SKK Migas needs to do some measures
Nusa Dua, Bali (ANTARA) - Coordinating Minister for Economic Affairs Airlangga Hartarto has urged the special task force for upstream oil and gas business activities (SKK Migas) to formulate a breakthrough policy to boost oil and gas production.

"SKK Migas needs to do some measures," he said at the “2022 International Convention III for the Upstream Oil and Gas Industry” in Nusa Dua, Badung district, Bali, on Thursday.

Such a breakthrough is necessary given the decline in domestic oil and gas production; and so that the situation, incentives, and investment climate in the national oil and gas sector can be made better to encourage the energy transition toward new and renewable energy, he explained.

"Because this is a necessity that we must see together so that investment in the upstream oil and gas sector continues to work in a conducive manner. The need for incentives, both fiscal and non-fiscal, needs to be discussed in depth among stakeholders," he said.

One of the oil and gas development projects whose progress has slowed is the eternal gas field in the Masela Block, Maluku, the minister informed.

He called for a review of the project's effectiveness and for revisions to be made if the regulations are deemed ineffective in boosting investment.

"If it is deemed insufficient to encourage the growth of the oil and gas industry, there is possibility to see whether the existing regulations are effective in promoting it, and if they are not yet effective, revisions need to be made in the direction of improvement," he added.

The minister also sought an improvement in collaboration between the government, business entities, and contractors so that the oil and gas production target can be met.

According to the task force, the upstream oil and gas industry is aiming to increase national oil and gas production to 1 million barrels of oil per day and 12 billion cubic feet of gas per day, respectively, by 2030.

If the goal is achieved, the target will affect Indonesia's state revenues and exports.

"Right now, our exports are positive at 5 billion (US$) but the balance of oil and gas on a monthly basis is negative, can be close to 2 trillion," he added.

Related news: Minister urges oil, gas companies to apply decarbonization
Related news: Indonesian upstream oil, gas industry needs US$179-billion investment
Related news: SKK Migas discovers hydrocarbon fields in West Papua

Translator: Dewa Ketut S W, Mecca Yumna
Editor: Sri Haryati
Copyright © ANTARA 2022