Govt receives Rp 170.59 trillion from oil and gas sector in 2005

The government received an income, excluding taxes, of Rp 170.59 trillion from the oil and gas sector in 2005. This figure is far below than the second revised State Budget target of Rp 185.48 trillion, the Koran Tempo newspaper reported in its Wednesday edition.

Minister of Energy and Mineral Resources Purnomo Yusgiantoro said the target was not reached because of the change in the assumption of fuel price in the revised State Budget II.

?The revenue is calculated based on the assumption price of the fuel in the State Budget. This price was changed three times,? Purnomo said in Jakarta on Tuesday.

Purnomo explained that the first revision of the State Budget was set at the assumption price at US$45 per barrel with an exchange rate of Rp 9,300 per dollar. This was much higher than the initial assumption price, which was set in October 2004, of $24 per barrel and a target of Rp 69.53 trillion. Based on the first revision, the realization of income from oiland gas sector, Rp 155.14 trillion, is still higher.

?Because the State Budget II revision used an higher assumption price, the realization has become deficit,? Purnomo said. Under the State Budget II revision, the assumption price was set at $54 per barrel with an exchange rate of Rp 9,800 per U.S. dollar. The production target was 1,075 million barrels of oil per day. (*)