Government Oil and Gas Revenue Reaches 66% in the First Half of 2017

Government revenue from the oil and gas sector up to the first half of 2017 has reached 65.7 percent of the target. Data from the Ministry of Energy and Mineral Resources recorded that state revenue (PPh + PNBP) in the oil and gas sector amounted to Rp 69.4 trillion out of a target of Rp 105.5 trillion by the end of this year.

The still low global oil price and minimal investment in the oil and gas sector have resulted in a lower 2017 state revenue target from oil and gas compared to the 2016 achievement of Rp 167.1 trillion. Meanwhile, oil and gas investment up to the first half of this year has only reached 21.6 percent or US$ 4.8 billion out of a target of US$ 22.2 billion.

To increase state revenue, the government has established the Kinantu Field/Pasir WK *Plan of Development*. In addition, it has also extended/transferred the management of 9 WKs, namely Tuban WK, Ogan Komering WK, South East Sumatera WK, NSO WK, Tengah WK, East Kalimantan WK, Atta WK, Jambi Merang WK, and Sanga-Sanga WK. Furthermore, the government is also currently offering 10 conventional WKs and 5 non-conventional WKs.