Stimulating National Industry Independence, Oil And Gas Entrepreneurs Asked To Increase The Use Of TKDN

Minister of Energy and Mineral Resources Arifin Tasrif. (Photo: Doc. ANTARA)

JAKARTA - Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif asked entrepreneurs in the oil and gas (oil and gas) sector to increase the use of the Domestic Component Level (TKDN) to spur the independence of the national industry.

"We strongly encourage Saipem to fulfill TKDN as much as possible and utilize domestic equipment. This will not only support local industries but will also create new jobs and strengthen our human resource capacity," said Arifin as quoted by ANTARA, Friday, June 14. Arifin explained, optimization of the use of TKDN was implemented because the oil and gas sector players were able to produce oil and gas structures for domestic and international needs.

According to him, PT SIKY has strategic value for Indonesia because it has large reserves of oil and gas such as in the Masela Block, Andaman Block, Kutai Block, and the Carbon Capture Ubandari project.

Therefore, with a large production capacity expected through an increase in TKDN, it can provide added value for the Indonesian economy.

"With the capabilities and experience we have, we believe that PT SIKY can support the implementation of these strategic projects to support the government in achieving the target of increasing national oil and gas production and energy transition policies," he said.

Head of the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) Dwi Soetjipto said that the increase in the use of TKDN for the oil and gas sector is targeted to reach up to 57 percent.

"SKK Migas is committed to continuing to increase the use of domestic products, which this year is targeted to reach 57 percent," he said.

He explained that the plan to procure upstream oil and gas goods/services in 2024 reached 13.9 billion US dollars or equivalent to IDR 219 trillion.

So that with the target of TKDN of 57 percent, as much as Rp124.8 trillion in upstream oil and gas spending is included in the domestic market.

"Economically, this will cause a very large multiplier effect at the central and regional levels, both tax growth in the regions, employment opportunities and of course the capacity of domestic industries is getting stronger", he said.

Currently, the total workforce in SIKY is more than 4,000 people, of which more than 90 percent of them are Indonesian citizens.

In addition to absorbing local labor, the company is the most important industry on Karimun Island because it has a good sustainable impact on the welfare of the community.