JAKARTA - Member of Commission VII DPR RI, Mulyanto, assessed that the government is inconsistent in reducing oil and gas imports. As a result, the current account deficit in this sector continues to swell.
"The management of national oil and gas imports looks increasingly out of control. Has the government lost in the face of pressure from the oil and gas import mafia? The government must clarify this matter," said Mulyanto, in Jakarta, Friday, June 18.
From the existing data, Mulyanto said, there is no visible government effort to reduce the value of oil and gas imports in 2021. Even though this policy is expected to directly reduce the current account deficit from the oil and gas sector, especially fuel and LPG gas.
Furthermore, Mulyanto said that the government actually seemed to let go of the control of oil and gas imports. As a result, the current account deficit from the oil and gas sector has widened again. Therefore, Mulyanto asked the government to be serious and consistent in dealing with this oil and gas import problem.
"Because in the midst of our limited fiscal space, the current account deficit must be kept to a minimum, so that our money does not run out," he said.
Mulyanto said that it must be admitted that the state's financial condition is currently difficult. Even to finance various programs to overcome the COVID-19 pandemic, it is not sufficient and must be in debt.
Therefore, the Deputy Chair of the FPKS DPR RI for Industry and Development said that it is appropriate that oil and gas imports which can deplete the country's foreign exchange are limited and substituted from domestic sources.
The latest data from BPS shows that in May 2021 there will be a surge in oil and gas imports of US$ 2.06 billion, up 212 percent compared to the same month in 2020 year on year (yoy).
Meanwhile, the current account deficit for the oil and gas sector in May 2021 was 1.12 billion or when compared to the same month in 2020 on an annual basis or increased by 1020 percent yoy.
"This is a fantastic number. It has skyrocketed more than ten times," said Mulyanto.
The monthly average current account deficit in the oil and gas sector in 2021 is USD 0.933 billion. Thus, it is predicted that the total current account deficit in the oil and gas sector for 2021 will increase to US$11 billion. Whereas previously in 2019 it was only 10 billion US dollars and even only 6 billion US dollars in 2020.
"This means that there will be an increase in the current account deficit in the oil and gas sector in 2021. The figure is predicted to reach 86 percent compared to 2020. Whereas in previous years the current account deficit in the oil and gas sector has tended to decline," he said.
The current account deficit in the oil and gas sector in 2019 was only USD 10 billion, a decrease of 20 percent from the previous year which was USD 12.7 billion.
"And even in 2020, the current account deficit in the oil and gas sector is only USD 6 billion, a sharp decline of 41 percent from the previous year which reached USD 10 billion," he said.
Therefore, Mulyanto urged the government to be wary of imports and the trade balance of the oil and gas sector in the second half of 2021, for fear of another spike.
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