JAKARTA – The Central Executive Board of the Indonesian Young Entrepreneurs Association (BPP HIPMI) encourages entrepreneurs, young people, to take part in the oil and gas (oil and gas) industry. With various massive and aggressive programs made and tried to be implemented by Indonesian upstream oil and gas industry players to restore the glory of the upstream oil and gas industry.
“HIPMI encourages young entrepreneurs to join the oil and gas industry, because there is a transfer of knowledge. Do not let foreign entrepreneurs exist, there must be new medco-medco from within the country,” said chairperson of BPP HIPMI Mardani H. Maming, in a written statement at Jakarta, Friday (29/1/2021).
Programs such as massive drilling in the rokan working area which will end in August 2021, drilling 616 wells in 2021, the 2021 procurement plan reaching USD6,085 billion up to the achievement of the target of the Domestic Content Level (TKDN) of goods and services in 2021 of 57 percent is a few programs launched by the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) and the cooperation contractors that will try to be realized in 2021.
“HIPMI supports the steps taken by SKK Migas and the Investment Coordinating Board (BKPM) to fix the business climate in the upstream oil and gas sector to increase TKDN and so on. State-owned enterprises (BUMN can do this) by local entrepreneurs, “he said. If further analyzed, from the KKKS’s planned expenditure of USD6.085 billion, if there is 57 percent prioritized for the domestic industry, it is estimated that it will reach a figure of USD3,468 billion or equivalent to IDR 48.5 trillion (exchange rate USD1 = IDR14. 000.
This figure should be able to help the central government and local governments in their efforts to make state expenditures through the APBN and APBD to stimulate the economy in society. “Do not do it by foreign entrepreneurs, local and regional entrepreneurs must use the potential figure from the work program that has been conveyed by SKK to make it equal,” he said.
As one example, in several discussions with company associations in Indonesia, that to increase the competitiveness of domestic industries or companies, technical support is needed to find out the required specifications and if plans for the quantity of products to be purchased, funding support for it can be given the convenience of getting access to credit at competitive interest rates and fiscal policy support that protects domestic companies from having to pay higher taxes compared to products imported from abroad.
“When examined further, the support needed is interrelated and needed for domestic companies or industries to determine the feasibility analysis of the investment to be carried out. However, each of these supports cannot be granted by the agencies already mentioned in authority, “he said.
We can see the difficulty in increasing the TKDN figure for domestic industries or companies from the lack of short- and medium-term achievement targets for several commodities written in the intended roadmap list. The difficulty regarding the achievement of the TKDN target is getting more complex. the government is also being asked to do efficiency (cost recovery in the upstream oil and gas industry) which results in domestic industries or companies having to become more efficient in producing goods produced.
“To respond to the government’s mandate through the various provisions above, in order to speed up the development process of a competitive domestic industry or company and provide a large multiplier effect for the Indonesian economy, more roles are needed from BKPM together with SKK Migas and supported by other stakeholders to appear more active to cooperate with all these stakeholders and provide guidance to domestic industry players, “he concluded.
So, the former Regent of Tanah Bumbu, South Kalimantan added, he could catch up with the target of achieving the TKDN roadmap which was stated in the Minister of Energy and Mineral Resources No. 15 of 2013, and could make the domestic industry more able to show its existence in the country. “The roles of BKPM, SKK Migas and other stakeholders and the support and goodwill of business people in BUMN and private sector are what we need to wait for,” he concluded.
Anang Fadhilah
