SKK Migas Performs Procurement Efficiency Of Up To IDR 32.1 Trillion In The Last Five Years

Illustration (Photo: Doc. ANTARA)

JAKARTA - The Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) has succeeded in efficiency in procurement costs of up to hundreds of millions of dollars each year.

It is recorded that from 2019 to 2023, the total efficiency value of procurement costs that have been obtained has reached 1.97 billion US dollars or IDR 32.1 trillion with current exchange rate calculations.

"This success is the result of optimizing various procurement strategies, including joint procurement and joint contracts (farm-in), strengthening the intelligence market, and evaluating the Self Estimated Price (HPS) or Owner's Estimate (OE). The implementation of maximum efforts in the tender process also plays a key role in achieving this efficiency," said Head of the SKK Communication and Program Division, Migas Hudi D. Suryodipuro, Wednesday, June 12.

He detailed, in 2019, SKK Migas managed to save 517 million US dollars, the following year, there was a decrease in the efficiency value to 364 million US dollars, this is compared to the decline in the value of procurement due to the Covid-19 pandemic.

This positive trend continues in 2021 with an efficiency of 275 million US dollars and in 2022 with savings of 235 million US dollars. At its peak, in 2023, SKK Migas recorded its highest efficiency over the past five years with a value of 579 million US dollars.

Hudi stated that this success could not be separated from the hard work and dedication of the entire SKK Migas team in collaboration with the Cooperation Contractors.

"We will continue to innovate and improve our procurement process to ensure that every dollar invested in the upstream oil and gas sector provides maximum value for the country and society," he said.

In addition, SKK Migas is also committed to continuing to increase transparency and accountability in the procurement process.

By implementing the latest technology and information systems that are more sophisticated, SKK Migas can monitor and manage procurement more effectively and efficiently.

This achievement not only has a positive impact on state revenue, but also supports the government's efforts to increase efficiency and productivity in the upstream oil and gas sector. In the future, SKK Migas is determined to continue to be a pioneer in procurement innovation and make a real contribution to Indonesia's economic growth," concluded Hudi.