Based on data received from the Ministry of Energy and Mineral Resources in Jakarta on Wednesday, the target value was derived from Income Tax (PPh), Non-Tax State Revenues (PNBP) of Oil and Gas (Oil and Gas) sub-sectors, Renewable Energy (EBT) sub-sector, as well as Minerals and Coal (Minerba) sector.
After recording weak performance in 2016 (Rp111.97 trillion), the contribution of the ESDM sector again recorded an increase of 6 percent until September 2017 and is projected to increase by 35 percent by the end of 2017.
The significant role of the Mineral Resources Energy (ESDM) sector in the national economy is reflected in its contribution to state revenues.
The oil and gas sub-sector still recorded the highest contribution to the state revenues compared to two other sub-sectors. In fact, compared to last year, the oil and gas contribution increased by 10.25 percent to Rp92.43 trillion until September 2017.
The rise in world oil prices, which previously weakened, also contributed to the rise in the contribution of ESDM to state revenue in 2017, which reached Rp118.69 trillion.
The gain was higher than the previous year at Rp111.97 trillion. The State Revenue from the three ESDM sub-sectors is projected to increase again until the end of 2017, each registering the following figure, namely oil and gas at Rp 118.44 trillion, EBT at Rp0.66 trillion, and Minerba (mineral and coal) at Rp32.40 trillion.
The last three years (2014-2016) are a test period for the global oil and gas industry. The decline in oil prices, which is affecting the decline of production, has been the cornerstone of the downfall of ESDM contribution to state revenues.
Various schemes were undertaken by the government to increase investment in the ESDM sector, from improving the legislation to granting incentives for oil and gas investors.(*)