The figure reflects the combined commitment for the procurement of goods and services in the oil and gas sector, which reached 62.95 percent of the total combined cost component valued at US$2.38 billion, according to Secretary of the Directorate General of Oil and Gas, Muhammad Rizwi Jilanisaf Hisjam.
“If we look more specifically, the procurement of goods contributes 45.74 percent to the domestic component level, while the procurement of services contributes a higher 69.42 percent,” Rizwi said during a meeting with Commission XII of the House of Representatives (DPR) in Jakarta on Thursday.
He stated that the data showed positive progress in implementing the domestic component level policy while supporting local industry development targets.
Based on the procurement composition, service procurement accounted for the largest share at 72.29 percent, while goods procurement contributed 27.71 percent.
Rizwi added that for activities managed by upstream oil and gas regulator SKK Migas, the total contract value reached US$2.58 billion, with a total cost component of US$2.35 billion.
Earlier, the Industry Ministry assessed that the simplification of Domestic Component Level (TKDN) assessment procedures and implementation oversight through Industry Ministerial Regulation No. 35 of 2025 had improved the business climate in the domestic oil and gas industry.
The regulation is also considered a key factor in strengthening the competitiveness of Indonesia’s oil and gas supporting industries.
The ministry stated that the issuance of the regulation marked a strategic step toward creating a more predictable business climate for domestic producers.
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Translator: Ahmad Muzdaffar Fauzan, Yashinta Difa
Editor: Primayanti
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