Tag Archive for: KSP

Developing infrastructure for natural gas transportation requires substantial investment. The high standards of safety in its equipment material, workmanship, design, and construction methods are the reason for this. Consequently, investment in natural gas infrastructure entails significant risk when supply and demand situations are variable and immature. The Cirebon-Semarang Gas Transmission Pipeline project, awarded to Rekind in 2006, has had delays from the beginning. Following Rekind’s resignation, the Government continues the project to regard the Cisem Pipeline as strategic, capable of fostering economic and industrial growth in Java, especially in Central Java. The government utilized the APBN to assume control of the Cisem project, initiating the first phase, designated as Cisem-1, in 2022. Following the completion of the Cisem-1 project in 2023, Lemigas, as the designated asset manager and user, is required to seek a partnership with a business entity that possesses the requisite capabilities and adheres to regulations governing gas transportation operations. This study proposes alternative partnership models between the government, represented by Lemigas, and the business entity, PT Pertamina Gas (Pertagas). This study evaluates and analyzes the most suitable partnership model between Lemigas and Pertagas, taking into account operational costs to maintain affordable gas prices for customers, as well as processing time for partner selection and operatorship alignment with project timelines to ensure the MEMR that the asset is utilized and not abandoned. The KSP (Kerja Sama Pemanfaatan) of BMN (Barang Milik Negara) scheme has been identified as the most suitable option.