Sri Mulyani Calls Oil Production Decline a 'Challenging Situation'

Translator

Ririe Ranggasari

Editor

Laila Afifa

30 November 2021 16:47 WIB

Finance Minister Sri Mulyani. Youtube

TEMPO.CO, Jakarta - Finance Minister Sri Mulyani said Indonesia is facing the fact that oil and gas production continues to decrease every year. The production decline is affecting the macroeconomic sector because it will affect the trade balance.

"So this oil and gas is definitely a challenging situation," Sri Mulyani when speaking at the 2nd International Upstream Oil and Gas 2021 event streamed on the SKK Migas' YouTube channel, Tuesday, November 30.

The decline in oil and gas production, especially oil, has narrowed the gap between energy demand and supply. Even though Covid-19 has reduced demand for oil and gas use, Sri Mulyani said Indonesia still has a huge demand for energy because of its large population of more than 260 million people.

If domestic production cannot meet the demand for energy needs, the possibility for imports will be even greater as Indonesia is a "developing country with a large population and economic size, and so the demand for fuel energy will continue to rise," she said.

Referring to data from the Energy Ministry's Oil and Gas Directorate General, Sri said that 2020's oil lifting volume was 707 MBOPD, exceeding the target of 705 MBOPD, which was lowered from the initial goal of 755 MBOPD. Meanwhile, natural gas lifting volume was 975 MBOEPD, below the targeted 992 MBOEPD.

Sri Mulyani continued, the declining oil and gas production is a shared concern among various countries amid the global plan to reduce carbon emissions. This situation is seen as the right momentum to transition to renewable energy sources that are environmentally friendly and in line with the COP21 and COP26 commitments.

"The commitment to preventing climate change by curbing the planet's temperature increase also has a direct impact on the oil and gas industry. As the world's largest CO2 importer, Indonesia can change its path to zero emission," Sri Mulyani said.

Read: SKK Migas Goes 'Aggressive' to Meet 2030 Oil and Gas Production Goal

FRANCISCA CHRISTY ROSANA



Tax Revenues Reach Rp1,171tn; Sri Mulyani: Exceeds Pre Pandemic Level

2 hari lalu

Tax Revenues Reach Rp1,171tn; Sri Mulyani: Exceeds Pre Pandemic Level

Finance Minister Sri Mulyani Indrawati revealed that the country's tax revenues until the end of August 2022 had exceeded the pre-pandemic level.


Sri Mulyani Reports State Budget Rp107.4tn Surplus amid Turmoil

2 hari lalu

Sri Mulyani Reports State Budget Rp107.4tn Surplus amid Turmoil

Finance Minister Sri Mulyani stated that the country's state budget is resistant to shocks as it records a surplus of Rp107.4 trillion.


Jokowi Issues Instruction to Use Electric Cars as Govt Officials' Vehicles

13 hari lalu

Jokowi Issues Instruction to Use Electric Cars as Govt Officials' Vehicles

The instruction is a manifestation of Jokowi's commitment to transition from fossil-based energy to green, renewable sources.


Effects of Climate Crisis Worse than Pandemic, Says Sri Mulyani

14 hari lalu

Effects of Climate Crisis Worse than Pandemic, Says Sri Mulyani

The climate crisis the world population faces will have a lasting effect far worse than the Covid-19 pandemic, Sri Mulyani fears.


Use of Geothermal Energy can Boost People's Economy: Energy Ministry

14 hari lalu

Use of Geothermal Energy can Boost People's Economy: Energy Ministry

Geothermal energy utilization would not only provide low-emission electricity, but also generate additional revenues, improving people's economy


Sri Mulyani Vows Regions That Can Resist Inflation Will Get Rp10 Bln

15 hari lalu

Sri Mulyani Vows Regions That Can Resist Inflation Will Get Rp10 Bln

Finance Minister Sri Mulyani states that the government would grant incentives of Rp10 billion for regions that are able to contain the inflation rate


Oil Prices Lowers, Sri Mulyani: No Certainty When It Will Go Up or Lower

16 hari lalu

Oil Prices Lowers, Sri Mulyani: No Certainty When It Will Go Up or Lower

Finance Minister Sri Mulyani Indrawati mentioned that global oil prices remain fluctuating despite the recent decrease.


Sri Mulyani: Fuel Cash Aid Can Suppress Poverty Rate by 1.07%

23 hari lalu

Sri Mulyani: Fuel Cash Aid Can Suppress Poverty Rate by 1.07%

Finance Minister Sri Mulyani calculated that cash assistance disbursed to deal with the impact of fuel price hike can reduce the poverty rate.


Sri Mulyani: Indonesia's Economic Growth May Fall Under 5.3%

28 hari lalu

Sri Mulyani: Indonesia's Economic Growth May Fall Under 5.3%

Indonesia's Finance Minister Sri Mulyani Indrawati says there is potential for a decline in the projected economic growth in 2023.


August Foreign Capital Outflow Reach Rp126.85 Trillion, Says Sri Mulyani

28 hari lalu

August Foreign Capital Outflow Reach Rp126.85 Trillion, Says Sri Mulyani

Finance Minister Sri Mulyani Indrawati on Wednesday said foreign capital outflows reached Rp 126.85 trillion as of August.