Government expects to raise Rp 70.97 trillion from oil and gas

The government and the budgetary commission of the House of Representatives (DPR) have agreed the projection to raise about Rp 70.97 trillion (1$=Rp9,200) from oil and gas in the proposed 2003 state budget, or a slight increase from the projected Rp 62.1 trillion in the 2002 state budget, Kompas reported on Tuesday.

The projected revenues from oil and gas consist of Rp 14.77 trillion from income taxes (up from Rp 12.55 in the current budget), and Rp 56.19 trillion from non-income tax mostly comprising of the government?s oil and gas production share (an increase from Rp 49.56 trillion from the current budget).

The assumption for the projected revenues from oil and gas was based on the data on oil and gas production provided by BP-Migas. "The scenario of the oil and gas revenues in the state budget is based on production level of all production sharing contractors," Director General of Financial Institutions Darmin Nasution said after the hearing with the House?s budgetary commission.

According to Pertamina?s president Baihaki Hakim, the revenue assumption is based on oil production of 1.27 million barrels per day, an average oil price of US$22 per barrel and Rupiah/U.S. dollar exchange rate of Rp 9,000. (*)