Revenue target from oil and gas raised
Revenue target from oil and gas raised
The Jakarta Post, Jakarta
The government and the House of Representatives' budget
committee agreed on Monday to raise the revenue target from oil
and gas and other natural resources in the 2003 state budget
draft from Rp 62.1 trillion (around US$6.8 billion) to Rp 70.97
trillion.
Chairman of the committee Abdullah Zainie said on Monday that
the positive revision reflected the higher world oil prices
expected for next year.
"The higher target is based on an estimated increase in income
tax for the government from oil and gas, which was made possible
after we made revision on the oil price," Zainie was quoted by
Antara as saying.
The government and the House last week revised almost all of
the assumptions for next year's draft, first presented to the
legislators in August, to take into account the economic impacts
arising from the Bali bombings and the latest developments
globally.
Among other things, the government increased the oil target
price from the initial price of $20.5 to $22 per barrel, while
the oil production target remained at 1.27 million barrels per
day.
Under the August draft budget, the government targeted Rp
12.55 trillion in income tax revenue from oil and gas and a total
of Rp 49.59 trillion in non-tax revenue from oil and gas and
other natural resource-based industries, including mining,
forestry and fishery. From the oil and gas sector alone, non-tax
revenue was set at Rp 33.1 trillion.
Under the revised budget, income tax revenue from oil and gas
is set at Rp 14.77 trillion, while non-tax revenue from oil and
gas and other natural resources is set at Rp 56.19 trillion.
In the meeting, director of state-owned oil and gas company
Pertamina Baihaki Hakim said that he projected the company's
dividend for the government for next year to be higher as well
because of the revised oil price.
"After some adjustments, we have calculated that Pertamina can
generate some Rp 2.338 trillion in revenue for the government in
2003, instead of the previous projection of Rp 1.5 trillion,"
Baihaki told the meeting.