Aceh Governor Muzakir Manaf to Write to President Prabowo on Upstream Oil and Gas Development in Andaman Block at KEK Arun

BANDA ACEH | INDATANEWS.COM - Aceh Governor, Muzakir Manaf, has taken a strategic step by planning to send an official letter to President Prabowo Subianto regarding newly discovered oil and gas reserves in the Andaman Block. The initiative aims to accelerate downstream industrial development (hilirisasi) in the Arun Lhokseumawe Special Economic Zone (KEK), which is seen as a key driver of Aceh's economic growth potential.

The plan to send the letter to the President emerged from a coordination meeting on the development of the Andaman oil and gas block held on Thursday, June 25, 2026, at the Aceh Governor's Office in Banda Aceh. The meeting was chaired by Aceh Regional Secretary M. Nasir Syamaun and attended by senior government officials, as well as experts and academics from the energy sector.

The provincial government emphasized that strengthening downstream industrial activities in KEK Arun Lhokseumawe aligns with national development priorities. President Prabowo Subianto, under the 2025–2029 National Medium-Term Development Plan (RPJMN), has included 77 strategic projects, with the development of KEK Arun Lhokseumawe positioned as one of the key components.

Aceh Regional Secretary, M. Nasir, stated that all outcomes of the meeting will be followed up systematically, particularly in optimizing the potential of the Andaman Block to support Aceh's downstream industrial agenda.

The meeting was attended by, among others, Assistant II of the Aceh Provincial Secretariat T. Robby Izra, Head of Economic Affairs Zaini, Head of the Aceh Energy and Mineral Resources Agency Asnawi, as well as other technical officials. Energy experts, lecturers from Universitas Syiah Kuala (USK), special advisors to the governor, and government spokesperson Dr. Nurlis Effendi were also present.

Significant gas and condensate potential in the Andaman Block

Discussions focused on the substantial potential of the Andaman Block, particularly its gas and condensate reserves, which can serve both as an energy source and as raw material for downstream industries.

USK Professor Prof. Dr. Jasman J. Ma'ruf described the governor's move to write to President Prabowo as highly appropriate. He noted that the Andaman Block's potential is not limited to electricity generation but can also be developed into high-value industrial products.

"This is a correct and very good step for Aceh," he said.

According to him, gas production from the Andaman Block, estimated at around 300 MMSCFD, could be utilized not only for electricity generation through PLN but also processed into methanol and hydrogen, both of which have significant economic value.

Methanol is particularly needed for the national biodiesel program, especially as a blend in palm oil-based biodiesel. In addition, condensate processing could produce naphtha and kerosene for the paint industry, as well as fuels such as diesel and gasoline.

The South Andaman Block is also expected to produce around 7,500 barrels of condensate per day, making it highly suitable for refinery development in Aceh.

"These developments will also create jobs and strengthen Aceh's economy," Jasman added.

Investment acceleration and data clarification

Participants also agreed that accelerating downstream industrial development in KEK Arun Lhokseumawe is crucial to ensure that economic benefits reach the public more quickly. The provincial government also plans to request gas allocation for Aceh from the Andaman Block.

Prof. Dr. Izarul Machdar emphasized the need for a more proactive approach from the Aceh government by inviting Mubadala Energy and SKK Migas to provide detailed explanations of the project's management structure.

"We need to fully understand how the system actually works," he said.

Head of Oil and Gas at the Aceh Energy and Mineral Resources Office, Dr. Dian Budi Dharma, stated that SKK Migas has not yet submitted an official Plan of Development (PoD) document for the Tengkulo gas field in the South Andaman working area to the provincial government.

"We have only obtained it from environmental impact documents," he said.

Similarly, Head of the Aceh Oil and Gas Management Agency (BPMA), Nasri Djalal, said his office had already sent a letter to SKK Migas but had not yet received a response.

Two key decisions from the meeting

At the conclusion of the meeting, Regional Secretary M. Nasir outlined two main decisions. First, the Governor of Aceh will officially send a letter to President Prabowo Subianto requesting that oil and gas potential from the Andaman Block be utilized as a driver of industrial development in KEK Arun Lhokseumawe. Second, the provincial government will invite Mubadala Energy and SKK Migas for further discussions in Aceh.

"First, the governor will send a letter to the President so that gas from the Andaman Block can support industrialization in KEK Arun Lhokseumawe, and second, Mubadala and SKK Migas will be invited to Aceh," Nasir said.

Following the meeting, the Regional Secretary instructed Head of Economic Affairs Zaini to prepare a draft of the letter based on the meeting's conclusions.

"The content of the letter will follow the results of the meeting," Nasir added. (IDNC)

REPORTER: Adli Safwan | EDITOR: Fik Sagala

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