Masela Block Development: Jokowi to Hold Talks to End Dispute

KATADATA - Indonesian president Joko (Jokowi) Widodo was scheduled to lead key talks yesterday to end the year-long dispute over development of the Masela Block.

Despite hiring an independent consultant and forming an integrated team to review this matter, the government is still divided between the advocates of offshore floating liquefied natural gas (FLNG) development and those in favour of onshore pipeline development. The dispute was initially triggered by Coordinating Minister of Maritime and Natural Resources Rizal Ramli, who claimed that the FLNG scheme was not economically viable and offered less of a multiplier effect for the surrounding areas compared with the onshore scheme.

Head of the National Planning Agency (Bappenas) Sofyan Djalil confirmed that ministers and government departments had been arguing the pros and cons of each option. This, he said, was a positive, because it shows that the government only wants what is best for the project.

The President echoes this sentiment, emphasising that the Masela Block Project is a large and long-term task. He has asked his cabinet members not to make a hasty decision, to ensure that the project maximises its positive impact on the economic growth of the surrounding areas, which will ultimately benefit the national economy. He also stressed that the government has a constitutional duty to manage all national resources for the good of the people.

(Read more: Masela Block Polemics: Conflict between Rizal and Sudirman continues & Rizal vs Amien in Masela Block)