Highest In 8 Years, SKK Migas Records Investment Realization Of IDR 210 Trillion

Head of SKK Migas Dwi Soetjipto (Photo: Doc. VOI)

JAKARTA - The Special Task Force for Upstream oil and gas business activities (SKK Migas) noted that until the end of 2023, the realization of upstream oil and gas investment reached 13.7 billion US dollars or around Rp. 210 trillion.

Head of SKK Migas Dwi Soetjipto said, compared to investment realization in 2022, there was an increase of up to 13 percent and exceeded the global upstream oil and gas investment growth which is estimated to be in the range of 6.5 percent.

The realization of upstream oil and gas investment in 2023 also makes it the largest investment since 2016 or in the last 8 (eight) years.

Dwi added that in the midst of various challenges, the upstream oil and gas sector was able to consolidate and find a way to recover faster due to the Covid-19 pandemic and be able to play a precise role in the midst of the energy transition so that upstream oil and gas remains one of the investment objectives in Indonesia.

"We are grateful that apart from going through a massive and aggressive work program, the implementation of upstream oil and gas transformation in accordance with Indonesia Oil & Gas 4.0's strategic plan went well, the results of which can be seen with the increasingly massive investment in the upstream oil and gas sector, despite the emergence of new challenges, namely the development of investment in the clean energy sector," said Dwi at the 2023 Hulu Migas Performance Press Conference, Friday, January 12.

Despite being the largest investment in the last 8 years, this achievement is still below the target, which was set at the beginning of the year at 15.56 billion US dollars.

Dwi also said that he was optimistic that the trend of investment would continue to increase in the future.

Regarding upstream oil and gas investment to achieve the long term plan (LTP) target towards the 2030 target, Dwi said that in 2023 the upstream oil and gas investment will be able to exceed the investment target set in the LTP.

"Based on calculations in LTP, the investment target is actually 13 billion US dollars so that the 2023 investment achievement of 13.7 billion US dollars is about 5 percent higher than the LTP target. For 2024 we have set a much higher investment target of around 17.7 billion US dollars or above the LTP target of 16 billion US dollars," concluded Dwi.