BMN Upstream Oil And Gas Sector Assets Reached IDR 497.61 Trillion

Illustration of oil and gas (doc. Pertamina)

JAKARTA - The Ministry of Finance revealed that assets from the oil and gas sector which are state-owned assets, aka BMN, reach 5 percent of the total assets recorded at the 2019 Government Procurement Policy Institute (LKPP). The value reaches IDR 497.61 trillion.

Director of State Receivables and Other State Assets at the Ministry of Finance Lukman Effendi said the budget was divided into four posts. Pertana, assets of IDR 10.7 trillion, capital assets of IDR 462.12 trillion, inventory of IDR 0.11 trillion, and material supplies of IDR 25.32 trillion.

Lukman said, BMN was spread across 213 cooperation contract contractors (KKKS). Meanwhile, the details are that 99 production contractors, 88 exploration contractors and 26 contractors are already in the process of terminating or ending the contract with the Indonesian government.

"If seen from the role of BMN upstream oil and gas in supporting upstream oil and gas activities, both exploitation and exploration, this is very large in number and value. So that later BMN oil and gas management is very urgent to be managed properly, transparently and accountable. This is what makes it urgent for us to manage, "he said, in a virtual press conference, Friday, December 18.

The Rokan Block, which is currently managed by PT Chevron Pacific Indonesia, is the oil and gas block with the largest state-owned property assets. Then, the second, Pertamina Hulu Mahakam.

With its large value, the management of BMN in this sector is very important. Upstream oil and gas has long contributed greatly to the national economy.

"Apart from that, of course there are many other benefits of the upstream oil and gas industry sector. For example in the socio-economic sector it can absorb labor and others. It is also part of our efforts to achieve national energy security," he explained.

Lukman said, in terms of state revenue, in 2019, it was recorded that non-tax state revenue (PNBP) from upstream oil and gas reached IDR 179.5 trillion. For the management of its BMN, the government recorded PNBP of Rp155.4 billion. For the third quarter of this year, the figure was IDR191.4 billion.