TEMPO.CO, Jakarta - Rionald Silaban, the Finance Minister's expert staff of the macroeconomic and international finance, revealed that the oil and gas sector has been no longer the major contributor to the non-tax state revenue (PNBP) over the last few years.
According to Rionald, the oil and gas sector contributed Rp 198 trillion (US$14.8 billion) to the non-tax state revenue that amounted to Rp 352 trillion (US$26.4 billion) back in 2012.
"The oil and gas sector contributed about 59 percent of the total non-tax state revenue," Rionald said in a discussion held by Tempo in Jakarta on Tuesday, January 31, 2017.
Rionald revealed that the contribution of oil and gas sector was always above 50 percent until 2014. In 2015, the amount of the contribution dropped to Rp 78 trillion (US$5.8 billion) or only 30 percent of the total non-tax state revenue.
Rionald explained that the decreasing contribution of the oil and gas sector to the non-tax state revenue was caused by the declining oil and gas exploration activity.
"The declining exploration activity has caused the [oil and gas] production to depend on old oil wells. As a result, production was not optimized and operation cost swelled," Rionald added.
Earlier, the Energy and Mineral Resources Ministry announced that throughout 2016, the average oil production in stood at 831,000 barrels per day (bpd), and the gas production stood at 1,418,000 barrels of oil equivalent per day (boepd). In the Revised 2016 State Budget, the oil and gas lifting targets were set at 820,000 bpd and 1,150,000 boepd.
"Credit goes to all people for their hard work," Energy and Mineral Resources Minister Ignasius Jonan said in a press release on Monday, January 30, 2017.
According to Jonan, the realization of oil and gas lifting that exceeded the target occurred amidst the plummeting oil prices. The Indonesian Crude Price (ICP) by the end of 2016 was at US$39.5 per barrel with an assumption of US$40 per barrel set in the Revised 2016 State Budget.
The 2016 oil and gas lifting realization was supported by eight out of ten oil and gas projects completed this year. The projects, among others, are the Cepu Block production facility that contributed 185,000 barrels of oil per day, the Petronas-operated Bukit Tua oil field that contributed 20,000 barrels per day, and Pertamina EP's Pondok Makmur and Donggi oil fields. The cost recovery to be paid by the government this year reached US$11.4 billion, which was higher than the threshold set in the Revised 2016 State Budget at US$8.4 billion.
VINDRY FLORENTIN
