22 Years Of Upstream Oil And Gas Management, SKK Migas Boss Dwi Soetjipto Denies Sunset

JAKARTA - Head of the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) Dwi Soetjipto denied the assumption that the upstream oil and gas industry had entered the sunset period.

Dwi said, many think that because new and renewable energy (EBT) began to emerge which the government was starting to aggressively encourage to reduce carbon emissions and was considered much cleaner than fossil energy.

"But it's all just talking about energy. Meanwhile, oil and gas is not only for energy but also for petrochemicals. So, I do believe that there will be no sunset for the oil and gas industry," said Dwi in his remarks on the 22nd anniversary of the Upstream Oil and Gas Industry., Tuesday 16 July.

Dwi explained, for the last 22 years the upstream oil and gas industry has become the second largest contributor to tax state revenues with a total contribution of IDR 5,000 trillion rupiah.

After 22 years of working, he said, the upstream oil and gas industry continues to show a strategic role with a significant contribution. In 2023 SKK Migas managed to collect state revenues of IDR 219 trillion and only in the first half of this year the amount has reached IDR 114 trillion.

"This industry remains dynamic with the plan to implement the project reaching 138 upstream oil and gas projects from 2024 to 2029. These projects will require a total investment of IDR 543 trillion," explained Dwi.

He further added that the industry has also succeeded in creating significant multiplier effects through the application of the domestic content level which reached IDR 76.5 trillion in 2023 and the provision of employment opportunities for 150,000 workers.

"The need for oil and gas is expected to continue to increase in volume. This increase is mainly because oil and gas is still needed not only for energy but also as raw materials or feedstock for the petrochemical industry," he concluded.