Indonesia’s Recent Move to Join BRICS: What the Move Means for the Oil and Gas Industry?

The Society of Petroleum Engineers (SPE) ITS SC held a guest lecture program called SPEak Up! Guest Lecture in collaboration with SPE UTM SC from Malaysia and SPE PSU SC from the Philippines. The program aimed to increase the understanding of the members of the three SPE’s regarding the perspective of the oil and gas industry in the energy transition era.  SPEak Up! Guest Lecture is an annual event that developed by Academia and Competency Development Department SPE  ITS SC. This year, SPEak Up! brought the theme regarding the perspective of the oil and gas industry in the energy transition era. One interesting topic was "CCUS as a Remarkable Solution to Support Emission Reduction" presented by Mutia Khairunnisa Mardhatillah.Mutia Khairunnisa Mardhatillah is a graduate student from the PETRONAS University of Technology majoring in Petroleum Engineering at the master's degree. Currently she is a Researcher Assistant in the field of carbon capture and storage (CCS) at PETRONAS University of Technology. Also, currently she is working on his dissertation focused on the CO2-Brine-Rock Interactions during sequestration in Saline Aquifer. The observations are on the near-wellbore vicinity and the consequences from the interactions are analyzed.In her presentation, Mutia said that currently, our world is experiencing a significant increase in the earth's temperature from year to year which is experienced by the large number of greenhouse gas emissions, especially CO2 that rises into the atmosphere. That way, there needs to be a step to prevent it.there are many ways that can be done to reduce greenhouse gas emissions, such as the use of renewable energy, methane reduction, alternative fuels, etc. However, in this case there is one way that is often discussed at this time, that is CCUS.CCUS stands for Carbon Capture, Utilization, and Storage. It refers to a set of technologies and processes aimed at reducing carbon dioxide emissions from industrial processes and power generation. Carbon capture involves capturing carbon dioxide emissions from sources such as power plants, factories, and other industrial processes. Utilization involves finding ways to use the captured carbon dioxide, for example, in the production of chemicals, fuels, or building materials. Storage involves storing the captured carbon dioxide in underground geological formations, such as depleted oil and gas reservoirs or saline aquifers, so that it does not enter the atmosphere. CCUS is seen as a promising approach to reducing greenhouse gas emissions and mitigating climate change, as it allows for continued use of fossil fuels while reducing their environmental impact.“CCUS consists of 4 stages, namely Carbon Capture, Transport, Utilization, and Storage. In the carbon capture stage, CO2 released into the atmosphere will be captured from fuel combustion or industrial processes. Furthermore, at the transport stage, CO2 will be transported via a ship or pipeline. After CO2 is transported, there is a utilization stage where it can either be used as a resource to create valuable products or services, but it doesn't stop at that stage, CO2 can also be injected into underground geological formations for the storage stage.” Mutia said. However, there are still several obstacles in its application, such as high cost, regulatory framework, and public acceptance. For this reason, Mutia hopes that companies that will later apply this technology and the government can work together with the surrounding community for the implementation of this CCUS technology.

Surabaya, November 14th, 2025 —The Society of Petroleum Engineers (SPE) ITS Student Chapter successfully hosted the Upstream Series 2025, an annual flagship event that brings together academic and industry experts to discuss advancements in upstream oil and gas operations. This year's edition featured a strategic collaboration with Mubadala Energy, further strengthening the event’s technical depth, particularly in drilling fluids and well construction. The keynote speaker, Mr. Habib Baehaki, with 30 years of experience in the oil and gas sector, Mr. Habib Baehaki serves as a Lead Drilling Engineer at Mubadala Energy. He brings extensive expertise in drilling engineering and has been involved in numerous projects across diverse locations. Recognized for his technical skills and leadership, he plays a key role in driving the success of the company’s drilling operations. Mr. Habib delivered an extensive session covering a wide spectrum of drilling engineering concepts and real-world industry challenges. He began by explaining the systems and equipment used in drilling, emphasizing how each component plays a critical role in maintaining wellbore stability and operational safety. He also outlined the various types of wells and highlighted how engineers determine optimal configurations through careful well planning, well profiles, and field-specific considerations. A key part of the session focused on how engineers evaluate subsurface formations. Mr. Habib discussed the interpretation of gamma ray logs, density data, and assessments of porosity and permeability, all of which are crucial in evaluating reservoir quality. He emphasized that modern reservoirs often contain increasing levels of impurities, which significantly raise development and processing costs. Cost considerations formed another major theme of his talk. Mr. Habib highlighted that cost estimation remains one of the most essential skills for drilling and project engineers, as accurate budgeting determines the overall feasibility and success of a project from planning to execution. The collaboration with Mubadala Energy enriched the technical discussion by providing real-world perspectives on drilling fluid management and the practical challenges encountered in the field. Participants engaged actively throughout the session, demonstrating strong enthusiasm for bridging academic understanding with industry experience. With an experienced guest speaker and the ability to address the curiosity of SPE members and participants regarding the upstream oil and gas industry, this event—organized by the Division of Science Course under the Department of Academia has set a new standard for SPE ITS guest lecture sessions. SPE ITS expressed confidence that events like the Upstream Series 2025 will continue to inspire young engineers and strengthen Indonesia’s contribution to global energy development.  Writer: Christya Amanda

