SKK Migas Encourages Local Upstream Oil And Gas Mills To Enter The Asia Pacific Market

Head of the Division of Supply Chain Management and Cost Analysis of SKK Migas Erwin Suryadi. (Photo: ANTARA)

JAKARTA - The Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) encourages local manufacturers supporting upstream oil and gas to enter the Asia Pacific regional market through the Oil and Gas Asia event.

Head of the Division of Supply Chain Management and Cost Analysis of SKK Migas, Erwin Suryadi said, his party would bring the 20 best local manufacturers to present their products at the special Indonesian pavilion in the Oil and Gas Asia event which was held in Kuala Lumpur, Malaysia, on September 13-15 2022. .

"We are building an agreement with them (local manufacturers) so that products (supporting upstream oil and gas) that are already top can be raised to the Asia Pacific level," he said as quoted by Antara, Friday, August 12.

Erwin explained that Indonesia's participation in the Oil and Gas Asia event this year was the first time.

SKK Migas as the initiator will actively help companies to develop local manufacturing businesses supporting upstream oil and gas.

A total of 20 of the best local manufacturers have previously gone through the selection stage of the National Capacity Forum, including PT Pertamina Patra Niaga, PT Teknologi Rekayasa Katup, PT Rainbow Tubulars Manufacture, PT Luas Birus Utama to Artas.

SKK Migas will be a bridge between domestic manufacturers and seasoned companies in the oil and gas sector in the Indo-Asia Pacific region who are subscribers to the annual Oil and Gas Asia event.

"Manufacturers that we consider competent to be present at the Oil and Gas Asia event. The commodities are diverse, including shipyards and shipyards that are ready, this is what we want to introduce there," said Erwin.

Erwin said that the government's presence is the key in promoting the advantages of domestic manufacturers.

SKK Migas has mapped local manufacturers in various regions through the National Capacity Forum with the findings that there are several companies that have exported their products to foreign markets.

One of them is PT Teknologi Rekayasa Katup which produces valve spare parts which are very vital in oil and gas operations.

"Luas Birus Utama has passed the test from Exxon Indonesia, (a local manufacturer) we will meet with Exxon Singapore. If it passes Exxon Singapore, then there is no story that Exxon Asia Pacific will definitely use their products," Erwin explained.

Erwin assessed that the government's intervention at the beginning of the assessment would help business actors in expanding their business because it would provide certainty to potential partners.

According to him, if it is only entrepreneurs, they will have difficulty promoting because the Asia Pacific market is the government level.

Companies are also more trusted by potential partners if they are supported by the government.

On 27-28 July, SKK Migas held a National Capacity Forum which provided a fairly clear picture of the potential of business actors, especially those supporting upstream oil and gas, which turned out to have the potential and ability not only to meet the needs of cooperation contract contractors (KKKS) operating in Indonesia, but also abroad.

Through the National Capacity Forum, SKK Migas also knows that there are many business actors who have already supplied upstream oil and gas supporting products to foreign markets.

Erwin said that the domestic market is often overcrowded which makes the products produced by upstream oil and gas supporting business actors not optimally absorbed, so they must begin to be marketed abroad through the Oil and Gas Asia event.

"This is an interesting challenge, SKK Migas encourages domestic companies not only to be good at home, but also to be able to market their products to foreign markets," said Erwin.

Furthermore, he said, the presence of the Indonesian pavilion in the Oil and Gas event was not only a bridge for upstream oil and gas supporting industries, but also a way for SKK Migas to market potential oil and gas reserves in Indonesia, which are still prospective.

SKK Migas will encourage Pertamina to actively seek business partners to manage their oil and gas blocks.

"There will also be a Pertamina Subholding, we encourage open communication with players in the Asia Pacific region. So, upstream can be (involved)," concluded Erwin.