When we talk about Indonesia’s wealth, there are many areas worth discussing—from the country’s biodiversity to its abundant natural resources.
But not everyone is aware of the "golden potential" this nation holds. Many still question the role that Indonesia’s resources play in the economy, particularly when it comes to oil and gas.
So, how big is the oil and gas industry's potential, and how does it contribute to economic development? Let’s explore.
The Role of the Oil and Gas Sector
To better understand the significance of oil and gas to domestic economic growth, here are several key contributions:
Revenue Sharing (Dana Bagi Hasil / DBH)
When an oil and gas project operates in a region, the profits aren’t kept by one party alone. Through a revenue-sharing scheme (DBH), the income must be distributed among key stakeholders, including the central government and the local government (city/regency/province) where the operations are based.
Support for MSMEs
The presence of oil and gas projects boosts local micro, small, and medium enterprises (MSMEs). Projects require supporting infrastructure, materials, and labor—much of which comes from nearby communities.
The government often mandates the use of local suppliers and workforce to stimulate regional business growth.
Job Creation
Indonesia continues to face high unemployment rates. Oil and gas projects can help reduce this by absorbing local workers.
Government policy encourages these companies to hire Indonesian citizens—especially locals who meet the required qualifications. These projects typically require large-scale staffing, creating significant employment opportunities.
Social Responsibility
Oil and gas projects can impact surrounding environments and communities.
For this reason, companies and local governments bear a social responsibility to address and compensate for any disruptions. This could include environmental initiatives or social programs to benefit nearby residents.
So, How Important Is This Industry?
After reviewing the above points, what do you think? Does the oil and gas sector impact the national and regional economy? We believe the answer is yes. This industry offers great potential for both domestic and global development.
Transcon Indonesia is proud to support the oil and gas industry through professional services—from inventory management systems and bonded logistics centers (PLB), to warehouse leasing and logistics operations.