VOI - Voice of Indonesia | RRI - Radio Republik Indonesia

The realization of the average Indonesian Crude Price (ICP) increased to 42 US dollars per barrel by September 2020 from the macro assumption of the Revised State Budget (APBN-P) of 38 US dollars per barrel.

This has a positive impact on state revenues which reached 6.99 billion US dollars or 119 percent exceeding the Revised Budget target of 5.86 billion US dollars.

The Head of the Bureau of Communication, Public Information Services, and Cooperation (KLIK) of the Ministry of Energy and Mineral Resources Agung Pribadi in a written statement on Tuesday said that the realization of this ICP exceeded the ICP target set in the 2020 APBN-P.

"Average ICP the APBN-P itself is set at 38 US dollars per barrel," said Agung.

The Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) projects that the emergence of COVID-19 wave 2 is expected to cause an average ICP per year of US $40 per barrel so that the outlook for state revenues from the upstream oil and gas sector at the end of 2020 will reach 7.21 billion US dollars.

For cost recovery control, until September 2020, the realization had reached the $5.97 billion from the target of $8.12 billion or around 73.5 percent.

Meanwhile, the investment realization in the third quarter was supported by Pertamina E & P, CPI, Pertamina Hulu Mahakam, BP Berau, and Eni East Sepinggan. This achievement had a major impact on the country's economy.

"When conditions are difficult like this, the country needs an economic turnaround. We are sure that upstream oil and gas investment will create a side impact on the Indonesian economy so it can restore the economy," hoped the Head of SKK Migas Dwi Soetjipto.

Dwi acknowledged that the COVID-19 pandemic affected the management of the upstream oil and gas sector.

"Due to the emergence of the second wave of the COVID-19 pandemic, the condition of world oil demand is still unstable. This will affect world oil price movements," he said.

According to him, COVID-19 affects postponing several projects, reducing investment. With a falling selling price, it will also affect cash flow, and funds will be more focused on productive Oil and Gas Work Areas (WKs).

Globally, it is estimated that investment in the oil and gas sector will decrease by around 30 percent. (Antaranews)