Oil and Gas Investors Grapple with Rising Imported Raw Material Costs

Jakarta, CNBC Indonesia – Jereh Global’s Southeast Asia GM, Wesley Liu, affirmed investor support for strengthening Indonesia’s oil and gas infrastructure and technology. As a provider of compressor machines and gas technology equipment, Jereh Global continues to boost the Domestic Component Level (TKDN) through collaboration with Indonesia’s compressor component industry. Amid global geopolitical volatility and rising international oil prices, Jereh Group sees domestic market potential as an opportunity for increased production and investment in Indonesia’s oil and gas sector. However, this uncertainty also poses challenges for the industry due to higher costs for imported raw materials such as ‘gas engine transmission’ from the US. Transactions are conducted via local currency transaction (LCT) schemes, mitigating the impact of Rupiah depreciation against the US dollar.