Oil, gas revenues on track to meet target
The Jakarta Post, Jakarta
The government reaped Rp 37.83 trillion (about US$4.2 billion) in oil and gas revenue in the first half of the year, more than half of the annual target of Rp 74.2 trillion.
Minister of Energy and Mineral Resources Purnomo Yusgiantoro said the government received Rp 26.78 trillion in revenue from oil and Rp 11.04 trillion from sales of liquefied natural gas (LNG) in the first half of the year.
"The figure represents 50.8 percent of the annual target for this year," he said in a paper presented during a hearing with the House of Representatives' Commission VIII for energy and mineral resources, environment, science and technology.
Given the half-year performance and the increasing trend in the oil price at present, analysts and industry players believe the government is on track to meet its annual targets.
Crude oil price have been on the increase over the past several weeks amid fears of the U.S. attacks on Iraq.
International benchmark Brent Crude for October delivery stood at $27.25 a barrel in the morning trading on Tuesday.
The government targeted Rp 74.2 trillion in oil and gas revenue this year based on the average price assumption of $22 per barrel and the rate assumption of Rp 9,000 against the U.S. dollar.
For next year, under the state budget proposal recently submitted to the House of Representatives, the government hopes to pull in Rp 46.6 trillion in oil and gas revenue, including Rp 33.1 trillion from oil and Rp 13.5 trillion from gas.
This is based on the price assumption of $20.5 per barrel and the exchange rate assumption of Rp 8,700 against the U.S. dollar.
Prior to the meeting, Purnomo told reporters that during the upcoming meeting of the Organization of Petroleum Exporting Countries (OPEC) in Osaka, Japan, Indonesia would be against any proposal, which would potentially lower oil prices.
"Our government's policy is to see the crude oil prices increase," Purnomo said.
But the minister declined to answer questions on Indonesia's stance on an output increase, which will dominate discussions at the Osaka meeting on Sept. 19.
So far, the group has shown few signs of consensus. Venezuela, Iran and Kuwait, together with Indonesia - which make up about 40 percent of OPEC's output - are likely to go against an increase in output. Saudi Arabia is likely to be for an increase.