DPR Pan Faction Criticizes Oil And Gas Target In Rapbn 2022: Don't Be Too Ambitious, Later Heavy PNBP Projection

Offshore energy exploration facilities (Photo: Doc. Between)

JAKARTA - The National Mandate Party (PAN) faction in the House of Representatives has criticized the government's plan to lift oil and gas (oil and gas) in the 2022 Draft State Budget.

Through his spokesman, Jon Erizal, the reform-era party considered the targets set by the government next year in the energy sector to be less relevant. Because, assumptions made based on real conditions in 2020 that tend to be under pressure and are expected to continue until next year.

"Reflecting on the realization of oil and gas lifting in 2020, the PAN Faction reminded that the target of oil and gas production in 2022 is not too ambitious so that it has an impact on the projection of PNBP (non-tax state revenues) of oil and gas natural resources are too high," he said in the Plenary Meeting of the House of Representatives with Finance Minister Sri Mulyani at the Parliament Complex Senayan, Jakarta, Tuesday, May 25.

Nevertheless, Jon hopes that the government can increase the realization of state revenues in line with rising global energy commodity prices driven by rising demand.

"However, pan faction believes that in the midst of the trend of improving commodity prices, it is appropriate that gas and petroleum production can have a positive impact on state revenues," he said.

In particular, Jon asked the government through the Minister of Finance to implement some of the recommendations submitted by his faction.

First, urge the government to increase investment flows to the oil and gas sector to replace dead wells, or revitalize old wells that are still productive, as well as seek new exploration fields.

Second, encourage the use of gas fuel in industrialization process activities that are currently happening because it has the advantage of economic and also environmentally friendly.

Three, tErus boosts domestic crude oil production in order to reach the target of 1 million barrels per day by 2030.

To note, when delivering the 2022 Rapbn Minister sri Mulyani mentioned that one of the macroeconomic indicators used in the preparation of the state budget in the next year is the lifting of crude oil 686,000-726,000 barrels per day, as well as lifting gas 1,031 - 1,103 barrels per day equivalent to oil.

"In general, the PAN Faction supports the government's delivery of the macroeconomic framework and fiscal policy points in the 2022 budget year budget with caution against various risks that could lead to a missed state revenue, potentially adding to the fiscal deficit," jon concluded.