SKK Migas Asked to Make Breakthroughs to Boost Oil and Gas Production

Coordinating Minister for the Economy Airlangga Hartarto. (Photo: Doc. Antara)

BALI - Coordinating Minister for Economic Affairs Airlangga Hartarto asked the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) to make a breakthrough policy to boost oil and gas production.

"There need to be steps taken by SKK Migas", said Airlangga, quoted from Antara, Thursday, November 24.

According to him, a breakthrough is needed considering the declining domestic oil and gas production.

In addition, he continued, so that the investment situation and climate for the oil and gas sector in Indonesia as well as the incentives provided could be better, as well as encourage the energy transition to new and renewable energy.

"Because this is a necessity that we must face together so that investment in upstream oil and gas continues to run in a conducive manner, the need for incentives, both fiscal and non-fiscal, needs to be discussed deeply among stakeholders", he added.

Airlangga said that one of the slowing down oil and gas development projects was in the Masela Block perpetual gas field, Maluku.

For this reason, he also asked for a review of the effectiveness of regulations to encourage accelerated revisions if the regulations were deemed not yet effective in encouraging investment.

"If it is seen that it is not enough to encourage the growth of the oil and gas industry, it is certainly possible to see whether the existing regulations are effective in encouraging them and if they are not effective, it is necessary to make revisions towards improvement", he said.

Airlangga requested that collaboration be optimized between the central government, regional governments private and state business entities as well as contractors so that oil and gas production targets can be achieved.

SKK Migas said the upstream oil and gas industry has a target to increase national oil and gas production, namely one million barrels of oil per day (BOPD) and 12 billion cubic feet of gas per day (BSCFD) by 2030.

If achieved, the target will affect Indonesia's state revenues and exports.

"Currently our exports are positive at 5 billion (US dollars), but the balance of oil and gas every month is negative, it could approach 2 trillion", said Airlangga.