Oil and gas industry and technology development in Indonesia below par

Indonesia's capability to encourage natural oil and gas production increase and efficiency has been very weak, compared with the capabilities of several countries in the Asia Pacific region, because Indonesia has not mastered many oil and gas technologies, according to state minister of research and technology A.S. Hikam.

Therefore, Hikam said in his written address read at the conference of Association For Engineering Education in South East Asia and Pacific (AEESEAP) at Patra Jasa Hotel, Tuban, Kuta, Bali, the international capabilities from foreign experts and companies are still needed to transfer technology as partners in business development.

Citing an example, Hikam said the development of LNG train H refinery plant in Bontang, East Kalimantan, still uses many imported equipment and machinery. While the similar refinery in Bintulu, Malaysia, uses more locally-made products and engineering in its development. Malaysia is currently more advanced in gas technology although the country enters the industry seriously in 1982, almost two decades after Indonesia built its fertilizer plant in Palembang.

Indonesia's manufacturing value added capabilities ranked last among Southeast Asian countries during the period of 1970 through 1990.

''Therefore, Indonesia must strengthen its capability in the research and development as well as engineering and industrial technology development," Hikam said in his written speech at the conference ready by his deputy, Aswi Sasongko.

The conference, attended by representatives from 13 countries in the region, will end on August 25. (*)