Jakarta — The Special Task Force for the Upstream Oil and Gas Business Activities (SKK Migas) and PT Garuda Indonesia (Persero) Tbk have signed a Memorandum of Understanding (MoU), to build business synergy between the two bodies. The Memorandum of Understanding was signed by Chairman of SKK Migas Amien Sunaryadi and President Director of Garuda Pahala N. Mansury, on Friday, 13 October 2017.

“This Memorandum of Understanding aims at optimizing the use of domestic services owned by Garuda Indonesia and supporting the upstream oil and gas business activities in Indonesia,” Amien revealed.

The upstream oil and gas industry is consistent in the implementation of the mandatory use of domestic capability, including involving SOEs, Regional SOEs, SMEs and Cooperatives as outlined in Administrative Procedure Manual (PTK) no. 007 Rev 4. On this occasion, domestic capability used are domestic passenger air transport services conducted by State-Owned Enterprise Garuda Indonesia.

Cooperation between Garuda Indonesia and the upstream oil and gas industry for passenger air transport services has long been maintained. In this new memorandum of understanding, the scope of cooperation is further expanded to include the provision of passenger air transport services, the provision of cargo services, the provision of aircraft charter services, and other cooperation forms to be agreed in writing by both parties. Other potential cooperation forms that can be explored by both parties are catering service and aircraft (turbomachinery) maintenance facility service.

“Implementation of such cooperation will be formulated further in detail in the form of cooperation agreement agreed by both parties,” Amien said.  By entering into the MoU with Garuda Indonesia, it is expected that the upstream oil and gas industry can create more efficiency in the use of passenger air transport services and other related services.

“The spirit of efficiency, acceleration and reliable operation form the basis for the development of cooperation undertaken by SKK Migas to address the current challenges in upstream oil and gas operations,” Amien added.

In the last two years, 147 Contractors of Production Sharing Contracts (PSC Contractors) in the upstream oil and gas industry have been registered using Garuda Indonesia Airlines consisting of 70 PSC Contractors in the production stage and 77 PSC Contractors in the exploration stage. During this period, the realization of expenditures of these PSC Contractors for Garuda Airlines services is approximately Rp 336 billion. In the next three years, this expenditure is expected to reach Rp 600 billion.

The potential use of air transport services is still wide open in the upstream oil and gas sector. In addition to existing routine operations, the need for more air transport services is to support the on-going and upcoming large infrastructure projects in the upstream oil and gas industry. The potential for this need is increasing along with the efforts of SKK Migas to encourage exploration activities in various locations. The air transport services are not only for the transportation of personnel, materials and operational equipment of the PSC Contractors, but also for contractors and subcontractors expanding the existing potential.

This will certainly encourage the creation of a bigger multiplier effect in addition to the expected efficiency and acceleration. The upstream oil and gas operations located in remote areas can also create a positive impact in the form of acceleration of regional development, including the development of facilities and infrastructure supporting air transport services ranging from pioneer services to growing services like those in the existing operation areas.

“We hope that all stakeholders can support upstream oil and gas operations so that the multiplier effect created by the presence of the industry will be truly perceived by the region,” Amien further said.

Meanwhile, on the same occasion, the President Director of Garuda Indonesia, Pahala N. Mansury said that the cooperation between Garuda Indonesia and SKK Migas which has been established since 2010 has a deed meaning, considering that this partnership creates a synergy that provides added value for Garuda Indonesia and the companies associated with SKK Migas. “The cooperation also provides value and meaning for Garuda Indonesia, in line with the stages of service development that we are currently continuing to implement. The trust that has been given by SKK Migas to Garuda Indonesia by becoming a “corporate account” since 2010, serves as a pride as well as a motivation for us to continue to develop services and provide the best to service users.”, Pahala added.

Through the cooperation with this corporate account, Garuda Indonesia does not only provide support in the form of special rates for both domestic and international flights served by Garuda Indonesia but also provides a dedicated corporate check-in counter (at Soekarno-Hatta International Airport, Changi Airport Singapore and Bangkok International Airport), as well as “dedicated person-in-charge” ready to assist the needs of SKK Migas and PSC Contractors related to Garuda’s flight service.