This is the Multiplier Effect of the Upstream Oil and Gas Industry

The upstream oil and gas industry has always been a crucial part of Indonesia's economy. This is reflected in macroeconomic indicators within the State Budget (RAPBN), which consistently uses oil and gas lifting as a reference in determining state revenue and expenditure.

Furthermore, according to an analysis by The Boston Consulting Group, Indonesia's upstream oil and gas industry creates multiplier effects on the national economy, both directly, indirectly, and inductively. Directly, the chain effect is felt by oil and gas operators and oil and gas service providers. Indirectly, it impacts the transportation sector, downstream industries, information technology, and others. Inductively, the impact is felt in the utility, infrastructure, and national security sectors, among others.

In SKK Migas's release titled "Outlook of the Upstream Oil and Gas Industry to Support Economic Growth in 2018," every Rp 1 billion spent in the upstream oil and gas industry generates Rp 1.6 billion in economic output and adds Rp 700 million to the Gross Domestic Product (GDP). In addition, it creates a ripple effect, adding Rp 200 million to household income and providing 10 job opportunities.