Upstream Oil And Gas Industry Contributes To Creating Community Welfare In The Regions

Illustration of workers carrying out oil well drilling activities. (Photo: ANTARA)

JAKARTA - The upstream oil and gas (oil and gas) industry continues to contribute to creating community welfare in the region.

This is in line with the high income of the local government and the supporting industries operating in the area.

The Acting (Plt) Deputy for Control of SKK Migas Rudi Satwiko said that there is an obligation for cooperation contract contractors (KKKS) to choose a regional company in which one project to procure goods or services is worth 1 million US dollars.

"We continue to encourage the role of national and local industries in all the implementation of upstream oil and gas industry activities," said Rudi as quoted from Antara, Tuesday, May 17.

Rudi said that the upstream oil and gas industry has proven to have created a significant multiplier effect in moving the wheels of the local community's economy through the business of providing local goods and services, business opportunities, absorption of local workers, to the social responsibility carried out by each KKKS in their work area.

Currently, he continued, SKK Migas is facilitating a meeting of upstream oil and gas industry stakeholders in the area of operations for Java, Bali and Nusa Tenggara as a pre-activity of the National Capacity Forum in Surabaya, on 17-19 May 2022.

The activity became a forum for discussion, socialization, as well as product exhibitions for manufacturers, vendors and MSMEs engaged in the upstream oil and gas supporting industry.

"This activity is expected to occur in business cooperation between upstream oil and gas supporting business actors which then creates a multiplier impact on the national economy," said Rudi.

He added that business cooperation between local and national oil and gas industry players helped to strengthen national capacity to pursue the oil production target of 1 million barrels and 12 BSCFD of gas by 2030.

Since 2015 SKK Migas has encouraged an increase in the use of local products or TKDN in the upstream oil and gas industry to have a positive impact on the national economy.

"These efforts have paid off, resulting in an increase in the TKDN figure from 50 percent in 2015 to 58 percent in spending on upstream oil and gas goods/services as of September 2021," concluded Rudi.