The Minister of Finance is Proud of the Nation's Children to Lead the Rokan Work Area

Pekanbaru, March 25, 2022 – Sri Mulyani, Indonesian Minister of Finance, and the Ministry of Finance paid a working visit to the Rokan Working Area (WK) in Riau on Thursday (24/3). She was proud to see the nation's children lead the production activities in Indonesia's second-largest oil and gas working area in the country.

"Keep maintaining the level of competence and achievement to prove our ability to manage our natural resources," said Sri Mulyani, in the Operational Control Room of PT Pertamina Hulu Rokan (PHR) in Rumbai, Pekanbaru. The management of Pertamina Hulu Rokan by the nation's children will provide more benefits for the nation's APBN. She also appreciates PHR's positive value in their attention to the community and local businesses.

The Minister of Finance also asks PHR to develop and train resources. Both inside PHR and among the younger generation in universities throughout Indonesia, not just in Riau Province. The diverse ways of thinking are the strength of the Indonesia's productive generation. 

The Minister of Finance's visit was welcomed by Nicke Widyawati, President Director of PT Pertamina (Persero), Emma Sri Martini, Finance Director of PT Pertamina (Persero), Budiman Parhusip, President Director of PT Pertamina Hulu Energi (PHE) Subholding Upstream dan Jaffee A. Suardin, President Director of PHR.

"Based on the lessons learned from previous management transfers in other working areas, greater preparation is being made for the management transfer in WK Rokan. Therefore, Pertamina can maintain and increase production," said Nicke Widyawati.

Pertamina's Upstream Subholding launched an improved work program compared to last year. “In 2022, Upstream Subholding will drill 813 development wells. And 500 of them are in WK Rokan," Budiman Parhusip stated. Last year Subholding Upstream drilled 350 wells.

WK Rokan has a strategic role in meeting national energy needs. With an average yearly production of approximately 160 thousand barrels of oil per day (BOPD) for September-December 2021, the country's second-largest oil and gas WK produces a third of Pertamina's total oil production or nearly a quarter of the national production. WK Rokan's lifting results are also interested in consuming Pertamina's domestic refineries to support national energy security.

Meanwhile, Jaffee A. Suardin, Director of PHR presentation, added that PHR succeeded in improving the performance of WK Rokan after the transfer of management. Increased production, lower costs, massive and aggressive improvements, facility improvements, and maintaining production efficiency levels. PHR has also increased drilling rigs from 6 to 19 and workover rigs from 25 to 29 in less than four months.

PHR WK Rokan contributed IDR 9 trillion to state revenue for August-December 2021. The contribution consisted of IDR 6.5 trillion Non-Tax State Revenue (PNBP) and IDR 2.5 trillion in PPh, VAT, and regional taxes payments. After the management transfer of the Rokan WK on August 9, 2021, this contribution PHR activities' benefit to the state, region, and community.  The upstream oil and gas industry has a significant role in state revenue and development capital.

In 2022, PHR targets to drill 400-500 new wells in WK Rokan with a target production of around 180 thousand BOPD. To achieve this target, PHR will increase the number of drilling rigs to at least 23 rigs. In addition, PHR is also committed to increasing the portion of the Domestic Component Level (TKDN) to strengthen the national component. Currently, TKDN in PHR reaches more than 60 percent.

During this working visit, the Minister of Finance visited the PHR WK Rokan War room in Rumbai, the drilling location in Minas, and the Minas 1 Collecting Station (GS). In addition, the group also visited Pusat Latihan Gajah (PLG), one of the PHR Social and Environmental Responsibility (TJSL) program locations. The Minister of Finance, the Ministry of Finance, and Pertamina, also planted trees at GS 1 Minas and PLG Minas.

Besides direct benefits through oil and taxes, PHR operations also provide other multiplier effects such as meeting national energy needs, creating jobs, business opportunities for local entrepreneurs and increasing community welfare. WK Rokan operations are currently supported by more than 25,000 workers, most of whom are local Riau workers.**