Upstream Oil and Gas Industry Seen as Key Source of Regional Revenue
The contribution of upstream oil and gas to regions can be seen directly from the oil and gas profit-sharing funds (DBH migas) and land and building taxes (PBB) in the oil and gas sector.
Jakarta (ANTARA) - The upstream oil and gas (migas) industry is seen as having a strategic role in driving regional economic growth through various direct and indirect contributions.
One tangible form of such contribution is reflected in the flow of profit-sharing funds (DBH) from migas and land and building taxes (PBB) in the migas sector, which serve as an important source of regional revenue.
Rinto Pudyantoro, a lecturer at the Faculty of Economics and Business, Universitas Pertamina, explained in a statement in Jakarta on Thursday that the presence of the upstream migas industry has broad and multi-layered economic impacts, particularly through state and regional revenue mechanisms.
According to him, DBH migas is part of state revenue that is redistributed to producing regions.
Meanwhile, PBB migas is one of the largest tax components that also provides significant contributions to regions. Even nationally, the contribution of PBB from the migas sector accounts for a very large portion of the total PBB receipts structure.
“In the national context, the migas sector contributes around half of the total PBB receipts. Interestingly, the majority of these receipts, about 98 percent, are redistributed to the regions. This means the economic benefits of the migas sector are very substantial for producing regions,” Rinto stated.
At the regional level, such contributions are also evident, for example, in Tanjung Jabung Regency, Jambi. Operational activities by PetroChina International Jabung Ltd provide significant contributions to regional revenue.
Based on 2025 data from the Ministry of Finance (Kemenkeu), contributions from the sector reached around Rp698 billion through DBH migas and approximately Rp280 billion from PBB in the migas sector.
Furthermore, Rinto conveyed that the impact of the upstream migas industry does not stop at direct revenues but also has a much larger multiplier effect on the economy.
“Often, we only look at it from the perspective of state or regional revenues, but that is only a small part of the overall impact. Upstream migas activities create a chain effect, from job creation and local economic circulation to support for other sectors such as electricity and industry,” he said.
With ongoing contributions, the upstream migas industry is expected to remain one of the main pillars in driving regional economic development.
Looking ahead, strengthening synergy between the government, regions, and industry players is key to optimising the economic benefits of the sector in a sustainable manner.