Pursuing Oil Production Target 1 Million Barrels, RI Needs 20 Billion US Dollars Per Year

BALI - Head of the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) Dwi Soetjipto revealed that the upstream Indonesian oil and gas industry needs at least US$20 billion per year to pursue the production target of 1 million barrels per day (BOPD) and gas to 12 billion cubic feet per day (BSCFD) in 2030.

"The 2030 target can be achieved on the condition that we carry out aggressive activities and massive investments. We need to drill more than 1,000 wells per year after 2025," said Dwi in his remarks at the opening of the 4th International Convention on Indonesian Upstream Oil and Gas Industry 2023 (ICIUOG) in Nusa Dua Bali, Wednesday 20 September.

According to him, investment growth has important requirements, namely an attractive investment climate for investors.

Since 2020, the attractiveness of upstream oil and gas investment in Indonesia has increased, supported by government support through a more flexible fiscal system and other supports that reduce investment risk.

"However, some areas still need improvement, namely in the legal and contractual aspects as well as the discovery of giant reserves or giant disclosures," continued Dwi.

To achieve this target, Dwi said, SKK Migas and the upstream oil and gas industry in 2020 have launched Indonesian Oil and Gas 4.0 (IOG 4.0) which is a strategic plan to achieve the 2030 target.

To ensure the progress of activities carried out and encourage the acceleration of activities, since 2020 SKK Migas has held the annual ICIUOG event.

"This activity is also the peak of cross-employment collaboration to discuss the achievement and improvement of this strategic plan," added Dwi.

Present on the same occasion, Coordinating Minister for Maritime Affairs and Investment (Menko Marves) Luhut Binsar Pandjaitan said the government fully supports the SKK Migas initiative.

"We are proud to say that the Coordinating Ministry for Maritime Affairs and Investment has the same vision as SKK Migas in supporting investment in Indonesia," he said.

Luhut emphasized that the oil and gas sector has a very important and strategic role in all countries.

Energy has always been a driving force for investment and a new industry that will ultimately create jobs and encourage inclusive economic growth.

"I invite all parties to strengthen collaboration, cooperation and innovation to support the sustainability of investment in the upstream Indonesian oil and gas sector in order to achieve the target of 1 million BOPD oil and 12 BSCFD gas by 2030," concluded Luhut.