World Bank: Oil and Gas Revenues in 2007 Decrease
Tuesday, 13 February, 2007 | 16:43 WIB

TEMPO Interactive, Jakarta: The World Bank has estimated that Indonesia's proceeds from the oil and gas sectors by this year have decreased by 20 percent compared to last year's with Rp228 trillion.

The reason was that, according to Senior Adviser of Extractive Industries Transparency Initiative (EITI) David W. Brown, the ups and downs of the world's crude oil price have much affected the revenues. “(This year) the oil price has decreased once,” he said yesterday (02/12) in Jakarta.

EITI, located in Norway, was an institution that the World Bank established. Its members consist of developing countries.

Brown added that the contribution of the oil and gas sectors last year was high since the oil price during 2006 rose. Whereas this year, it happened to decreasing drastically. He suggested that the Indonesian government could add to state revenues by optimizing tax income.

In addition to boosting tax income, according to him, the Indonesian government could reduce the profit of the oil and gas sectors by cutting production costs. Nigeria has managed to implement such a measure. The oil producer country has boosted state revenues from the oil and gas sectors with US$2.2 billion in 2004 and 2005. The Nigerian government was efficient in collecting taxes and gaining income from an auction of the operation permit.

Energy and Mineral Resources Minister Purnomo Yusgiantoro said that the energy sector played a decisive role in contributing to state revenues. “The Energy sector also put up a multiple effect for the life of society,” said Purnomo.

Purnomo stated that the energy sector contributed 34 percent of state revenues last year with Rp228 trillion.

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