Abstract

During 1998, the international oil industry was shocked by some significant events. The mega mergers among big oil players and the drop in oil price at the end of 1998 more or less changed the priority and strategy of the oil industry. These events will lead to drastic steps to improve efficiency in operations and to enhance competitive capacity.

As provided by Law, the Government of the Republic of Indonesia, as the authority over E&P activities, is expected by various parties to be more efficient and transparent in its policy implementation. This efficiency program is also in line with the needs of Indonesia which is currently facing an economic crisis. Efficiency in all parties is expected to enhance stability and state revenues.

In line with the government role and the efficiency objective, one of the ways to enhance services, control, and operational management within the Indonesian Petroleum community is to establish an effective communication media among all parties e.g., Directorate General of Oil and Gas, BPPKAPERTAMINA, Oil Companies, Service Companies and other related parties. Figures 1 and 2 show the existing and expected business processes among the parties concerned.

Migas Online (Indonesia's Oil & Gas Online) is a communication media in the form of an Internet protocol, network-based service which is designed and developed to meet the needs of the Indonesian Petroleum community.

Migas Online constitutes the response to various demands. It is in line with the reform era and is valued as a breakthrough in Indonesia. The ideas that underlie Migas Online are efficiency, transparency, and speed and accuracy in providing services and making decisions. The applications currently being developed in Migas Online stem from early applications to optimize procurement management (Bidder list and Tender process online) and Petroleum logistics management (Surplus material and Masterlist online).

Potential savings from these shared applications result from avoiding redundancy, reducing processing time, cutting bureaucracy, reducing quoted prices and involving additional competitive bidders.