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Oil, gas sector key driver for economy: Association
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Power house: Locals fish near an oil refinery belonging to state-owned oil and gas giant Pertamina in Cilacap, Central Java. (JP/Agus Maryono)
T
span class="m_-3924403967587887737gmail-m_-6837502011984667956s1">The Indonesian Petroleum Association (IPA) has reiterated the importance of improving the country’s investment climate to attract more investors in the upstream oil and gas sector to maintain its multiplier effects for the economy in the long run.
Last year, the upstream oil and gas sector contributed US$23.7 billion to Indonesia’s gross domestic products (GDP), or 3.3 percent of the country’s economy.
“Every $1 million of investment created an added value worth $1.6 million, additional GDP worth $700,000 and employment opportunities for roughly 100 people,” IPA board member Tumbur Parlindungan told reporters in Jakarta on Wednesday.
(Read also: Government defends oil and gas gross-split scheme)
He even said that if Indonesia could maintain its oil and gas productivity at 2015 level of 1,931 thousand barrels of oil equivalent per day, the country could get a 1.2 percent additional GDP growth per year by 2025.
“So, if we can attract more investors, our economic growth will be bigger as well, because we can see a domino effect from the oil and gas sector,” said Tumbur, who also serves as the CEO of oil and gas firm PT Saka Energi Indonesia.
Nonetheless, he also questioned Indonesia’s attractiveness because many other countries were currently trying to attract investors in oil and gas industry amid the current low oil price environment.
Therefore, the IPA hopes to raise the issue in its upcoming 41st convention and exhibition, one of the biggest energy get-togethers in Southeast Asia, which will take place on May 17 to 19 at the Jakarta Convention Center. (hwa)
