2020 Target Lifting Migas Lower Than 2019

The 2020 national oil and gas (migas) lifting target was lower than the 2019 target. The 2020 State Budget (RAPBN) targeted oil lifting at 734,000 barrels per day, 5.29% lower than the previous year's (APBN 2019) target of 775,000 barrels per day. Similarly, gas lifting was set at 1.19 million barrels of oil equivalent per day, 4.72% lower than the APBN 2019 target.

Oil and gas is a crucial sector for the national finances. This is reflected in the fact that migas lifting targets are always included as a macroeconomic indicator in the State Budget. Every US$1 increase or decrease in the price of oil per barrel impacts government revenue and expenditure, particularly in determining the amount of energy subsidies.

High domestic oil consumption and dwindling production have made Indonesia a net importer of crude oil, especially refined oil or fuel oil. As shown in the graph, Indonesian oil lifting has shown a downward trend year on year. Meanwhile, national natural gas production remains substantial and sufficient to meet domestic needs, aided by the discovery of new gas fields.

(Read Databoks: Lifting Migas Indonesia Mengalami Tren Penurunan)