The Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) is committed to contributing to economic and social development to support the achievement of the vision of a Golden Indonesia 2045.
One of these commitments is demonstrated by making Pancasila Sanctity Day a momentum to reflect on its role in realizing Pancasila values.
Head of the SKK Migas Program and Communications Division, Hudi D. Suryodipuro, stated that as one of the main pillars of national energy security, the upstream oil and gas industry plays an important role in supporting energy independence and creating multiple benefits for the country.
Also read: 5 Interesting Ways to Celebrate Pancasila Sanctity Day that are Full of Meaning
“The strategic role of the upstream oil and gas industry is very relevant to the values of Pancasila, especially in creating prosperity and social justice. With the spirit of mutual cooperation and social responsibility, SKK Migas together with all upstream oil and gas industry players continue to strive to create a sustainable positive impact for the Indonesian people ,” he said, quoted from a press statement, Wednesday (2/10).
Hudi added that the upstream oil and gas industry is one of the main drivers of the Indonesian economy, making a significant contribution to state revenues and opening up job opportunities.
In the first semester of 2024, this industry has contributed around IDR 114 trillion to the state, or around 30% of total state revenue. Apart from its direct contribution to state revenues, the upstream oil and gas industry also creates multiple benefits for other sectors, such as MSMEs, supporting industries and transportation.
Also read: Celebrating the Sanctity of Pancasila: How to Awaken the National Spirit
“It is hoped that this multiple benefit can encourage increased workforce capacity, which is key in preparing Indonesia to compete at the global level,” said Hudi.
In the last 6 years, until 2023, the contribution of the upstream oil and gas sector to MSMEs directly and indirectly reached around IDR 33.2 trillion, while the benefits to the workforce reached around IDR 22.9 trillion.
In addition, more than 150,000 workers are directly involved in this industry, with 99% of them being local workers. “This shows the upstream oil and gas industry’s commitment to empowering Indonesian human resources and reducing dependence on foreign workers,” explained Hudi.
Also read: Come on, obey and practice Pancasila values in the modern era
The increase in multiple benefits (multiplier effect) can also be seen from the signing of 10 Gas Sale Agreements (GSA) this year with a total value of US$1.2 billion or the equivalent of IDR 18.9 trillion, as well as the signing of 8 Procurement Contracts worth US$428 million or the equivalent of IDR 6. 4 trillion.
The upstream oil and gas industry’s commitment to increasing national capacity can be seen from the achievement of Domestic Component Level (TKDN) figures which have exceeded the target. As of August 2024, SKK Migas also noted that upstream oil and gas TKDN had reached 59.46%, exceeding the target set by the government, namely 57%.
By maximizing domestic production, this industry reduces Indonesia’s dependence on imports, saves foreign exchange, protects the country from price fluctuations and supports domestic companies to become hosts in their own country. This has a positive impact and ensures the stability of energy supplies to support national development.
“SKK Migas is committed to continuing to work together with the government and all stakeholders in realizing sustainable national energy security and creating multiple benefits for the Indonesian people. The upstream oil and gas industry will continue to be a strategic partner for the government on the journey towards a Golden Indonesia 2045,” concluded Hudi. (M-4)
#SKK #Migas #Committed #Contributing #Economic #Social #Development
