Indonesia's Oil Production Falls in 2022, Lowest in a Decade

The Ministry of Energy and Mineral Resources (ESDM) has recorded a decade-long trend in Indonesia's crude oil production volume. Production in 2022 was the lowest throughout this period.

Based on the Ministry of ESDM's published book, *Energy & Economic Statistics of Indonesia 2022*, the production volume in 2012 reached 314 million barrels (bbl). Volume decreased for the following three years.

Then, in 2016, it reached 303.33 million bbl. This was an increase from 286.81 million bbl in 2015.

Unfortunately, a consistent decline occurred until 2022, reaching 223.53 million bbl. This is the lowest production volume recorded by the government in a decade.

Crude Oil Prices Rise

The Indonesian Crude Price (ICP) was set at US$75.06 per barrel for July 2023. This price is stipulated in the Decree of the Minister of ESDM Number 272.K/MG.03/DJM/2023 concerning the Crude Oil Price for July 2023.

Citing an official statement from the Ministry of ESDM, this figure represents an increase of US$5.70 per barrel from US$69.36 per barrel in June 2023. Agung Pribadi, Head of the Bureau of Communication, Public Information Services, and Cooperation (KLIK) at the Ministry of ESDM, explained that the average price of crude oil worldwide also increased.

The increase in crude oil prices in the international market is influenced, among other things, by indications of tightening global oil supplies, along with production cuts by OPEC+, particularly Saudi Arabia and Russia.

"And the expectation that the tightening policies implemented by the US and European Central Banks will end, as well as additional stimulus to the Chinese economy," said Agung in Jakarta on Sunday (August 13, 2023).

Meanwhile, the World Bank explained that the average Brent crude oil price in August 2023 reached US$86.16 per barrel. The price increased by 7.6% compared to July 2023 (month-on-month/mom), and increased by 3.7% compared to the beginning of the year (year-to-date/ytd).

In line with the Indonesian government's statement, the U.S. Energy Information Administration (EIA) also mentions that this price increase was influenced by Saudi Arabia's move to cut its oil supply.

"We expect these factors to continue to reduce global oil inventories and put upward pressure on oil prices in the coming months," it continued.

(See also: [Arab Kurangi Pasokan, Harga Minyak Dunia Naik Lagi pada Kuartal III 2023](https://databoks.katadata.co.id/datapublish/2023/09/06/arab-kurangi-pasokan-harga-minyak-dunia-naik-lagi-pada-kuartal-iii-2023))