Government Asked To Improve Investment Climate In Upstream Oil And Gas Sector

Migas (Photo: Doc. Antara)

JAKARTA - Member of the Indonesian House of Representatives from the PKB faction, Abdul Wahid, asked the government to improve the investment climate by making a scheme that makes big investors feel safe and comfortable.

"In addition, the government must increase the Enchanced Oil Recovery (EOR) to increase production from existing reserves because technology allows it to be implemented in Indonesia," he said while reading the views of his faction, PKB, at the DPR RI Plenary Session, Senayan, Jakarta, Tuesday 23 March.

Abdul Wahid also asked the government to work harder to realize the promise to increase production to 1 million barrels per day in order to cut import dependence to meet domestic consumption needs.

"Moreover, in the past few years, although the target has been lowered, Indonesia's oil and gas lifting results have never been achieved," he continued.

He further added that the assumption that the price of Indonesian crude oil (ICP) in 2024, which ranges from 75 to 85 US dollars per barrel, is quite realistic. This is because the demand and supply of crude oil in the international market is still quite balanced.

"The FPKB continues to ask the government to continue to pay attention to OPEC's policies in its crude oil production which can result in an increase in oil prices," he said.

He assessed that the increase in world oil prices could certainly increase state revenue from the oil and gas sector, but this effort certainly could not continue in a sustainable manner considering that domestic lifting targets were often not achieved.

"In addition, fluctuations in crude oil prices actually pose a risk of putting post-subsidized pressure on the state budget," he concluded.