Entering Priority Sector, Upstream Oil And Gas Investment Realization Reaches 2.73 Billion US Dollars

Illustration (Photo: Doc. Antara)

JAKARTA - Investment Minister/Head of BKPM Bahlil Lahadalia said the government continues to encourage increased investment in Indonesia to support national economic growth.

Entering as one of the 8 priority sectors, in the first quarter of 2023, the upstream oil and gas sector recorded the realization of investment in the upstream oil and gas sector reaching 2.63 billion US dollars.

This realization increased by 25.3 percent compared to the same period in 2022.

Bahlil explained that the government has set 8 priority investment sectors until 2040 which are divided into 3 focus areas, the first is the mineral and coal sector which is targeted at US$431.8 billion.

Then oil and natural gas amounted to US$68.1 billion, then plantations, marine, fisheries and forestry amounted to US$45.4 billion.

The government has focused on downstreaming. Not only mining natural resources, but also in oil and gas. Several times flat, the President has emphasized that they should sell in the form of added value and not raw goods. The most important implementation of downstream downstream in oil and gas is that the upstream oil and gas industry is not harmed, so that this sector can continue to grow and develop because its role is very much needed in development," said the Minister of Investment/Head of BKPM, quoted on Thursday, May 4.

Bahlil said that the investment target upstream oil and gas in 2023 was US$15.5 billion, an increase of 26 percent compared to investment realization in 2022 and higher than the investment growth in upstream oil and gas, which was around 6.5 percent.

"The realization of upstream oil and gas investment in the first quarter of 2023 grew 25.3 percent compared to the realization of investment in the same quarter in 2022. This shows that investment interest in the upstream oil and gas sector in Indonesia is still attractive to investors and how to increase national oil and gas production," concluded Bahlil.