On Saturday, March 2nd, 2024, the Soft Skills Division of the SPE ITS SC held SPEctra (SPE Career on Track). This intensive bootcamp is designed to meet the increasing demand for equipping future leaders with essential skills necessary for the modern professional world. SPEctra consists of comprehensive training targeting key aspects of leadership and professional proficiency.SPEctra emerged as a dynamic response to the need for leadership development in today's complex work environments. The program was established to empower participants by honing their abilities in team motivation, conflict management, and strategic decision-making. Grounded in the belief that exceptional leadership is a cultivated skill rather than an innate trait, SPEctra aims to prepare individuals to navigate challenges, foster collaboration, and make informed decisions.Mr. Windo Julioardi, Manufacturing Manager at Danone Aqua, delivered a keynote presentation on "Developing Soft Skills for Decent Work." His insights underscored the importance of soft skills in achieving professional success and contributing to sustainable development.Participants in SPEctra engaged with a case study centered around the theme "Innovating and Impacting Through UN SDGs." This theme encouraged participants to devise solutions that aligned with the United Nations Sustainable Development Goals (SDGs) which promotes innovation and impactful outcomes. Throughout the bootcamp, participants worked on progressing their case solutions, guided by structured sessions and mentors. Participants partook in an mentoring session, where they developed decision-making solutions through creative activities such as cardboard prototyping. This hands-on approach facilitated a deeper understanding of the case study and fostered innovative thinking. The mentoring session resulted in discussions and preparations for the presentation phase. After submitting their case solutions, participants presented their work. The top three submissions were selected for final presentations that were held offline. The presentation session also featured expert speakers, Lala Cig, who addressed "Strategies for Effective Problem Solving" and "Aligning Professional Growth with UN SDGs." This session provided participants with practical strategies and insights for tackling complex problems and aligning their career growth with global sustainability goals.The event concluded with a closing ceremony and an awarding session to appreciate the outstanding efforts of the participants.Written by: Arya Nugraha Aulia Rahman Yusup

Image source : Suara.com/Ema RohimahThe recent hike in the price of fuel oil has left the public infuriated. On the same day when President Joko Widodo and the ministers held a press conference last September, the official fuel price increased by 30 percent. The hike—the first in eight years—raised the Pertalite's price from Rp. 7.650 to Rp. 10.000 per liter, diesel price from Rp. 5.150 to Rp. 6.800, and Pertamax from Rp 12.500 to Rp 14.500. This then begs a question, why did the price of gasoline rise?One thing we should know, anything that impacts crude oil will affect gasoline. The price of crude oil, however, always fluctuates.  One of the factors that can influence the recent price of crude oil is the supply and demand of crude oil.The principle of supply and demand is the same as what we’ve learned at school, when demand increases, oil prices rise (or supply decreases), and vice versa. For example, Brent crude oil, a type of crude oil, plummeted to $22.58 a barrel in March 2020, reaching its lowest level since 2002 due to the COVID-19 pandemic. That can happen because a lot of businesses closed, which caused the low demand for oil.Geopolitical events in any of the major oil-producing countries might also result in oil trade wars and affect oil prices. Oil prices can skyrocket as a result of conflict or crisis. This is because traders are concerned that it will limit the oil supply, causing prices to rise. The recent Russia-Ukraine conflict made oil prices top $100 per barrel for the first time since 2014 in February. What a number.In addition to crude oil, outside factors may also contribute to raising the price. Retail prices for fuel oil can be influenced by production costs and government regulations, too. The components of production costs that must be considered are the cost of crude oil, the cost of refining, the cost of distribution and marketing, and the cost of taxes. According to the Finance Ministry, Sri Mulyani, the economic price (crude oil price + production cost combined) for Pertalite is supposed to be Rp. 14.450 per liter while diesel is Rp. 13.950 per liter. Of course, the retail gasoline prices that we pay in SPBU are already subsidized by the government.Difference between subsidized prices at the pump and economic prices in Indonesia. Source: Investor Daily Source: U.S. Energy Information Administration, Gasoline and Diesel Fuel UpdateGovernment policy plays a vital role in ensuring that the price is reasonable for both the people and the country. According to President Joko Widodo, the energy subsidy had tripled this year from its original budget, triggered by rising global prices of oil and gas. So, rather than increasing the number of subsidies, the decision to raise fuel prices appears plausible for the time being. But why isn't the price of gasoline rising in neighboring countries like Malaysia?Well, despite having similarities in many aspects, the production and distribution of energy are structurally quite different due to factors like market size and domestic supply. Indonesia has not recently made significant profits because the domestic market has become the primary market, which is more political and economical to people than profit-driven. This presents a challenge because consumers are used to the days of cheap, plentiful oil, while Indonesia is producing less than it once did. Oil production and consumption in Indonesia Source: BP Statistical Review of World Energy, various yearsPertamina’s limited refinery capacity means that it has become ever more reliant on imports and thus more sensitive to swings in global energy prices. Contrarily, Malaysia has consistently generated profits and has managed to hold gasoline prices steady despite volatility in the world energy markets. It is difficult to compare the two countries since Malaysia has a much smaller domestic market than Indonesia.The rising of fuel prices is a really sensitive issue, any changes will have a significant impact on households and small businesses. Indonesia probably needs to allocate more spending toward human resources investment, like creating more jobs and improving education, in order to be resilient to the swings of global energy. It must do more than just raise the prices to benefit from its demographic transition.References: https://thediplomat.com/2022/09/why-the-price-of-petrol-increased-in-indonesia-but-not-in-malaysia/https://www.thebalancemoney.com/how-are-oil-prices-determined-3305650#:~:text=What%20affects%20the%20price%20of,supply%2C%20and%20expected%20global%20demand.https://www.investopedia.com/articles/investing/072515/top-factors-reports-affect-price-oil.asphttps://www.investopedia.com/articles/economics/08/determining-oil-prices.asp