TEMPO.CO, Jakarta - The Upstream Oil and Gas Activities Special Task Force (SKK Migas) is targeting to achieve US$15.5 billion of actualized investments by the end of 2023. This is 28 percent higher than last year's investment realization which reached US$12.1 billion.

In the first half of this year, the Energy Ministry recorded a 21-percent increase in upstream oil and gas investment to US$5.7 billion in the first semester of 2023.

SKK Migas chief Dwi Soetjipto said that the upstream oil and gas investment trend in the first half reflects investors' response to the government's efforts to improve the fiscal system and investment enablers. But in terms of legal and contractual aspects, according to Dwi, investors still expect improvement. "Especially related to oil and gas laws that need to be completed immediately," he said.

Meanwhile, on the operation and technical sides, Dwi said, the investment hike in upstream oil and gas is still constrained by well drilling due to safety standdown, as well as the low availability of rigs and manpower.

"We hope that the increasing trend of upstream oil and gas investment globally will continue to encourage increased investment in Indonesia," Dwi said, adding that investment increases are very important to boost exploration and ensure there is no production decline.

Riri Rahayu

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