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Indonesia govt determined to support oil and gas supporting industries

JAKARTA (Rambu Energy) – Oil and gas sector is one of the countries’ strategic industries, not only in term of its contribution to the State Budget, which reached over Rp300 trillion per annum, but also in creating trickle down effects on other or supporting industries.

The new government under President Joko Widodo has realized this and has sent clear signal of the government’s determination to support the industry. On this background, the Industry Minister Saleh Husin, visited various oil and gas supporting industries in Batam, Riau Islands, which is known as the center of oil and gas service industries.

The Industry Minister’s main goal was to get the first hand picture of the real condition of the oil and gas supporting industries on the ground, their problems and hopes on what the government should do.

On Thursday (Nov 12.), Saleh Husin visited oil and gas rig producing facilities owned by PT Citra Tubindo Tbk in Kabil industry area. The minister said he will report his visit to President Joko Widodo about the condition of oil and gas supporting industries.

The government, he said, is determined to support domestic industries so that they will be ready when entering the ASEAN Economic Community that will take effect in 2015. Citra Tubindo is owned by tycoon Kris Taenar Wiluan. Some of its oil and gas rigs have been supplied to the state owned oil and gas company unit PT Pertamina Drilling Service Indonesia (PDSI) as well as large international oil and gas companies operating in Indonesia.

During his visit, the minister encouraged oil and gas supporting industries to increase the use of domestic resources. He believes that the oil and gas supporting industries have a huge potentiality to grow further, reported.

The Industry Ministry data shows that there are 2,883 companies engage in oil and gas industries, comprised of 749 companies engage in drilling, inspection and transportation, 2,000 companies in oil and gas service consultation and 134 companies involve in the production of oil and gas equipment, such as pipe, rig and other materials.

“We need to support these industries,” he said. (*)

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