Blue ammonia, which is derived from natural gas, can help reduce carbon emissions, support the energy transition, meet the demand for clean energy, and increase regional revenue.
“The investment value of the blue ammonia project is approximately US$1.2 billion, or more than Rp10 trillion,” Lahadalia said during an event marking the 22nd anniversary of Teluk Bintuni district on Wednesday.
According to the minister, the government has prepared the industrial downstreaming project in response to the aspirations conveyed by the residents of Teluk Bintuni, which is one of Indonesia’s major natural gas-producing regions.
The central government will collaborate with the West Papua provincial government and the Teluk Bintuni district government to ensure the inclusion of local entrepreneurs in the blue ammonia factory project.
“The governor and the district head will recommend local Papuan businesspeople who are professional and meet the required criteria. This is a major investment,” he said.
He also promised to advocate for an increase in oil and gas revenue sharing funds (DBH migas), noting that Teluk Bintuni plays a crucial role in supporting Indonesia’s energy sovereignty.
The ESDM Ministry has held discussions with Genting Oil Kasuri, the company investing in the region, to ensure the realization of additional DBH migas by 2027.
Before that, the local government needs to prepare the necessary regulations that will serve as the legal foundation for implementing the Participating Interest (PI) policy, which grants a 10-percent share in oil and gas production to the government.
Related news: West Papua governor highlights Pancasila-inspired welfare programs
Related news: Indonesia's West Papua sets prioritize seven priority programs in 2026
Translator: Fransiskus, Kenzu
Editor: Azis Kurmala
Copyright © ANTARA 2025
