Hulu Migas Investment Target Increases 26 Percent, Investment Minister Asks KKKS To Maintain Work Safety

JAKARTA - Investment Minister/Head of BKPM Bahlil Lahadalia asked Cooperation Contract Contractors (KKKS) to pay attention to Work Safety and Health (K3) in order to achieve the upstream oil and gas investment target in 2023.

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 so that these investments can increase national oil and gas production," Bahlil told the media quoted Friday, May 5.

Bahlil said that increasing upstream oil and gas investment will have an impact on higher upstream oil and gas operational activities. Related to this, Bahlil reminded not to be weak and careless about K3.

"The CEOs who attended this HSE event are certainly very aware of K3, what must also be monitored is the head of the project in the field, how the people in charge are in the field carrying out K3 in full," explained Bahlil.

The realization of investment in the upstream oil and gas sector until the first quarter of 2023 reached 2.63 billion US dollars, an increase of 25.3 percent compared to the same period in 2022.

Present on the same occasion, Head of SKK Migas Dwi Soetjipto said that as an industrial sector that has a high risk, the health, safety & environment (HSE) aspects become a priority in every activity in the upstream oil and gas industry.

"Masive and aggressive programs should not be carried out by compromising the HSE aspect and no work is too important without being done safely. HSE must be a top priority in every upstream oil and gas activity," said Dwi.

To ensure that the HSE program is carried out thoroughly, SKK Migas has taken a number of steps, including ensuring that there is no efficiency related to reducing HSE costs that have been approved by SKK Migas.

"SKK Migas has emphasized to KKKS that 100 percent of the costs related to HSE that have been approved at work, programs & budgets (WPnB) must be fully realized, and SKK Migas will impose sanctions for KKKS who cannot absorb 100 percent of the HSE-related costs," said Dwi.

Just so you know, until the first quarter of 2023, the upstream oil and gas industry has recorded 87 million working hours of upstream oil and gas operations with an incident rate of 0.24.

This figure is still below the maximum estimated incidence rate of 0.9 and is still better than the average incident rate recorded at the International Oil and Gas Producer, which is 0.77.