Realization Of Energy Subsidy 2022 Ministry Of Energy And Mineral Resources Capai Rp157.6 Trillion

Minister of Energy and Mineral Resources Arifin Tasrif. (Photo: Doc. Antara)

JAKARTA - The Ministry of Energy and Mineral Resources (ESDM) reported the realization of the 2022 energy subsidy of IDR 157.6 trillion.

Minister of Energy and Mineral Resources Arifin Tasrif detailed that the subsidy consisted of fuel and LPG subsidies of Rp97.8 trillion, and electricity subsidies of Rp59.8 trillion.

"Energy subsidies are maintained to maintain people's purchasing power in economic recovery," Arifin said at a press conference in Jakarta, Monday, January 30.

He continued, for 2023 the Ministry of Energy and Mineral Resources is targeting subsidies of IDR 209.9 trillion with details of fuel and LPG subsidies of IDR 139.4 trillion and electricity of IDR 70.5 trillion.

"In 2023 we estimate the number of subsidized allocations is quite large because we know the conflict is still not over and of course this reduces the large supply from Russia and also the possibility of increasing demand from China," explained Arifin.

Regarding the performance of domestic oil and gas lifting, Arifin said the realization of oil lifting reached 612,000 barrels per day, below the target of 703,000 barrels per day.

Meanwhile, gas lifting reaches 955,000 barrels of oil equivalent per day, below the target of 1.036 million barrels of oil equivalent per day.

"The performance of our oil wells shows a downward trend because it has matured and there are things that cause production losses such as unplanned shutdown," he said.

To encourage the achievement of the oil production target of 1 million barrels per day and 12 BSCFD natural gas in 2030, the government has prepared easy investment and incentives.

Strategies to increase oil and gas production include optimization of existing field production, transformation of Resources to Production, accelerating Chemical EOR and massive exploration for major discoveries.