In the earlier post, we already described the need to acquire SKUP for your company. Before your company wants to enter the market for Indonesia’s Oil & Gas Industry, whether you want to be a supplier or manufacturer of goods or services, your company needs to be assessed by the Indonesian Government as represented by SKK MIGAS. In 2017, SKK Migas launched a program called APDN MIGAS, which stands for Apresiasi Produk Dalam Negeri Migas or Appreciation of Domestic Oil and Gas Product.
This program was launched by the Indonesian Government to promote the use of domestically produced goods and services in the Oil and Gas sector. From 2017, the program has already increased the use of domestic goods and services, while at the same time, decreasing the use of heavily imported goods and services in the Oil and Gas Industry. This is in line with the direction from Indonesia President, Joko Widodo, that Indonesia must decrease the imported finished goods and increase the manufacturing capability inside our country.
There are several reasons why Indonesia needs APDN Migas. First, the program help to boost the Indonesian economy. Oil and Gas companies used domestically produced goods and services, creating jobs and stimulating economic activity in the domestic manufacturing sector. Second, APDN Migas helps to reduce the country’s dependence on imported goods and services. This is important because it can help to protect the country’s economy from fluctuations in the global market. Third, the APDN Migas helps protect the environment by reducing the need to import goods produced in a less environmentally friendly way.
The APDN Migas program is divided into two parts :
- The first part is developing a database of domestic goods and services that are eligible for use in the oil and gas sector. This database is called the APDN Migas Directory or Buku APDN.
- The second part is the promotion of the use of domestic goods and services to Oil and Gas companies. This promotion is done through a variety of channels, including :
- The publication of the APDN Migas Directory or Buku APDN
- The organization of trade shows and exhibition
- The provision of training and technical assistance to a domestic manufacturer
The APDN Migas program has been successful in increasing the use of domestic goods and services in the oil and gas sector. In 2017, the oil and gas sector’s share of domestic goods and services was 40%. By 2022, this share has increased to 50%. The APDN Migas program is expected to continue to increase the use of domestic goods and services in the oil and gas sector in the future.