Gov’t Supports Optimization of Indonesia’s Oil and Gas Industry

By Office of Assistant to Deputy Cabinet Secretary for State Documents & Translation     Date 27 Juli 2022
Category: News
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Vice President Ma’ruf Amin opens the 2nd National Capacity Forum 2022, at the Plenary Hall of the Jakarta Convention Center (JCC), Central Jakarta, Wednesday (07/27). (Photo by: BPMI of Vice Presidential Secretariat)

The Government continues to encourage optimum growth and contributions of the oil and gas industry so the communities can benefit from the industry, Vice President Ma’ruf Amin has said.

According to the Vice President, the oil and gas sector plays several strategic roles in the development of the country’s economy, namely as a source of energy, an industrial raw material, and a driving force for the national economy.

“The contributions of the oil and gas industry towards other industries will be very beneficial to increasing national capacity. Therefore, the utilization of domestic components in the oil and gas industry must be optimized,” Vice President Ma’ruf Amin said at the Opening of the 2nd National Capacity Forum 2022, at the Plenary Hall of Jakarta Convention Center (JCC), Central Jakarta, Wednesday (07/27).

Based on the 2020 Procurement Report, he said, as of March 2022 the oil and gas industry has provided contributions amounting to Rp143.6 trillion to other industrial business sectors, such as the oil and gas supporting industry, the employment sector, micro, small and medium enterprises (MSMEs), the transportation sector, the tourism sector, and the health sector.

“I’d like to express my appreciation for the contribution of the upstream oil and gas industry to state revenues, which until June 2022 was recorded to have reached US$9.7 billion or around 97% percent of the 2022 State Budget target,” he said, adding that the Indonesian people need to make joint efforts to restore self-sufficiency in the energy sector.

“I fully support the efforts of Ministry of Energy and Mineral Resources (ESDM) and the Upstream Oil and Gas Regulatory Special Task Force (SKK Migas) to achieve the target of national oil lifting at 1 million barrels per day and gas lifting at 12 million standard cubic feet by 2030,” Ma’ruf said.

Regarding efforts to increase upstream oil and gas investment, the Vice President urged the Ministry to create synergy with Ministry of Investment in preparing strategic measures to attract investors.

“I order Minister of ESDM and Minister of Investment to take extraordinary measures that can provide fiscal attractiveness for investors,” he said.

On that occasion, the Vice President also urged stakeholders to collaborate in providing support to boost domestic production, especially in funding and improving the quality of technology and human resources.

“I also push all parties to create synergy in increasing domestic production through various supports such as funding, increasing technological capacity and workforce quality, accelerating the certification process, as well as various regulations that support increasing domestic production,” he added.

Concluding his remarks, the Vice President expressed hope that the increase in national capacity could be constantly optimized by improving the quality of human resources and the industrial sector in order to rebuild the national economy.

“I hope that our efforts to continually improve national capacity through human resource capacity, the role of industry, as well as the use of domestic products will ultimately strengthen Indonesia’s role in the upstream oil and gas industry, as well as provide contributions to national and global economic recovery,” the Vice President remarked.

In the meantime, Minister of Energy and Mineral Resources Arifin Tasrif expressed hope for the advancement of Indonesia’s oil and gas industry in the international arena.

“In the future, we hope that there will be more and more oil and gas supporting industries that are able to compete at the international level. Hopefully, today’s event can make a big contribution in improving the ability of domestic producers so that the use of domestic products will increase and compete globally,” Arifin said.

Visit the official website of Vice President of the Republic of Indonesia via this link. (BPMI of Vice Presidential Secretariat/UN) (RIF/MUR)

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