Indonesian Migrant Workers Experience a Decreasing Trend

Indonesia's oil and gas (migas) lifting experienced a downward trend from 2010 to 2018. The State Budget (APBN) shows that the target for domestic migas lifting decreased year by year.

Indonesia's gas lifting in 2010 still reached 1.39 million barrels of oil equivalent per day (MBOEPD), but in the 2017 APBN it was only targeted at 1.15 million barrels per day, meaning a decrease of more than 17 percent in 7 years (not 17 years as stated in the original text). Similarly, oil lifting in 2010 reached 953 thousand barrels per day, but in the 2017 APBN it was set at only 815 barrels per day, or a decrease of more than 14 percent.

In the macroeconomic assumptions of the 2018 RAPBN (State Budget Draft), oil lifting was targeted in the range of 771-815 barrels per day, while gas lifting was targeted at 1.19-1.24 million MBOEPD. The persistently low oil price has made oil and gas drilling companies very cautious about reinvesting in new migas exploration. They currently prefer maintaining existing wells rather than undertaking new drilling. This is further compounded by the change in contract and profit-sharing schemes from *cost recovery* to *gross split*.