JAKARTA – Long before Covid-19 torpedoed growth, exports and investment, it had already appeared to Indonesians that policies of resource nationalism come at a high and growing cost to the country, both in capital expenditure and lost income.
The governments of President Joko Widodos trying to take control of Sumatras Rokan Block, formerly the country’s largest oil field, were mentioned in a recent Tempo magazine editorial as a guided takeover he said would result in significant losses for at least the next three years and possibly even longer as the global oil markets return to normal. .
Located onshore in the southern Sumatra province of Riau, Rokan will switch from Chevron Pacific Indonesia (CPI) to state-owned oil company Pertamina when the U.S. companies’ contract expires next year, as part of a national strategy to s ‘appropriate many Indonesian oil companies. and gas assets.
Oil industry experts fear, however, that Rokan will follow the same pattern as the Mahakam offshore gas block in East Kalimantan where production has not yet resumed since the French oil company Total was forced to sell its stake. control at Pertamina in early 2018.
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