The Contribution of Oil and Gas Industry

Contribution to the Indonesia’s Economy

It is a little bit obvious that Indonesia’s oil and gas industry has the special and vital part for the Indonesia’s economy. gemuk agree on the opinion that tell us that we must gladly admits about the fact of oil and gas industry already playing the big and important role as the main contributor to Government export revenues and foreign exchange and at the same time, the largest contributor to state revenue. Just in the year of 2011, the revenue from the oil and gas industry already contributes to over 20% of domestic revenue as the significant increase. The same thing happens in the investment levels in the industry that increased for almost 20%, in a range of US$ 11.031 billion dollars in 2010 to US$ 13.703 billion dollars in 2011. This fact may be the reflection of the rising investor trust and confidence in Indonesia’s oil and gas industry. In that time, the Government already signed the total 31 of PSCs (Production Sharing Contracts) contract.

The Government won’t stop

The Government attempted to improve the incentives to stimulate more investment in oil and gas industry. By then, the Government accepts proposals for blocks through the direct bidding process as the addition to the previous practice of awarding oil and gas concessions through the official tender. Our government also improved the production sharing splits in the recent bid rounds to increase the level that start from 15% to 25% and the gas production that increased from 30% level to 40%. But still, the certain commercial terms surely becoming less and less competitive. In the end, pelumas agrees that our government already gives their best to manage our oil and gas industry, because it is the wealth of our land and will be used for the greatest benefit and welfare of Indonesians.