Monday, 3 Zulqaidah 1439 / 16 July 2018

Monday, 3 Zulqaidah 1439 / 16 July 2018

Oil and gas reserves in critical condition

Selasa 17 December 2013 17:51 WIB

Rep: Meiliani Fauziah/Muhammad Iqbal/Mutia Ramadhani/ Red: Julkifli Marbun




REPUBLIKA.CO.ID, JAKARTA - Oil and gas reserves in Indonesia continue to decrease from year to year. Government is asked to make a long term strategy to increase oil and gas production and develop renewable energy.

Deputy Director of Reforminer Institute, Komaidi Notonegoro explained that oil reserve was expected to run out within 12 years, while gas reserve will be depleted in 42 years ahead. Indonesia is number 28 as high oil reserve owner in the world.

"Government must be aware of this condition," Notonegoro said recently.

Oil and gas sector becomes major sector to finance state budget over the years. This sector contributes 25 percent to national revenue. In 2012, oil and gas sector contributed the largest deficit in trade balance up to 19.775 million USD. In the same period, export value of oil and gas sector reached 17.927 million USD, while import value reached 37.702 million USD.

Government now is only focusing Pertamina - state owned oil and Gas Company - to increase its production to add state revenue. Notonegoro said that government should have a long term strategy to ensure availability of oil and gas by providing incentives for Pertamina to build refinery. It must be formulated to reduce fuel consumption in the country.

Energy analysts, Darmawan Prasodjo said that energy requirements increased five times in last ten years. Indonesia today is faced the dependence of oil and gas, while renewable energy is not developed.

Prasodjo agreed that Pertamina has been forced to optimize state revenue through lifting. The fact, a lifting involves capital, technology and high risk. Lifting scheme made oil and gas industry is not growing in the country.

Head of Macroeconomic Policies Fiscal Policy Office (BKF) Luky Alfirman said that a fixed fuel subsidy was one option to control allocation of subsidies. In economy theory, Indonesia still needs fuel subsidy.

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