The Upstream Oil and Gas Industry Generates around IDR 700 Trillion for Indonesia |
As the representative of the state in carrying out the management of upstream oil and gas business activities based on Cooperation Contracts, the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) continues to make various breakthroughs to provide maximum benefits and revenue for the state as much as possible. people's prosperity.
Various efforts and strategies for making breakthroughs through simplification of business processes, consistency in implementing governance of the upstream oil and gas industry and the results of the organizational transformation of SKK Migas which have been launched since 2020 have yielded encouraging results. The move made by SKK Migas will generate around IDR 700 trillion from the upstream oil and gas industry to the state in 2022.
"We are grateful that the various steps taken by SKK Migas through simplification of business processes, transformation, digitization and system integration with various related parties have created transparent, accountable, cost-efficient and speedy process management of the upstream oil and gas industry so as to have a very significant impact where the industry upstream oil and gas can generate around IDR 700 trillion for the state,” said SKK Migas Deputy for Finance and Commercialization Kurnia Chairi in Jakarta (8/5).
Kurnia added that upstream oil and gas as a driving force for the national economy through oil and gas sales results directly contributed around Rp. 672 trillion, consisting of sales of oil and natural gas of around Rp. 583 trillion, including an allocation of funds for oil and gas revenue sharing of Rp. 17 trillion which was also felt by the producing regions. as well as other proceeds from upstream oil and gas of around IDR 89 trillion which includes signature bonuses, production bonuses, firm commitments, VAT payments, Oil and gas PBB, PDRD, and oil and gas income tax and other income.
This value was obtained through several breakthroughs that have been made, including accelerating revenue from the sale of petroleum through simplifying billing and payment business processes, making commercialization scheme flexibility through optimizing oil lifting and developing systems and procedures that support the accelerated process.
Support for the growth of certain industries that utilize natural gas is also being carried out through the implementation of Certain Natural Gas Prices (HGBT), which contribute around IDR 24 trillion.
Kurnia further informed that the breakthroughs and improvements made by SKK Migas in the implementation of oil and gas lifting in 2022 were able to secure state revenue so as to provide support for accelerating state revenue cashflow. "For every lifting that is recorded, 100% of the payment has entered the state account, even though in the field there are some lifting activities that are delayed due to weather and other disturbances. This step will secure state revenue and accelerate state cash flow so that it can support various development programs that have been stipulated by the Government in the State Budget," said Kurnia.
In addition, in terms of management and utilization of upstream oil and gas state property (BMN), SKK Migas has exercised control and supervision of the management of BMN and continues to make transformation and optimization efforts, whereby until the end of 2022, the value of upstream oil and gas BMN in the government's financial reports The Center amounted to IDR 598.71 trillion, an increase of 4% from the previous year and succeeded in optimizing BMN by recording PNBP for upstream oil and gas BMN management of IDR 251.22 billion, an increase of 35% from the previous year. SKK Migas has participated in encouraging the use of Badak LNG Refinery Assets where the upstream oil and gas industry has successfully deposited Rp 1.7 trillion to the state for the utilization of the Badak LNG Refinery.
"In 2022, SKK Migas and the Ministry of Finance have also exchanged data on the upstream oil and gas sector through the Integrated Information System (SIT) so as to provide transparent data and speed up the recording process which in turn speeds up business processes so that upstream oil and gas management activities become more optimal and support decision making. decisions related to policies in the upstream oil and gas sector”, said Kurnia.
In order to ensure optimal utilization and management of crude oil and condensate as well as natural gas, LNG and LPG to support the national economy, energy security and meet the needs of the domesic industry, SKK Migas has taken several steps and breakthroughs, including encouraging upstream oil and gas contractors to prioritize meeting the needs through the flow of oil and condensate (MMKBN) to Pertamina's refineries and actively mobilizing KKKS to make offers and negotiations with Pertamina prior to export, which is the implementation of the Minister of Energy and Mineral Resources Number 18/2021 concerning the priority of utilizing Crude Oil to Fulfill Domestic Needs.
"Only about 7% of the total lifting of oil and condensate is carried out for export purposes because it cannot be processed due to the incompatibility of the characteristics of the oil with the Pertamina Refinery. "Utilization of crude oil and condensate production for domestic refineries has a positive impact and multiplier effect on the national economy, creates jobs and increases industrial and transportation activities as well as increases added value which has a positive impact on the country and society," Kurnia explained.
Based on SKK Migas data, the current process optimization has been able to increase the value of oil and gas shipments that are part of the state. If in 2021 the state's share of oil and gas shipments is around USD 10.470 billion, then in 2022 it will increase by around 31% to around USD 13.703 billion. The increase in oil and gas commodity prices has become the momentum to make various strategic moves in optimizing lifting, commercialization schemes and accelerating accountable and transparent business processes.
In 2023, SKK Migas will continue the positive steps that have been implemented in 2022 and make new breakthroughs so that the direct and indirect benefits received by the state can be further optimized. These benefits are also felt and demonstrated by the performance of various industrial sectors involved in the national upstream-downstream oil and gas ecosystem. The upstream oil and gas industry expects support from the Government and related stakeholders to provide legal certainty with the issuance of the new Oil and Gas Law to provide greater investment certainty for investors.
The potential for upstream oil and gas in Indonesia in this energy transition era is still promising and attracting investor interest, which can be seen from the high investment plans for upstream oil and gas in 2023 which reached US$ 15.5 billion, an increase of around 26% compared to last year's realization and higher than the increase in investment. global upstream oil and gas which is 6.5%. In addition, the upstream oil and gas sector can also play an important role in achieving the target of net zero emissions in 2060, including by implementing high technology through CCS and CCUS.
"In the ongoing energy transition era, the potential for oil and gas can be optimally produced and utilized to support development and energy security as a form of implementing the mandate of the 1945 Constitution article 33. In particular, gas can also be optimized to carry out downstream policies and drive wheels domestic economy and industry in order to be able to compete in the international arena. So that the natural wealth of oil and gas is not left in the bowels of the earth when energy needs are met later from new and renewable energy, "concluded Kurnia.
SKK Migas is tasked with managing the upstream oil and gas business activities based on a Cooperation Contract. The establishment of this institution is intended so that the extraction of oil and natural gas resources owned by the state can provide maximum benefits and revenue for the state for the greatest prosperity of the people.[]