Chamber calls on Jokowi to choose onshore LNG for Masela

The eastern Indonesia chapter of the Indonesia Chamber of Commerce and Industry (Kadin KTI) has called on President Joko Widodo to choose onshore LNG scheme for the development of Abadi gas field within Masela block in Maluku province, rather than an offshore one.

Kadin KTI?s Head Andi Rukman Karumpa said in a statement on Saturday that an onshore LNG plant will bring about greater benefits for people living surrounding the field.

?If (the LNG plant is) built offshore, the ones who will get benefits are people in Jakarta since the company has an address in Jakarta and the tax will be received by the central government. What about Ambon, Maluku, which is home to the LNG plant?? he asked.

If the LNG plant is built onshore, the trickle-down effects of the project will directly go the local people and it will become an incentive for the growth of industries in the region.

He warned that if the LNG plant is built offshore, the project will be confronted with opposition from the local people. On the long term, it will cause problems for the project.

?We thus expect the President to decide for onshore LNG so that local companies can be involved in the development of the project or act as suppliers,? he said.

By law, the right to decide on the development method of the project ? whether the LNG plant will be built onshore or offshore -- lies with the minister of energy and mineral resources. Minister of Energy and Mineral Resources Sudirman Said has however said the final decision will be taken by the President.

Editing by Johannes Simbolon