Regarding The Impact Of US Recession On Upstream Business, SKK Migas: There Will Definitely Be

Refinery illustration (Photo: Pertamina)

JAKARTA - The Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) has opened its voice regarding the impact of the recession of weakening the economic growth of the United States (US) to Indonesia, especially in the upstream oil and gas business.

Head of the Program and Communication Division of the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) Hudi Suryodipuro said that weakening the economy in the US certainly had an impact on Indonesia.

"From me, there must be (a impact), if we talk about America, the US, there will definitely be an impact," said Hudi when he was breastfed at the SKK Migas Building, Wednesday, August 7.

Hudi said this was related to the Central Bank of the US Federal Reserve or the Fed, which has a policy on its benchmark interest rate to overcome the economic recession that occurred in Uncle Sam's country.

Regarding the details of the impact caused by the upstream oil and gas sector, Hudi said that his party still had to evaluate so that the impact could be mapped.

"We are still doing, seeing, evaluating, when it comes to impacts. For example, because they are very connected to the global economy, I think that's there, but to what extent and what kind of impact, that's what we are still seeing," explained Hudi.

On the same occasion, Hudi also responded to the statement by the Chairman of the Investment Committee of the National Oil and Gas Company Association (Aspermigas) Moshe Rizal, who was worried that the investment of the oil and gas giant from the US, ExxonMobile in the Cepu Block would be detained.

Hudi emphasized that until now he has not received any information regarding Exxon's indication that he will withhold his investment in the Cepu Block.

"Until now, we still have no indication that Exxon Mobil wants to do this. I know Exxon Mobil too, is doing several joint studies in Indonesia as well," concluded Hudi.

For information, previously the US was expected to experience an economic recession. Coordinating Minister for Economic Affairs (Menko Perekonomian) Airlangga Hartarto said the Indonesian government would continue to monitor economic developments in the US. Even so, Airlangga acknowledged that the US recession would trigger the issuance of capital from Indonesia's domestic market to the US (capita flight).

Therefore, he hopes that the interest rate of the Central Bank or the Fed can decrease in the fourth quarter of 2024, although no one guarantees this.