SKK Migas Notes The Procurement Of Goods And Services In The Hulu Capai Sector Rp. 91 Trillion

Illustration of the refinery (Photo: Doc. Antara)

JAKARTA - The value of the procurement of goods and services for the national upstream oil and gas industry reached 6.08 billion US dollars or around Rp. 91 trillion throughout 2022.

From this value, the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) noted that the percentage of domestic content levels (TKDN) commitment reached 64.75 percent (cost base) or more than 7 percent above the 2022 TKDN commitment target of 57 percent.

"Compared to 2021, the value of procurement of upstream oil and gas goods and services increased by more than US$2 billion or Rp30 trillion. The use of its TKDN also grew 6 percent, from 58.95 percent to 64.75 percent. This shows the ability of local manufacturers to meet the needs of the upstream oil and gas industry continues to grow," said Deputy for Business Support for SKK Migas, Rudi Satwiko, quoting Antara.

This was stated by Rudi Satwiko when opening the Hulu Migas Chain Strategy Workshop and the presentation of the 2023 National Capacity Program in Jakarta, Friday (10/2). The workshop was attended by 118 company representatives, including providers of goods/services and Contractors of Cooperation Contracts (KKKS).

He said the government through SKK Migas continues to encourage the use of domestic products for oil and gas business activities.

"This year, SKK Migas will focus on developing and integrating the capabilities of local producers so as to produce new products that are able to answer the needs of the national upstream oil and gas industry," said Rudi.

Head of the Supply Chain Management Division and SKK Migas Cost Analysis Erwin Suryadi stated that SKK Migas since 2021 has implemented a national capacity building program through regional capacity development in five operational areas, national capacity development, and domestic manufacturing development to enter the international market.

"We are running a joint assessment program which will be attended by 29 local manufacturers in 2021 and 47 manufacturers in 2022. SKK Migas has even published a 2021 national capability book," said Erwin.

In principle, said Erwin, SKK Migas will continue to encourage the creation of products with three aspects of excellence to support the needs of oil and gas operations, namely "quality" (quality), "price", and "delivery" or delivery time. All of this was done in order to meet the oil production target of 1 million barrels per day (BOPD) and the production of gas for 12 billion standard cubic feet of gas per day (BSCFD) by 2030.

On that occasion, Erwin also revealed the success of several local manufacturers who successfully penetrated the export market. This success cannot be separated from the development program and "business match-making" activities facilitated by SKK Migas at the Oil and Gas Malaysia event and the ADIPEC event in Abu Dhabi in 2022.

Meanwhile, President Director of PT Luas Birus Utama Bambang Sukmonojati appreciated the implementation of the National Capacity Forum in 2022.

"Our products are better known, not only in the upstream oil and gas industry. Now there are several energy companies that ask for our supply," said Bambang. PT Luas Birus Utama is a manufacturer that produces various chemicals to optimize oil and gas wells (Chemical OER).

Soni, representing PT Teknologi Renkayasa Katup (TRK) which produces valves (valves) as an oil and gas fluid controller, revealed that PT TRK is exploring the addition of export volume.

"We have sent someone out. We are still negotiating to increase the volume," he said without elaborating on the value of his exports.

In 2023, the National Capacity Forum will be held again on July 26-27 in Jakarta with the theme "Development of Domestic Capability Integration in the Context of Increasing National Capacity". Like the previous year, the National Capacity Forum will be preceded by "events" before the National Capacity Forum in Surabaya, Sorong, Balikpapan, Batam, and Palembang.