In order to push CBM development, Dr. Legowo explained, the Government has prepared some incentives. Among such are by giving an interesting production sharing for investors, which is 55% for the Government and 45% for the investor. It is the biggest CBM production sharing compares with oil and gas. For petroleum, the production sharing composition is 85% for the Government and 15% for the investor. As for gas, the share is 70% for the Government and 30% for the investor. Evita said that besides production sharing, we are also discussing tax dispensation as another incentive.
Indonesia`s CBM potential is quite large (second worldś largest after China); around 453 TCF, spread in the areas, especially Southern Sumatera and East Kalimantan. For the details: North Sumatera for 52,50 TCF, Ombilin 0,50 TCF, South Sumatera 183 TCF, Bengkulu 3,60 TCF, Jatibarang 0,80 TCF, Kutei 80,40 TCF, Barito 101,60 TCF, Pasir dan Asem-Asem 3 TCF, Tarakan Utara 17,50 TCF, Berau 8,40 TCF and Sulawesi 2 TCF.
East Kalimantan in total has 105 TCF, according to Advanced Resources International (2003). CBM eploration has been done by the State-Owned Pertamina together with Ephindo Sangatta West in Sangatta. Vico should have been also doing eploration in Badak, East Kalimantan. Pertamina has been operational in CBM Sangatta 1, 2, 3, 4 and CBM Tarakan, Bunyu, and also CBM SImanggaris. Benua Etam has also attracted some investors.
In East Kalimantan, Dart Energy Ltd is a partner company of Pertamina. Dart owns 24% interest in Sangatta West CBM block, 50km north of the Bontang LNG facility. The company become joint operator with PT Ephindo (24%) through its JV, Sangatta West CBM Inc. The other 52% interest is held by Pertamina.
Pupuk Kaltim, one of the 5 state-owned fertilizer producers under Pupuk Sriwidjaja Holding has shown interests in CBM supply as well as Badak NGL. Both companies are in Bontang.