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Indonesia upstream regulator simplifies procurement procedure guidelines

Onshore Ujung Pangkah - foto OS

An oil and gas processing facility in East Java (photo: NS/

JAKARTA ( – The Indonesian Special Task Force for Upstream Oil and Gas Business (SKK Migas) has revised the Work Procedure Guidelines (PTK) that regulates the supply chain of  oil and gas production sharing contractors (PSC).

The Head of SKK Migas Amien Sunaryadi said that the purpose of the revision is to speed up and simplify the tender process, increase the utilization of domestic products and the involvement of national companies as well as improving the accountability of the procurement of goods and services or tender.

As a case in point, a tender that requires the approval of the SKK Migas is the tender that has a value of over Rp200 billion or US$20 million. Previously, a procurement tender that values above Rp50 billion or US$5 million must get approval from SKK Migas.

He said that the tender mechanism for drilling and offshore seismic has also been simplified.

“The step is taken to meet the needs of upstream oil and gas companies that need speed process. The hope is that this (simplication procedure) will support the effort to achieve oil and gas production target that has been set by the government,” Amien Sunaryadi said. (*)

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