Upstream Oil And Gas Industry Contribution Increases Amid The Pandemic

Head of the Public Relations Department of SKK Migas Papua-Maluku, Galih Agussetiawan (right). BETWEEN PHOTOS/Olha Mulalinda/mobile.

JAKARTA - SKK Migas and all Cooperation Contract Contractors (KKKS) continue to improve the implementation of the domestic content level (TKDN). Currently the achievement of TKDN reaches 58 percent.

"Currently, the TKDN achievement rate is around 58 percent," said the head of the Division of Supply Chain Management and Cost Analysis of SKK Migas Erwin Suryadi in a webinar monitored in Jakarta, reported by Antara, Tuesday, October 12.

He said this figure is the KKKS commitment to be spent on domestic companies. That way, he said, the upstream oil and gas industry is still the main source of state revenue as well as the locomotive of national development by driving the economy at the center and regions.

Where the upstream oil and gas industry has helped the Government to turn the wheels of the national and regional economy. In 2020, the contribution of upstream oil and gas to state revenues will reach Rp. 122 trillion or 144 percent of the 2020 APBNP target.

As of August 2021, state revenues from the upstream oil and gas sector have reached Rp 125 trillion or 125% of the 2021 target. The upstream oil and gas industry has contributed greatly to state revenues, which require a lot of money to deal with Covid-19 and economic recovery.

"We are optimistic that the upstream oil and gas industry can still contribute tens of trillions to state revenues in the third quarter of 2021," Erwin said.

"In addition, the oil and gas industry has also contributed to other industries in 2020-2021 with a total contract value of USD 7.127 billion," he added. and national support in the last five years because of the interrelationships between each other. With the oil production plan with a target of 1 million barrels, the opportunity for the national industry to play an active role is even greater.

“This is an opportunity for the oil and gas supporting industry, both goods and services, to be able to increase its competitiveness. Meanwhile, for the upstream oil and gas industry, this is also an opportunity to increase the TKDN achievement in its activities," said Komaidi.

He also hopes that SKK Migas can continue to provide guidance to domestic industries to be able to improve competence from the technological aspect. Not only that, incentive support is also needed so that newly built industries with high depreciation values can compete.

Adding this, Erwin Suryadi said, throughout 2021 world oil prices will increase. As a result, it pushes the domestic economy in a better direction because it increases the economic level of the oil and gas industry.

This momentum, said Erwin, needs to be supported by providing incentives so that investment can flow immediately so that the supporting industries will also enjoy it.