22 Years Of Establishment, SKK Migas Boss Shows Off Achievements From Upstream Oil And Gas Sector

JAKARTA - Head of the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) Dwi Soetjipto revealed a number of contributions from the upstream oil and gas sector to the state.

Over the past 22 years, the upstream oil and gas industry has become the second largest contributor to state revenue after tax, with a total contribution of IDR 5,045 trillion.

Dwi said that SKK Migas and KKKS continued to search and develop new oil and gas reserves to manage to maintain the reservement ratio (RR) above 100 percent for six consecutive years.

"This is the upstream oil and gas service to ensure that this industry will be sustainable for future generations and support energy adequacy in the future," he said in his remarks, Tuesday, July 16.

Dwi said, the upstream oil and gas industry also continues to increase its contribution in supporting domestic industries.

He conveyed that the upstream oil and gas industry continues to provide gas priorities for domestic needs.

Since 2012, gas supply for domestic needs has continued to increase and is currently around 70 percent of gas supply for domestic, only after that the excess is exported.

"Fulfilling the need for gas for domestic is the most important, if there are remaining and then exported. Therefore, we also encourage the gas user industry to continue to increase its capacity," he said.

Dwi said that the increase in gas production has not been balanced with the availability of gas infrastructure.

As a result, in East Java there is an excess gas reaching 150 MMSCFD which cannot be produced because nothing absorbs, the same thing also happened in Natuna.

He added that currently the government has paid attention to the construction of gas infrastructure such as the Dumai-Sei Mangkei gas pipeline project and the completion of the Cisem II pipeline project.

"If Sumatra, Java and Bali are already connected to gas infrastructure, then the existing gas potential can be further optimized, and the needs of the gas user industry can be met," said Dwi.

Dwi explained, SKK Migas has completed major projects such as Jangkrik Field, Jambaran Tiung Biru Field, and Tangguh Train 3.

In addition, upstream oil and gas business activities, such as drilling and project executions, helped create multiplier effects for other industries through the implementation of the Domestic Content Level (TKDN), which reached IDR 76.5 trillion in 2023 and provision of employment opportunities for 150,000 workers.

"State Property (BMN) managed by the upstream oil and gas sector is now worth US$67.7 billion or, if converted to an exchange rate during asset acquisition, it is equivalent to Rp621 trillion," concluded Dwi.