A Strategy of Local Content Enhancement in Petroleum and Natural Gas Industry

Abstract

Oil and gas are a strategic natural resources, not only as a source of state revenue, supplier of fuel needs of domestic and industrial raw materials, but it is also expected to be able to create a chain effect for enhancing national capacity. Therefore we need a strategy to exploit the opportunities created by the oil and gas industry to support this effort. Analytical Hierarchy Process is used to get the weights of criteria and sub-criteria and then rank the performance improvement strategy against Local Content Achievement by using Technique for Order of Preference by Similarity to Ideal Solution. Structured interviews with experts in the field of Local Content in the upstream oil and gas business activities has been conducted. The result is twelve criteria relating to the success of the performance improvement of Local Content achevement in the upstream oil and gas business activities. There are sixteen strategies that affect and after the ranking of the most influential strategy is the role of government in setting the focus of scientific fields of applied sciences to the population and to develop human resources in accordance with the current needs of the global market in the medium and high skill level.