Why Oil and Gas Very Important for Indonesia

The decision of the Constitutional Court declared the Executive Agency for Upstream Oil and Gas (BP Migas) has disbanded. Aftermath of the decision on Tuesday (13/11), oil and gas operations ceased 48 hours or two days and two nights. Cessation of upstream oil and gas operations to cost around Rp1 trillion.

The government acted quickly, establishing successor agency BP Migas.  Indonesian government deserves appreciation for acting quickly so the loss was not greater. The government then formed the Task Force The Oil and Gas Upstream Executing (SKSP Migas) under the Ministry of Energy.  If the investment climate is not maintained, it is feared they will think twice to invest in Indonesia.

Investment in oil and gas is relatively good. In 2010, the realization of upstream oil and gas investment reaches US $ 11.03 billion.  In 2011, realization increased of 23 per cent to US$ 13.59 billion. At this year's target will go up to US$ 15.8 billion. 2013 oil and gas investment target of US$ 17 billion.

Oil and gas sector remains one of the main state revenues. According to official data of BP Migas (before dissolved), in 2010, oil and gas revenues accounted for US$ 26.49 billion. The number is higher than the target of US$ 26.06 billion.

In 2011, revenues increased to US$ 35.79 billion, or 10 percent higher than the budget target of 2011. Budget 2012, established oil and gas revenues of US$ 33.485 billion. BP Migas predicted year 2012 revenues from oil and gas will reach US$ 34.96 billion. Government targets state revenues from oil and gas sector in 2013 reached US$ 31.75 billion. Over the last ten years, revenues from oil and gas targets are always reached.

Of course, all departments and agencies need to work hard to convince investors that the oil and gas investment climate remains conducive. Long-term National Energy Policy said in 2025 the use of petroleum in 2025 is estimated at 1.34 million BPOD, while for natural gas of 11.2 BSCFD.

The Government has made a strategy for achieving the projected oil and gas production in accordance with the national energy needs by 2025. Various programs have been designed as increased activity of G & G and General Survey in an open area, offers a new working area, the optimization of exploration and exploitation PSC commitments, accelerate the approval process POD, WP & B, AFE and Procurement Operations.

There is also a program optimization of existing production fields and accelerate the production of new fields, re-opening the field / old wells and increasing marginal field development, and the coordination and synchronization of regulations with related agencies such as the Forestry Department, Ministry of Finance, Ministry of Environment and Local Government. The number of parties involved, requires cooperation and better coordination. Rihad Wiranto