"The upstream oil and gas industry has an annual business turnover of hundreds of trillions of rupiah from investment, procurement of goods and services, and so on. Hence, it is important to prevent non-investment factors, such as bribery, from disruJakarta (ANTARA) - The Corruption Eradication Commission (KPK) presented an award to the Upstream Oil and Gas Regulatory Special Task Force (SKK Migas) in recognition of its success in preventing corruption in its upstream oil and gas activities.
KPK Chief Firli Bahuri handed the award to SKK Migas Chief Dwi Soetjipto during the National Anti-Corruption Movement at the KPK building here on Tuesday.
"SKK Migas has consistently fought against corruption. The award from the KPK is evidence of our consistent efforts to prevent corruption in the upstream oil and gas industry," Soetjipto noted in a written statement released on Wednesday.
Soetjipto conceded to the fact that the upstream oil and gas industry was one of the sectors vulnerable to corruption.
"The upstream oil and gas industry has an annual business turnover of hundreds of trillions of rupiah from investment, procurement of goods and services, and so on. Hence, it is important to prevent non-investment factors, such as bribery, from disrupting the process of making investment decisions," he stated.
One of the ways to boost investment in the upstream oil and gas sector is through the application of good corporate governance (GCG) at a high level, including preventing and eradicating corruption, he stated.
"Investment in the upstream oil and gas sector entails high risks and involves advanced technology, in addition to the competition among countries. Corruption has undoubtedly led to high costs and increased business uncertainty, something that investors dislike a lot," he pointed out.
Soetjipto emphasized that preventing corruption is one of the keys to boosting the credibility of the upstream oil and gas industry, creating sound business competition, improving investment climate, and curbing recovery costs.
"Consequently, state revenues can be optimized. Indonesia has 128 basins, with production in only 20 of them. In the absence of corruption, investment costs in Indonesia will increasingly become competitive and offer time certainty," he added.
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