KESDM records TKDN commitments in upstream oil and gas reaching USD 1.5 billion

Jakarta – The Ministry of Energy and Mineral Resources (KESDM) has recorded that Domestic Component Level (TKDN) commitments in upstream oil and gas activities up to April 2026 reached USD 1.5 billion, as part of efforts to maximise the domestic industry.

Secretary of the Directorate General of Oil and Gas at KESDM, Muhammad Rizwi Jilanisaf Hisjam, said that figure represents a combined TKDN commitment for the procurement of goods and services in upstream oil and gas, amounting to 62.95 percent of the total combined cost components of USD 2.38 billion.

‘If we look in more detail, procurement of goods commodities contributes a TKDN of 45.74 percent, while procurement of service commodities contributes a higher 69.42 percent,’ Rizwi said at a meeting with Commission XII of the DPR RI in Jakarta, on Thursday.

This data, he said, shows positive progress in the implementation of TKDN, while supporting local development targets. Based on procurement composition, service procurement provides the largest contribution at 72.29 percent, while goods procurement accounts for 27.71 percent.

‘Meanwhile, procurement of goods with a TKDN above 25 percent also shows a significant increase in the contribution to the use of domestic components,’ he said.

Rizwi added that for activities managed by SKK Migas up to April 2026, the total contract value reached USD 2.58 billion with total cost components USD 2.35 billion.

From that value, TKDN commitments achieved amounted to USD 1.48 billion or 62.92 percent cumulatively.

The regulation is also a key factor in strengthening the competitiveness of the national oil and gas supporting industries.

The issuance of Ministerial Regulation Number 35 of 2025 is a strategic step to create a more predictable business climate for domestic producers.