Oil and Gas’s Domestic Component Level Increased for 7 %

Oil and gas sector achieved a good record for the increase of Domestic Component Level (TKDN). Oil and gas TKDN increased up to 7 % comparing to the previous level 54 % to be 61%.

“Oil and gas TKDN increased 7 % of the previous year 54 % to 61 %, then the investment in the mid of this hard economic situation reached US$ 15, 93 billion of the target for US$ 23, 7 billion,” said the Minister of Energy and Mineral Resources, Sudirman Said in a press conference after signing the Cooperation Contract of Offshore North West Java (ONWJ) Working Area and Mahakam Working Area, Tuesday (29/12).

Oil and gas TKDN also has been involved the participation of State-Owned Enterprise (BUMN) as goods and service supplier since 2010. The amount of procurement involving BUMN during the period of 2010 – 2014 was more than US$ 4, 51 billion. Hopefully, the participation of BUMN could be increased in the future, so TKDN will be higher.

New, Renewable Energy and Energy Conservation TKDN was recorded for 35 % up to the end of 2015, which was a little higher than the previous year for 34, 4 %. Electricity sector for power plant reached 47 %, while for substations was for 64 %, which slightly increased of the previous year only for 29.70 %.

Source: www.esdm.go.id