Home ECONOMY Dispute with Malaysia, Ministry of Energy and Mineral Resources Discusses Ambalat Block with the Ministry of Foreign Affairs

Dispute with Malaysia, Ministry of Energy and Mineral Resources Discusses Ambalat Block with the Ministry of Foreign Affairs

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Dispute with Malaysia, Ministry of Energy and Mineral Resources Discusses Ambalat Block with the Ministry of Foreign Affairs

JAKARTA, Timerilis.com – The Ministry of Energy and Mineral Resources (ESDM) continues the discussion of the Ambalat Block dispute in the Working Area (WK) located in the Makassar Strait with the Ministry of Foreign Affairs (Kemenlu).

The Ambala Block is currently in a land dispute between Indonesia and Malaysia because there are overlapping claims to control the block. The block holds oil and gas potential that can be utilized for the next 30 years.

Tutuka Ariadji, Director General of Oil and Gas at the Ministry of Energy and Mineral Resources, said that the Ministry continues to coordinate with the Ministry of Foreign Affairs by collecting data and information through examination and analysis of existing data (desk study).

“In principle, the desk study does not take data directly to the field but with existing data. It seems that we need to sit together with the Ministry of Foreign Affairs and the Malaysian Ministry of Foreign Affairs. The area studied is more in the Indonesian area,” Tutuka said after the 2023 Oil and Gas Safety Award event in Jakarta, on Tuesday (3/10/2023).

Currently, Indonesia and Malaysia are exchanging data. In the future, the two countries have the potential to open up opportunities to work together in the management of the Ambalat Block.

“So we think that in Indonesia, the significance of our cooperation with Malaysia. We have to see it. The data we get, then later Malaysia can give us (the data). Hopefully, we will discuss it again this week with the Ministry of Foreign Affairs,” Tutuka explained.

Previously, Minister of Energy and Mineral Resources Arifin Tasrif said that the Indonesian government opened the option of conducting a Joint Development Agreement (JDA) with Malaysia to manage the Ambalat Block.

“Now the boundary is still crossing, but even though the boundary, we can just join the Development Agreement,” Arifin said at the Ministry of Energy and Mineral Resources, on Friday (14/7/2023).

Later, through this JDA, the government will form an agency in the upstream oil and gas sector to facilitate regulations that specifically oversee projects in the Ambalat Block.

“Many of the Contractor Cooperation Contract (K3S) companies are cross-border. There is a possibility of investment, but of course, it will affect the portion,” Arifin said.