PAL Indonesia Continues to Support the Independence of Upstream National Oil and Gas Industry

INDUSTRY.co.id - Jakarta - In order to increase the involvement of the National Industry on Oil and Gas Projects, the government has issued a Gross Split policy to replace the Cost Recovery scheme.

It is considered to be a fresh breeze for the rise of Local Industry to participate in the national economy. One of them is PT PAL Indoensia (Persero) who has been working for 21 years on oil and gas projects.

Director General of Engineering, Maintenance and Improvement Sutrisno declared his willingness to implement government policies to support oil and gas projects.

"We hope with the implementation of Gross Split, SKK Migas and KKKS remain fully committed in realizing the target of TKDN as mandated in PTK 007 Rev 4, so that the ideals of independence of the national upstream oil and gas supporting industries can be realized," said Sutrisno at Public Relation Working Meeting SKK Migas - KKKS last weekend.

Sutrisno added the need for revisions to PTK rule that significantly boost domestic industries to rise and compete competitively.

Since 1997, PAL Indoneaia has upgraded its competence and capability that originally worked on the construction of oil and gas projects, now expanding into the EPCI process. The resulting product was standard and international quality that operates up to now.

In addition, PT PAL Indonesia (Persero) has been able to conduct Reverse Engineering on energy and electricity products.

Gross Split Scheme is a scheme where calculation of profit sharing of oil and gas working area between Government and Oil and Gas Contractors is calculated in advance.

Through the Gross Split scheme, the State will get the revenue share of oil and gas and tax from exploration and exploitation activities so that state revenue becomes more certain. The state also will not lose control, because the determination of work area, production capacity and lifting, and distribution of results are still in the hands of the State.