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Ada Pertanyaan? Hubungi Kami Kartini L Makmur, Robert Sidauruk
The problem of subsidized fuels remains the biggest threat to the State Budget as the Special Works Unit for Upstream Oil and Gas Activities (SKK Migas) is failing to achieve the projected targets for lifting. As a consequence, Indonesia will need to increase its oil and gas imports.
Between December 2013 – March 2014, SKK Migas recorded that national oil lifting only reached 700 thousand barrels per day (tbpd), lower than the projected 900 tbpd. For gas lifting, SKK Migas recorded s 1,301 tbpd, just above the set target of 1,240 tbpd.
“The slow oil and gas lifting has caused a deficit in the State Budget, and it will push us to make more imports of oil and gas,” said Rofi Munawar, member of Commission VII at the House of Representative in Jakarta on Wednesday.
Mr. Munawar highlighted the circumstances of current gas exports by Indonesia. According to SKK Migas, Indonesia only holds around 1.7 percent of the world’s natural gas reserves, yet still exports its natural gas to several countries including Singapore.
“Our working areas on natural gas are set for long term export agreements. Further, several strategic oil blocks are not owned by our national companies,” explained Mr. Munawar.
On a separate occasion, Enny Sri Hartati, Director of the Institute for Development of Economics and Finance (INDEF), said that the energy subsidies under the 2014 State Budget are irrational. According to her, the considerably large portion of the State Budget to be used for energy subsidies is unbalanced and will make the whole State Budget unhealthy.
“Currently, the energy subsidy takes 35% of the 2014 State Budget, which constitutes one-third of the total State expenditure proposed by the Government. This is irrational,” said Mrs. Hartati.
To overcome this, Mrs. Hartati suggests the Government reduce energy subsidies and save the State Budget by increasing fuel prices. Although this may not be a popular decision, Mrs. Enny contends the Government can reduce the impact on the public by not imposing it any time near Ramadhan or Idul Fitri.
“I would say the Government must reduce the subsidies. Consequently, prices on subsidized fuels must be increased,” concluded Mrs. Enny.
(hot/kc)
Kartini L Makmur, Robert Sidauruk
The problem of subsidized fuels remains the biggest threat to the State Budget as the Special Works Unit for Upstream Oil and Gas Activities (SKK Migas) is failing to achieve the projected targets for lifting. As a consequence, Indonesia will need to increase its oil and gas imports.
Between December 2013 – March 2014, SKK Migas recorded that national oil lifting only reached 700 thousand barrels per day (tbpd), lower than the projected 900 tbpd. For gas lifting, SKK Migas recorded s 1,301 tbpd, just above the set target of 1,240 tbpd.
“The slow oil and gas lifting has caused a deficit in the State Budget, and it will push us to make more imports of oil and gas,” said Rofi Munawar, member of Commission VII at the House of Representative in Jakarta on Wednesday.
Mr. Munawar highlighted the circumstances of current gas exports by Indonesia. According to SKK Migas, Indonesia only holds around 1.7 percent of the world’s natural gas reserves, yet still exports its natural gas to several countries including Singapore.
“Our working areas on natural gas are set for long term export agreements. Further, several strategic oil blocks are not owned by our national companies,” explained Mr. Munawar.
On a separate occasion, Enny Sri Hartati, Director of the Institute for Development of Economics and Finance (INDEF), said that the energy subsidies under the 2014 State Budget are irrational. According to her, the considerably large portion of the State Budget to be used for energy subsidies is unbalanced and will make the whole State Budget unhealthy.
“Currently, the energy subsidy takes 35% of the 2014 State Budget, which constitutes one-third of the total State expenditure proposed by the Government. This is irrational,” said Mrs. Hartati.
To overcome this, Mrs. Hartati suggests the Government reduce energy subsidies and save the State Budget by increasing fuel prices. Although this may not be a popular decision, Mrs. Enny contends the Government can reduce the impact on the public by not imposing it any time near Ramadhan or Idul Fitri.
“I would say the Government must reduce the subsidies. Consequently, prices on subsidized fuels must be increased,” concluded Mrs. Enny.
(hot/kc)