SKK Migas Projects Investment In 2024 To Reach 16.1 Billion US Dollars

Photo: Doc. Antara

JAKARTA - Head of the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) Dwi Soetjipto said investment projections in 2024 reached 16.1 billion US dollars or around Rp261.72 trillion.

"The investment outlook for 2024 is 16.1 billion dollars, it increased 18 percent from 2023," Dwi said in a hearing with Commission VII DPR RI in Jakarta, quoted from Antara, Thursday, June 6.

Dwi said the projection was still higher than the 2023 achievement which reached 13.7 billion US dollars or Rp222.70 trillion.

This figure is an increase of 13 percent compared to the realization in 2022 and 5 percent higher than the long term plan (LTP) and above the trend of E&P Global investment.

Furthermore, in his presentation, Dwi explained that until May 2024, the realization of upstream oil and gas investment had reached 4.33 billion US dollars or Rp70.38 trillion.

Pertamina Group contributed up to 54 percent of the total upstream oil and gas investment in 2024, while the rest came from other cooperation contractors (KKKS) of 37 percent.

In January 2024, Dwi said that the continued increase in upstream oil and gas investment in Indonesia in the last eight years showed that the efforts of the government and SKK Migas to increase the investment climate have been able to restore investor confidence to return to the upstream oil and gas sector.

"We are grateful that apart from going through a massive and aggressive work program, the implementation of the upstream oil and gas transformation according to the strategic plan Indonesia Oil & Gas 4.0 is going well, the results can be seen with the increasingly massive investment in the upstream oil and gas sector, even though in the midst of new challenges, namely the development of investment in the clean energy sector," said Dwi.

He said 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.

Dwi also admitted that he was optimistic that the upstream oil and gas investment trend would continue to increase in the future.

Meanwhile, regarding upstream oil and gas investment to achieve the long term plan (LTP) target towards the 2030 target, Dwi said that in 2023, upstream oil and gas investment was first 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.