The Special Task Force for the Upstream Oil and Gas Business Activities (SKK Migas) supports the use of domestic steel materials, pipes and fabrication facilities in upstream oil and gas activities. This support was confirmed in the Workshop on Supply and Demand for the Use of Domestic Steel Materials, Pipes and Fabrication Facilities for Shipbuilding and Construction Activities in the Upstream Oil and Gas Industry, held last week in Batam.

SKK Migas’ Head of Goods and Services  Procurement Management Division, Erwin Suryadi said that the workshop organized by The Indonesian Iron & Steel Industry Association (IISIA) with the support of SKK Migas aims to bring together the supply side, the manufacturers of pipes and fabricated steels in the country, and the demand side consisting of the Contractors of Production Sharing Contracts (KKS Contractors), shipbuilding companies, fabricators, Engineering Procurement and Construction (EPC) Contractors, and Front-End Engineering Design Contractors in upstream oil and gas activities.

“This interaction is expected to be able to create synergy and openness among business players,” Erwin revealed. He added that the synergy that carries the concept of strategic alliance will be further outlined in the form of Memorandum of Understanding between SKK Migas and IISIA.

This workshop is an implementation of the Administrative Guidelines No. 007, Second Book, Revision 04 on Guidelines for the Procurement of Goods/Services (PTK 007 Revision 04) issued by SKK Migas this year. This regulation requires the PSC Contractors and their subcontractors to use domestic goods and services as contained in the Domestic Product Appreciation Book (APDN) issued by the Ministry of EMR, List of Inventory of Domestic Goods and Services issued by the Ministry of Industry and Approved Manufacturer List (AML) issued by SKK Migas.

The workshop also covered discussions on several future major projects in upstream oil and gas business activities by several PSC Contractors. The participants also pay a factory visit to one of the domestic pipe manufacturers.

The workshop was also attended by the Ministry of Industry, Fiscal Policy Office of the Ministry of Finance, and Batam Enterprises Agency (BP Batam).

IISIA’s Head of Cluster Flat Product Division, Purwono Widodo, who is also a Commercial Director of PT Krakatau Steel Tbk, expressed his appreciation of SKK Migas’ support for this workshop.

“This workshop is very important for us as one of the forms of technical collaboration among the industrial players to get ourselves ready to handle upstream oil and gas projects in the future so as to optimize the use of domestic products,” he concluded.