OPEC + Pangkas Migas Production, This Is The Impact For Indonesia

Illustration (Photo: Doc. Antara)

JAKARTA - The Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) has opened its voice regarding the OPEC+ decision to cut production by 2 million barrels per day.

Head of SKK Migas Dwi Soetjipto said this production cut had a direct impact on world oil prices which would certainly not decrease.

"The price of oil and gas is relatively high, so it should go down to 80 and possibly to 60 dollars per barrel, but then detained and will go up to 90," he said at a press conference in Jakarta, Monday, October 17.

However, this could actually bring in investment potential in the upstream oil and gas sector of Indonesia.

With the cut, it will bring in investors to invest so that they can boost the economic price of domestically produced oil.

In addition, Indonesia's position, which is a 'friend' of the United States and Saudi Arabia, will not be burdensome and will not drag Indonesia into the conflict.

"If it makes Indonesia upstream oil and gas, it will be good, because thus people's motivation to invest will be good, because the economy is better," added Dwi.

With this investment opportunity, Dwi said, it must be welcomed by improving the domestic investment climate in order to attract investors to invest in Indonesia.

Despite bringing in opportunities for the upstream sector, Indonesia's position as a net importer of oil will actually have a negative impact because high world oil prices will increase the cost of importing oil and Indonesian fuel so that it will increase the burden on fuel subsidies.

"Of course it becomes costy, because with a crude price that is more expensive. At what level is the balance of benefits obtained from upstream with costs that arise for subsidies," concluded Dwi.