ESDM Minister: Oil Affects State Revenue

By : Hariyanto And Aldo Bella Putra | Friday, September 29 2017 - 19:00 IWST

INDUSTRY.co.id - Jakarta - The Minister of Energy and Mineral Resources (ESDM), Ignatius Jonan, said that the world oil price is one of the strongest factors causing the decline in state revenues.

"The decline of state revenue from the energy and mineral resources sector (ESDM) is a factor, one of which is the decline in global oil prices," said ESDM Minister Ignasius Jonan in Jakarta on Thursday (28/09/2017)

Based on data from the Ministry of Energy and Mineral Resources, in 2014 revenue from this sector from oil and gas amounted to Rp320, 25 trillion, then from Renewable Energy (EBT) of Rp0, 75 trillion and Mineral, coal Rp35, 40 trillion, totaling Rp356, 4 trillion.

Then in 2015 the total amount of state revenue amounted to Rp153, 03 trillion or decreased by Rp203, 37 trillion. Furthermore in 2016 the total is Rp111, 97 trillion.

However, by 2017, as of September 2017, revenues rose to Rp118.69 trillion, making sure it will increase by the end of 2017 compared to 2016 revenues.

The highest achievement in 2014 is due to the worlds crude oil price penetrated the level of 89.08 US dollars per barrel. While in 2017 many observers assess the average world crude oil price is in the range of 50 to 55 US dollars per barrel.

Another factor, in addition to the world's crude oil prices, which makes the downward trend in state revenues from the ESDM sector, is the government's efforts to seek royalty tariffs. This is to stimulate investment in the oil and gas business.

In addition to trying to boost oil and gas production and EBT, Jonan said the Ministry of Energy and Mineral Resources is focusing on the quality of oil and gas output, so it can be absorbed by the market well.

Jonan himself in 2017 gives the target oil production is 815,000 barrels per day, but in reality the average now per day is 800,000 barrels per day.

"If by the end of the year, I think the 'outlook' is still below 815,000 barrels per day, which is for oil," said the former Minister of Transportation.