Achievement of 3 Years of EMR Sector: EMR Sector is Projected to Grow 35% By Late 2017

JAKARTA - The role of the Energy and Mineral Resources (EMR) sector in the national economy, one of which is reflected in its contribution to state revenues. The value is derived from the Income Tax (PPh) and Non-Tax State Revenue (PNBP) of subsectors Oil and Gas (Oil), New and Renewable Energy (NRE), also Mineral and Coal (Minerba). Once weakened in 2016 (Rp 111.97 T), the contribution of the EMR sector recorded an increase 6% by September 2017, and is projected to increase by 35% by the end of 2017.

The oil and gas subsector still recorded the highest state revenue from two other sub-sectors. In fact, compared to last year, until September 2017 oil and gas contribution increased by about 10.25% to Rp92.43 T. The world oil price increase which previously weakened has contributed to the increase of EMR contribution to state revenue in 2017 which reached 118, 69 T.

This achievement is higher than the previous year which was at Rp111.97 T. State revenue from the three EMR subsectors is projected to increase again by the end of 2017, each noted the following figures: Oil and Gas Rp118.44 T, NRE Rp0, 66 T and Minerba at Rp32.40 T.

The last three years (2014-2016) became a test for the oil and gas industry globally. The fall in the price of petroleum that impact on the decline in production, became the base of the scoop for the decline in the contribution of EMR to state revenues. Various schemes are undertaken by the government to increase investment in the EMR sector, from improving legislation to providing incentives for oil and gas investors. (NA)

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