CLOSING CEREMONY OF THE 45TH IPA CONVEX 2021: INDUSTRY PREPARES TO OPTIMIZE NATURAL GAS UTILIZATION IN SUPPORT OF ENERGY SECURITY
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The 45th IPA Convex which was held on 1-3 September 2021 was officially closed virtually by the Head of SKK Migas Dwi Soetjipto on Friday (3/9) afternoon. All stakeholders in the upstream oil and gas sector agreed to optimize the use of natural gas as a solution in reducing carbon emissions, while improving the investment climate to attract oil and gas investors, so that the 2030 oil and gas production target can be achieved.
In his closing speech, Dwi said that 2020 and 2021 are hard years for all industries, including upstream oil and gas. Despite the pandemic, the upstream oil and gas industry must continue to make various efforts in carrying out exploration and production, to achieve the targets set by the State Budget. “The upstream oil and gas industry is not only a producer of energy, it is also a driving force for the national economy. Oil and gas projects have encouraged the emergence of economic activities in various places in Indonesia,” he said.
Regarding the long term, Dwi added, the government has set an oil and gas production target of 1 million BOPD of oil and 12 BSCFD of natural gas by 2030. He is optimistic that this target can be achieved, considering that Indonesia still has abundant potential natural resources.
“We certainly need to intensify and accelerate the work program to meet some pending targets. We also need several enablers to monetize additional resources from oil and gas exploration and non-conventional open areas,” he said.
In addition, Dwi said that the government strongly supports the efforts to achieve these targets. “The President of the Republic of Indonesia in his state address on August 16, 2021 has mentioned several strategies and enablers to achieve the Long-Term Plan including regulatory and fiscal amendments,” he said.
He said the government is aware that global competition for investment is getting tougher, especially with the Covid-19 pandemic. To that end, the government seeks to improve the national oil and gas investment climate through various policy changes; both fiscal and non-fiscal such as improving tax facilities, fixing DMO (domestic market obligation) prices up to 100% of the ICP for PSC Cost Recovery, and exemption or relief from branch profit tax (BPT).
The President of IPA Gary Selbie in his remarks expressed his gratitude for the government’s support for the 45th IPA Convex. “The Minister of Energy and Mineral Resources Mr. Arifin Tasrif has been willing, on behalf of the President of the Republic of Indonesia, to open the 2021 IPA Convex event, showing the Government’s support and concern for the sustainability of the national upstream oil and gas industry,” he said.
Gary also appreciated the Deputy Minister of Finance and Deputy Minister of Environment and Forestry who were willing to attend as speakers at the Ministerial Round Table session discussing The New Landscape of Oil and Gas Investment in Indonesia. “The presence of key-stakeholders from outside the energy sector shows the right collaboration to create a strong national energy sector,” he said.
He conveyed that the active participation of all stakeholders in the IPA Convex 2021 event through several discussions revealed the concern and support of all parties to the upstream oil and gas industry in improving the oil and gas investment climate in Indonesia. “All discussions went well and the results obtained during the 3 days’ IPA Convex event will be followed up by IPA along with stakeholders in the upstream oil and gas industry in the future,” he added.
During the three days, the IPA Convex 2021 has held various discussion sessions discussing several issues of mutual concern to stakeholders in the oil and gas industry. The discussion sessions held included Plenary Sessions, Technology Sessions, Business Matching, and others.