Realization Of Domestic Content Of Upstream Oil And Gas Reaches 63.3 Percent, SKK Migas: Gives Multiplier Effects Stimulates Other Industries

Deputy Head of SKK Migas Fatar Yani Abdurrahman. (Photo: Doc. Antara)

JAKARTA - The Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) reported that throughout the first semester of 2022, the realization of the Domestic Content Level (TKDN) for the upstream oil and gas industry had reached 63.3 percent. This figure has exceeded the target set by the government this year, which is 57 percent.

"We will continue to encourage the Domestic Content Level (TKDN). Until June 30, 2022, the realization of six percent exceeded the target set by the government this year by 57 percent," said Deputy Head of SKK Migas Fatar Yani Abdurrahman in Jakarta, Tuesday, July 19.

In addition, the presence of the oil and gas industry has also succeeded in creating a multiplier effect that stimulates other national industries. The oil and gas sector is one of the sectors that continues to roll during the pandemic so that the wheels of the Indonesian economy keep turning.

Fatar Yani explained that the contribution value of the oil and gas industry to other industries in the 2020-June 2022 period reached Rp. 174.53 trillion. The contract value is far above the contract value of the main oil and gas commodity itself throughout 2020 to June 2022 of Rp. 141.2 trillion.

In addition, the involvement of MSMEs in the total value of the oil and gas industry contracts until June 2022 reached Rp. 17.3 trillion or 9.9 percent, with a TKDN of 100 percent.

He added that his party will continue to encourage the role of national and local industries in all the implementation of upstream oil and gas industry activities in Indonesia. Therefore, SKK Migas seeks to improve the capabilities and capacities of supporting industry players.

To encourage this, his party will also hold the 2022 National Capacity Forum (Kapnas) at the Jakarta Convention Center, Jakarta on 27-28 July 2022. The event is held in line with the success of SKK Migas in boosting the capability of the national industry in the upstream oil and gas industry through the 2021 National Capacity Forum. .

Fatar Yani emphasized that SKK Migas will continue to encourage the role of national and local industries in all the implementation of upstream oil and gas industry activities in Indonesia. Therefore, SKK Migas has an interest in increasing the capabilities and capacities of supporting industry players.

“We will continue to encourage TKDN. The forum will become a show room for domestic players to show their ability to be absorbed by the upstream oil and gas industry," he concluded.