SKK Migas: Upstream Oil And Gas Industry Produces Around IDR 700 Trillion For The State

Illustration (Photo: Doc. Antara)

JAKARTA - The Special Task Force for Upstream oil and gas business activities (SKK Migas) revealed that throughout 2022 the upstream oil and gas industry has deposited at least IDR 700 trillion to the state.

Deputy for Finance and Commercialization of SKK Migas Kurnia Chairi said that as representatives of the state in carrying out the management of upstream oil and natural gas business activities based on cooperation contracts, they continue to carry out various breakthroughs to provide maximum benefits and revenues for the state for the greatest prosperity of the people.

"We are grateful, the various steps taken by SKK Migas through the handling of business processes, transformation, digitization and integration of the system with various related parties have created transparent, accountable, cost efficiency and process speed industries so that it has a very significant impact where upstream oil and gas industry can produce around IDR 700 trillion for the country," he told the media quoted on Tuesday, May 9.

Kurnia added that upstream oil and gas as a driving force for the national economy through the proceeds of oil and gas sales directly contributed around Rp. 672 trillion, consisting of sales of oil and gas of around Rp. 583 trillion, including the allocation of funds for oil and gas yields of Rp. 17 trillion which were also felt by producing regions and other revenues from upstream oil and gas of around Rp. 89 trillion which included bonus signatures, bonus production, firm commitments, payment of VAT, PBB Migas, PDRD, and oil and gas income tax and other incomes.

"This value is obtained through several breakthroughs that have been carried out, including accelerating the acceptance of the proceeds from selling oil through simplification of the collection and payment business process, making flexibility of the commercialization scheme through optimizing oil lifting and developing systems and procedures that support the acceleration process," said Kurnia.

He continued, support for the growth of certain industries that utilize natural gas, also continues to be carried out through the implementation of Certain Natural Gas Prices (HGBT) which contributes to around IDR 24 trillion.

Kurnia informed that the breakthrough and improvement carried out by SKK Migas in the implementation of oil and gas lifting in 2022 was able to secure state revenues so as to provide support for accelerating cash flow in state revenues.

"Every lift that is recorded, 100 percent of payments have entered the state account, although in the field there are several lifting activities that have been delayed due to weather disturbances and others. This step will secure state revenues and accelerate state cash flow so that it can support various development programs that have been set by the government in the APBN," said Kurnia.

In addition, in terms of management and utilization of state-owned goods (BMN) Hulu Migas, SKK Migas has carried out control and supervision of BMN management and continues to seek transformation and optimization, where until the end of 2022, the value of BMN Hulu Migas in the Central Government Financial Report amounted to IDR 598.71 trillion or an increase of 4 percent from the previous year and succeeded in optimizing BMN by posting PNBP for upstream oil and gas BMN management of IDR 251.22 billion or an increase of 35 percent from the previous year.

SKK Migas also encouraged the use of Badak LNG Refinery Assets where the upstream oil and gas industry that was successfully deposited into the country was around Rp. 1.7 trillion for the use of the Badak LNG Refinery.

"In 2022, SKK Migas and the Ministry of Finance have also exchanged data on the upstream oil and gas sector through the Integrated Information System (SIT) so as to provide transparent data and accelerate the recording process which in turn accelerates business processes so that upstream oil and gas management activities become more optimal and support decision making related to policy in the upstream oil and gas sector," said Kurnia.