TheJakartaPost
Please Update your browser
Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.
Popular Reads
Top Results
No results found. Please check your search term and try again
Can't find what you're looking for?
View all search results
Popular Reads
Top Results
No results found. Please check your search term and try again
Can't find what you're looking for?
View all search resultsOil and gas revenue to miss target amid price slips
While revenue has weakened, investment in the upstream sector posted strong growth.
Change text size
Gift Premium Articles
to Anyone
Share the best of The Jakarta Post with friends, family, or colleagues. As a subscriber, you can gift 3 to 5 articles each month that anyone can read—no subscription needed!
An oil rig operates on April 2, 2023, in an oil and gas field managed by Pertamina Hulu Energi Offshore North West Java (PHE ONWJ) near Indramayu, West Java.
(Antara/Aditya Pradana Putra)
I
ndonesia's oil and gas upstream revenue is expected to fall short of its 2025 target, the country’s energy regulator has said, as lower-than-expected global crude prices weigh on earnings despite strong investment and production performance.
The benchmark Indonesian Crude Price (ICP), assumed at US$82 per barrel in the 2025 state budget, has averaged below $70 so far this year, dragging down state revenue even as output remains relatively stable.
According to the Upstream Oil and Gas Regulatory Special Task Force (SKK Migas), state revenue from the upstream sector in the first half stood at $5.88 billion, or 45.1 percent of the full-year target of $13.03 billion set in the 2025 state budget.
“It’s because the oil price set in the state budget is $82 per barrel, but in reality, the average has been below $69-$70 per barrel. So even if we hit our production target, the lower prices automatically bring the numbers down,” SKK Migas head Djoko Siswanto said on Monday, as quoted by Kumparan.
The regulator now projects total receipts by the end of the year to reach only around $10.83 billion, or roughly 85 percent of the state budget assumption.
Read also: Total, Chevron may revive business in Indonesia: SKK Migas
SKK Migas deputy for finance and commercialization Kurnia Chairi added that the weaker state revenue outlook was not only due to falling crude prices but was also partly influenced by oil and gas lifting performance.
