Industry observer Kus Rahardjo has spotlighted the Indonesian\nupstream oil and gas industry\u2019s minimal use of domestic components. In\nhis observations, imported products are increasingly dominating, thereby\nstifling the domestic industry.<\/p>\n
\u201cForeign companies enter by bringing in finished goods from abroad,\nreplacing the role of local industries. In many cases, domestic products\nwith equivalent quality do not receive the same opportunities. This is\nnot just about quality. It is about bias and opportunities,\u201d Kus\nemphasised.<\/p>\n
He warned that this situation could systematically shift the role of\nlocal industries if not accompanied by policies supporting the use of\ndomestic products.<\/p>\n
In this context, the Domestic Component Level (TKDN) policy should\nserve as a strategic instrument to strengthen national industrial\nself-reliance, particularly in the upstream oil and gas sector, which\ninvolves high investment values and significant operational\ncomplexity.<\/p>\n
\u201cIf TKDN implementation is not optimal, the industry can still\noperate with the support of imported products, but there is a risk of\nweakening domestic competitiveness in the long term. Are we willing to\nbecome mere spectators in our own home?\u201d Kus questioned.<\/p>\n
In his study, over decades, Indonesia has built capabilities in the\nsupporting oil and gas industry. Various domestic producers are capable\nof manufacturing equipment, components, and technologies needed for\nupstream operations.<\/p>\n
They are not mere supplements but players who understand the field\u2019s\ncharacteristics, geographical challenges, and specific domestic industry\nneeds.<\/p>\n
However, what is happening now, he continued, is that when local\ncapabilities are already available, the upstream oil and gas industry is\ninstead filled more by foreign players.<\/p>\n
\u201cThis phenomenon is not merely free market dynamics. When local\nproducts do not get fair opportunities, what occurs is no longer healthy\ncompetition but a systematic shift in roles,\u201d he stated.<\/p>\n
Dangdut Analogy<\/p>\n
Kus likened the current upstream oil and gas industry to the dangdut\nmusic industry, which is now often performed by foreign singers.<\/p>\n
\u201cDangdut music will remain alive, even if sung by anyone. However,\nwhen the original performers are sidelined from their own stage,\nsomething essential is lost, and identity slowly fades,\u201d he said.<\/p>\n
The upstream oil and gas sector remains crucial in supporting\nIndonesia\u2019s economy and energy resilience, especially amid the energy\ntransition phase.<\/p>\n
From 2020 to 2025, the total value of upstream oil and gas activity\ncontracts reached more than Rp725 trillion, with a TKDN commitment of\n59% or around Rp388 trillion.<\/p>\n
The existence of the upstream oil and gas industry also complements\nthe benefits from the downstream oil and gas sector, which drives\nregional economies.<\/p>\n
Upstream oil and gas investments are projected to reach between\nUS$16.5 billion and US$16.9 billion by the end of the year.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/analyst-warns-that-flood-of-imported-products-is-eroding-tkdn-in-oil-and-gas-1774018278", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }