Inauguration of SKK Migas Leaders to Improve the Organization Performance

8 February 2013

Jakarta – Chairman of Special Working Unit for Upstream Oil and Gas Business Activities (“SKK Migas”) Rudi Rubiandini inaugurates the Leaders and a number of officials within the organization structure to further improve the performance in pursuing the target of Oil and Gas production determined by the Government.

The leaders of SKK Migas inaugurated today are Migas Johanes Widjonarko as Vice Chairman of SKK, Aussie B. Gautama as Deputy Chairman for Planning Control, Muliawan as Deputy Chairman for Operations Control, Akhmad Syakhroza as Deputy Chairman for Financial Control, Gerhard Marteen Rumesser as Deputy Chairman for Business Support Control, Widhyawan Prawiraatmadja as Deputy Chairman for Commercial Control, Gde Pradnyana as Corporate Secretary and Priyo Widodo as Internal Supervisor. In addition to the Leaders, the other officials of SKK Migas namely 5 Experts and 49 Division Heads/Similar Level are also inaugurated.

“All personnel in the SKK Migas organization either the leadership team of management or its subordinate officials, are originated from internal SKK Migas, because they are the ones who know best the life and breath of their organization. I have also rotated part of you because I would like to find the most appropriate position for accommodating your skills. In other words, I am trying to put people in their right position.” said the Chairman of SKK Migas Rudi Rubiandini during the inauguration ceremony at the SKK Migas office, on Friday (08/02).

Rudy emphasized that the tasks in the future would not be easy. “We have short term, medium term and long term targets to be accomplished. Short term target is to achieve production targets for the years of 2013 and 2014. As per the Government’s guidance, the oil production in the year of 2014 should reach 1 million barrels.”

While the medium term target is the achievement of national oil production target for the year of 2015 which should reach an average of 1 million barrels. In my technical calculation, the achievement of this target is possible if we successfully manage to increase the Enhanced Oil Recovery activities and to strictly guard the projects to be accomplished in timely manner.

Meanwhile, for the long term target, SKK Migas is demanded to increase the oil reserves, especially for the last few years where the oil reserves started decreasing. This effort will be performed by SKK Migas to support the energy supply in the future.

“To achieve those targets, you are demanded to make a technical and management breakthroughs. You have to audaciously develop the rule of thumb so that the approval process from the Contractors of Cooperation Contract (KKS Contractor) may be accelerated but effective, and accordingly you will have more time to tidy up and improve your supervision, so you are not trapped with your workload in your hand”, said Rudi.

In accordance with the Presidential Regulation No. 9 of 2013 on the Implementation of Upstream Oil and Gas Business Activities Management, the leaders of this institution consist of the Chairman, Vice Chairman, Corporate Secretary, Internal Supervisor and Deputies. The function of the Corporate Secretary is similar to the Secretary-General of the Ministry, taking care of the management services of the institution. Whereas the function of Internal Unit Supervisor is similar to the function of the Inspector General in the Ministry, whose duty is to supervise and evaluate the institution performance so that all processes and decisions to be determined are in accordance with Good Corporate Governance standards.

The function of marketing section will be enhanced to the Deputy Chairman for Commercial Affairs which, besides handling several matters related to oil and gas sales, this section will also have a division that evaluates the economics of the produced field. Therefore, by the time a contract for a working area has expired, SKK Migas will have a complete evaluation with regard to the working area performance and will be able to provide a comprehensive feedback to the Government regarding the continuity of the operation.

“Since I was appointed, the process of establishing this new organization has been started, in coordination with Ministry of Energy and Mineral Resources. Finally, yesterday, Minister of Energy and Mineral Resources has determined this new organization after obtaining approval from the Supervisory Commission,” said Rudi.

Overall, the SKK Migas organization has been downsizing, particularly at the level of Department Head and Sub-Department Head to fulfill the demand of the public who expect efficiency in this new organization. One of the downsizing examples is the merger of Maintenance Division and Project Management Division in the Operation Control Section. These two organizations are dealing with projects, so as far as efficiency is concerned, both organizations are merged into one command, under the Deputy Chairman for Operation Control. “I also expect that the business process within this organization will be running smoothly. That is why the function of the Accounting Division that previously handled financial issues of KKS Contractors as well as internal financial matters, will return to its initial function that is to handle KKS Contractor financial issues only. Meanwhile, the internal financial matters will be managed by the Internal Division.