Friday, 29 July 2022 06:31

Oil & Gas Sector Plays a Strategic Role in Indonesia's Economic Growth

The Special Task Force for Upstream Oil and Gas Business Activities officially held the Second National Capacity Forum on July 27 to July 28, 2022, at the Jakarta Convention Center (JCC). Vice President Maruf Amin when opening the Kapasitas Nasional Forum on Wednesday (27/7) revealed that the oil and gas sector has long played a strategic role in Indonesia's economic growth. "The contribution of the oil and gas industry to other industries will be very beneficial for increasing national capacity because to increase national capacity in the oil and gas sector and other sectors, the use of domestic components in the oil and gas industry must be further optimized," said Maruf at the Opening of the Kapasitas Nasional II Forum 2022.
Maruf continued, the Kapasitas Nasional Forum is expected to be able to have an impact on increasing the national capacity of upstream oil and gas. One of them is to achieve the oil lifting target of 1 million barrels per day (BPH) and gas of 12 BSCFD by 2030. Minister of Energy and Mineral Resources (ESDM) Arifn Tasrif revealed that currently there are still import components for several goods and services in the upstream oil and gas sector. "In the future, we must be able to fulfill it. For this reason, the Ministry of Energy and Mineral Resources and the Ministry of Industry continue to communicate how to open opportunities for commitment to the use of domestic production," said Arifin on the same occasion. Head of Special Task Force for Upstream Oil and Gas Business Migas, Dwi Soetjipto said, through the National Capacity Forum II 2022, his party facilitated wider cooperation among all stakeholders of the national upstream oil and gas industry. The presence of the Vice President of the Republic of Indonesia Mr. Ma'ruf Amin and several ministers shows the amount of support and commitment of the government in strengthening national capacity. According to him, the National Capacity Forum is one of the efforts of the Upstream Oil and Gas Industry, to boost the ability of the national industry to support Upstream Oil and Gas Activities, by becoming a showroom for domestic players to show their ability to be absorbed by the upstream oil and gas industry.
"Here we facilitate cooperation among business actors to be further involved in the activities of the national upstream oil and gas industry. This cooperation will certainly strengthen national capacity, to pursue the 2030 production target, towards the production of 1 million barrels of oil per day and 12 billion standard cubic feet of gas per day by 2030," he said.

The Kapasitas Nasional Forum is expected to encourage the contribution of domestic products in the upstream oil and gas sector Dwi Soetjipto emphasized that at the National Capacity Forum, there will be an exchange of information, knowledge and opportunities for cooperation that can be done in the future. The Kapasitas Nasional II Forum 2022 will also be a place for discussions to find solutions to various obstacles and challenges that may be faced by stakeholders of the upstream oil and gas industry, especially business actors involved as support for the upstream oil and gas industry. "Productive cooperation among local and national business actors as a support encourages the use of domestic products, as well as increasing the achievement of the Domestic Content Level (TKDN) in the upstream oil and gas industry. Currently, the realization of TKDN in the upstream oil and gas industry has reached 63%. That figure is 6% beyond the government's 57% set," he said. Dwi explained that the government through the Minister of Energy and Mineral Resources has directed that the oil and gas sector is not only a source of energy for industrial raw materials and state revenues but must become a locomotive driving the national economy by creating a multiplier effect and continuing to strive to increase national capacity. Therefore, in the Indonesia Oil &Gas Strategic Plan (IOG) 4.0, National Capacity Building has become part of efforts to transform the Upstream Oil and Gas Industry, especially in implementing increasing the competitiveness of national suppliers.

"Through national capacity development, the upstream oil and gas industry continues to strive for efficiencies that will have an impact on state revenues. Until the first semester of 2022, the upstream oil and gas industry contributed to state revenues of US$ 9.7 billion or around Rp 140 trillion. This figure reaches 97.3% of the annual target of state revenue in the 2022 State Budget, which is set at US$ 9.95," he explained.
Meanwhile, continued Dwi, the value of the oil and gas industry's contribution to other industries in the 2020-June 2022 period reached IDR 174.53 trillion. This figure far exceeds the contract value of the main oil and gas commodity itself which amounted to IDR 141.20 trillion.
The National Capacity Forum II 2022 was attended by 28 oil and gas operators (Cooperation Contract Contractors – KKKS), 68 companies providing goods and services, and 45 selected MSMEs from thousands of MSMEs assisted by PSC throughout Indonesia.
Previously, from the end of May to the beginning of July 2022, SKK Migas together with the Cooperation Contract Contractor (KKKS) had held a series of supporting activities for the 2022 Kapasitas Nasional Pre-Forum in five operational areas, namely Jabanusa (Surabaya, 17-19 May 2022), Sumbagut (Batam, 6-9 June 2022), Pamalu (Sorong, 13 June 2022), Kalsul (Balikpapan, 20-23 June 2022), and Sumbagsel (Palembang, 5-7 July 2022). At the 2022 Kapasitas Nasional Pre-Forum, SKK Migas brought together all stakeholders of the upstream oil and gas industry in each region. Many parties are involved, ranging from Heads of Regional Government (governors, regents, and mayors), local manufacturers and vendors, regional banks, to MSMEs that have succeeded in driving the local economy.

Source : https://amp.kontan.co.id/news/wapres-sektor-migas-memainkan-peran-strategis-dalam-pertumbuhan-ekonomi-indonesia

 

 

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