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Jakarta Post

Indonesia sees lower revenue from oil, gas

  • Stefanno Reinard Sulaiman

    The Jakarta Post

Jakarta   /   Mon, March 25, 2019   /   02:50 pm
Indonesia sees lower revenue from oil, gas Energy and Mineral Resources Minister Ignasius Jonan. (Antara/Akbar Nugroho Gumay)

 The Energy and Mineral Resources Ministry has said the country would not meet the nontax target revenue in the oil and gas sector, which was set at Rp 168.62 trillion (US$11.8 billion), this year because of low global oil prices in the last two months.

The price stands below US$70 per barrel of oil (Brent crude). 

Energy and Mineral Resources Minister Ignasius Jonan said the target revenue was set with the assumption that the Indonesian Crude Price would be US$70 per barrel. Government data in the last two months shows that the price was around $68 per barrel.

"We've not reached the target in the past two months. This is a challenge for us in the remaining 10 months," he said at the House of Representative.

Jonan said the Cabinet had yet to hold a meeting to discuss a revision to the state budget.

"We'll see in the coming months, maybe in May or June Finance Minister [Sri Mulyani] will propose a revision of [macroeconomic] assumptions," he said.

As of Monday, the global Brent crude price stood at $66 per barrel of oil because of fears of a global economic slowdown, which have had a stronger impact on prices than the plan to cut oil production by the Organization of Petroleum Exporting Countries. (bbn)