the Oil and Gas Directorate General at the Energy and Mineral Resources Ministry, said that participating interests (shares) could only be handed over to regional-owned enterprises, whose 100 percent of shares are owned by regional governments.
“The ministerial regulation is being drafted,” Susyanto said in Bandung on Thursday, November 26, 2015, adding that the new bill would be released by the end of this year.
Susyanto added that the government was in a process of preparing funding solutions to help regions who had difficulties to submit their capital in order to acquire 10 percent of participating shares.
The government has provided at least three options for regional-owned enterprises to acquire participating shares. First, Susyanto revealed, Pertamina would provide loans if the shares were included in Pertamina’s block. Second, Susyanto continued, regional-owned enterprises would be allowed to lend money from the Government Investment Center (PIP) to acquire the participating shares.
“Third, they can lend money from private companies in a business-to-business scheme, instead of shares. In means that they can take loans, instead of shares,” Susyanto added.
Susyanto explained that West Java had been approved to acquire 10 percent of participating shares for the Offshore North West Java. However, Susyanto clarified that the process was hampered by issues with a regional-owned enterprise, whose a portion of its shares are owned by private companies.
West Java deputy governor Deddy Mizwar alleged that central government’s promise to provide West Java with the participating shares was not serious. Deddy said that the provincial administration teamed up with a third party to form a regional-owned enterprise to manage the 10 percent participation shares and gain funding.
“[The central government] must realize the financial condition of each region. Meanwhile, oil and gas exploitation is not a cheap business. So, don’t promise us with the 10 percent [participating shares],” Deddy said.
Earlier, the West Java Provincial administration established regional-owned enterprise PT Jabar Hulu Energi to manage the participating shares. The company’s share ownership comprises 70 percent by the West Java provincial administration, 20 percent by PT Kryo, and 10 percent by PT Jabar Energy and its subsidiary company PT Jasa Sarana.
AHMAD FIKRI
