Monday, 18 November 2019 | 22:49 WIB

How the Indonesia Ministry of Industry Strengthens the Oil-Gas Industry

How the Indonesia Ministry of Industry Strengthens the Oil-Gas Industry (solusi)

JAKARTA, NETRALNEWS.COM - The Indonesian government is committed to continuing to strengthen the oil and gas and energy sector in the country. One of its strategic steps is realized through the downstream oil and gas industry policy and optimization of the level of domestic content (TKDN) for energy generation components.

"Both of these efforts have been encouraged by the Government of Mr. President Joko Widodo in the first period, and he is determined to continue this program in the second period," said Minister of Industry (Menperin) Airlangga Hartarto in Jakarta, Monday (06/17/2019).

He explained that the machinery industry and electricity supporting equipment, for example, were considered to be growing as demand increased in the domestic market. This industrial development also encourages optimization of TKDN so that it can substitute imported products.

"Our industry has been able to produce everything from electricity generation equipment to electricity transmission and distribution," he said.

Some electricity supporting products that have been successfully made by domestic industries, including the main components of the plant such as gas insulated switchgear (GIS), boilers, generators, power transformers, pumps, balance of plants (BOP), transmission towers, conductors, distribution transformers, and electric panel.

"This achievement also shows that our engineering competencies have been able to compete in producing competitive products for the domestic and export markets," said Airlangga.

This is in line with the government's focus which is increasingly intense in building the quality of human resources (HR), especially in the industrial sector. Moreover, continued Airlangga, the government is boosting the use of domestic products in all development sectors, especially electricity infrastructure development.

This effort is in line with the mandate of the Presidential Regulation Number 14 of 2017 concerning the Acceleration of Electricity Infrastructure Development. "According to these rules, the use of local products is one of the main points in the construction of a 35,000 MW power plant and a 46,000 km transmission network," he explained.

On the other hand, the Ministry of Industry has also issued regulations on optimization of TKDN for electricity infrastructure development through Minister of Industry Regulation Number 54 of 2012 concerning Guidelines for Using Domestic Products for Electricity Infrastructure Development.

The Minister of Industry also believes that the policy on the use of domestic products and the rapid development of electricity infrastructure, will bring extensive multiplier effects, especially in an effort to boost the performance of the national industrial sector.

"The existence of electricity is like the heart of the life of the industrial sector. That is why, it is not excessive if investors who want to invest their capital in Indonesia always ask about the availability of electricity supply, "he explained.

On this occasion, the Minister of Industry expressed his appreciation to Purnomo Yusgiantoro Center (PYC) who continuously contributed to Indonesia's progress, especially in the fields of energy and mineral research. "In the past three years, I have seen PYC continue to be productive in providing input to Indonesia's stakeholders and energy to help realize Indonesia's strong and progressive oil and gas and energy," he said.

Airlangga is also grateful for the award that has been given by the PYC to him. "This is truly a great honor for me. Of course I will make this award a motivation for me to continue working and contributing to the Country. I also want to convey that Mr. Purnomo is like a diesel engine, getting older and more rapid and productive, "he added.