Govt lowers slightly on 2012 oil & gas revenue

Kamis, 22 Maret 2012 | 10:39

The House Budget Board agreed to deal with the government on new target oil and gas revenue in 2012-revised state budget amounting to IDR278.02 trillion, with cost recovery of US$15.1 billion.The new target oil and gas revenue is likely to stagnate or fell slightly if compared with last year realization IDR278.27 trillion. Oil and gas revenue were up IDR12.08 trillion from the 2012 revised state budget proposed by IDR265.94 trillion.

Acting Head of Fiscal Policy Office Ministry of Finance Bambang P.S. Brodjonegoro also revealed income taxes for oil and gas set to IDR67.91 trillion, non-tax revenues (NTR) of natural resources and oil IDR150.84 trillion, gas NTR IDR47.46 trillion, and others NTR that are part of the domestic market obligation (DMO) of IDR11.79 trillion.

"In the 2012 revised budget, cost recovery is capped at US$15.1 billion," Bambang said.

Meanwhile, the parliament noted on the government cost recovery assumption to examine efficiency of production.

The government also has been asked to seek renegotiation of gas prices and maintain production through new oil and gas exploration projects.

"Cost recovery is related to new projects, exploration, and realization of investments. So it will affect in the long term," said Director General of Oil and Gas at Ministry of Energy of Mineral Resources Evita Legowo.

During the meeting, the parliament notes that cost recovery ratio of revenue can be maintained at levels of 25% and expected to continue to be lowered. (aph)

By Ana Noviani