Foreign company in Indonesia – Majority of Indonesian people would have known very well that our country has a wealth of nature is very abundant. Various mining products are produced in our country from petroleum, coal, nickel, gold, and more. But unfortunately, the citizens of Indonesia are not that enjoy all the natural wealth. Most of the natural wealth is managed by foreign company in Indonesia.
Prior to 2004, Indonesia was an oil-rich country and entered into the Organization of the Petroleum Exporting Countries (OPEC).
Every day, oil companies in Indonesia managed to produce more than 1 million barrels. At that time, the growth of vehicles in Indonesia has not been as fast now. So, there is still oil allocation that is exported to many countries.
Along with the old oil wells in Indonesia, the production of fossil energy also declined. Since then, oil production has declined and Indonesia is expelled from OPEC for having become a country with greater oil imports than exports. According to British Petroleum data, Indonesia’s oil reserves are only 4 billion barrels or enough for another 11 years.
Since then, oil and government companies are developing gas production. Indonesia has an extraordinary gas reserve of 335 trillion cubic feet, equivalent to 59.6 billion barrels of oil.
Many large foreign companies are contributing to the non-renewable natural resources. What are the companies?
5 Foreign Company in Indonesia Handling Natural Wealth
We have often known the name of PT Freeport which is known to manage the gold mine in Papua. However, Freeport is not the only foreign company dredging Indonesia’s natural wealth. There are still some other names of foreign company in Indonesia as follows.
PT Chevron Pacific
PT Chevron is one of the world’s largest energy companies from the United States. Chevron has been active in 180 countries including Indonesia. In Indonesia, Chevron manages geothermal mines to serve as a source of energy. One of the largest locations in Indonesia is located in Mount Salak, West Java.
The number of active volcanoes in Indonesia makes Indonesia potentially have geothermal resources or abundant geothermal. Geothermal can then be used as a source of electrical energy in a very large amount.
PT Newmont is a Colorado-based company that explores the gold and copper mines of NTT and NTP. The subsidiary company, PT Newmont Nusa Tenggara, operates a mining operation at the Batu Hijau mine in Sumbawa Island.
Each year, Newmont can produce gold reaching 200-300 thousand ounces per year. But unfortunately, just like Freeport, the company is less nurturing the community around the mining area in terms of waste or discourse impacts absorbing labor around. The contract of this company will continue until 2038 later.
PetroChina is an oil and gas company from China and based in Dongcheng District, Beijing. This company is the largest oil producer in China. However, the company is also processing mine products in several parts of Indonesia.
In Indonesia, the company is processing oil fields in Papua, Java Sea, and Jambi. PetroChina entered Indonesia in 2002 when it acquired Devon Energy. Since then, the company has been managing Indonesian oil and gas mining in several areas.
Conoco Phillips is an energy company from the United States that moves on an international scale and is the second largest oil refinery company in the country. The ConocoPhillips headquarters is located in Huston, Texas, but the company operates in more than 40 countries and one of them is Indonesia.
In Indonesia, ConocoPhillips manages oil mines in Riau, South Sumatra and Jambi. Riau Islands are able to produce 61,575 barrels of oil per day. South Sumatra produced 41,057 barrels per day and Jambi produced 19,506 barrels per day.
BP is an oil and gas company headquartered in London, England. The company has been operating for more than 35 years in Indonesia and even now has become one of the largest investors in our country.
BP manages several blocks of gas mines in Papua through its subsidiary, BP Berau. The gas produced by this company, 60 percent is exported to Asia Pacific countries while the rest is distributed to Indonesia.
Niko Resources is an Indian and Southeast Asian company focusing on oil and natural gas. The company has shares in various mines in the world including in Indonesia.
Niko Resources is from Canada and is a subsidiary of Calgari which has 12 oil and gas blocks in Indonesia. Despite treating mines in various parts of the world, 58 percent of Niko Resources’s exploration land is in our country.
Indonesia does have so rich natural resources. But unfortunately they still do not have enough ability to explore and cultivate their own natural wealth. So one way that can be taken is so that Indonesia can still build a country is to receive foreign investment.
Therefore, if they want to take over all the natural wealth of the country, then they need to improve ourselves and develop human resources first. Hopefully in the future not only foreign company in Indonesia is managing their natural wealth, but the company from Indonesia itself.