Performance of Energy Sector in 2021: Oil and Gas still Contributes Highest to Non-Tax Revenues

MINISTRY OF ENERGY AND MINERAL RESOURCES

REPUBLIC OF INDONESIA

PRESS RELEASE

NUMBER: 19.Pers/04/SJI/2022

Date: 12 January 2022

Performance of Energy Sector in 2021: Oil and Gas still Contributes Highest to Non-Tax Revenues

Amid of the challenges of national economic recovery due to the Covid-19 pandemic, the Ministry of Energy and Mineral Resources (EMR) has continued to perform successfully throughout 2021.

"The realized Non-Tax State Revenues (PNBP) in the EMR sector in 2021 reached Rp189.2 trillion, or 156% of the target of Rp121.2 trillion," said Minister of EMR, Arifin Tasrif, in a press statement on the Performance of 2021 and the Work Program for 2022 of the Ministry of EMR held in Jakarta on Wednesday (12/1).

The PNBP realization, said Arifin, consisted of the oil and gas PNBP of Rp103.2 trillion, mineral and coal PNBP of Rp75.5 trillion, new, renewable energy and energy conservation of Rp1.9 trillion and other PNBP of Rp8.6 trillion. Other PNBP revenues come from downstream oil and gas business entity fees, Oil and Gas DMO, data sales, rental services, public service agency (BLU) income, etc.

"The Ministry of EMR has continued to encourage an increase in the PNBP, among others through the rise in oil and gas lifting and the supervision of mineral, coal and geothermal production," said Arifin.

In line with the growth in state revenues, investment in the EMR sector has continued to improve. In fact, the realized investment in 2021 hit USD28.2 billion, or 107% compared to that of 2020.

The oil and gas subsector still contributes the highest investment of USD15.9 billion, followed by the electricity subsector of USD6.8 billion, mineral and coal with USD4.1 billion, and new, renewable energy and energy conservation of USD1.4 billion. Based on the achievement, the government has set an investment target in the EMR sector for 2022 at USD32.6 billion.

The Ministry of EMR has taken strategic steps to increase investment, from providing incentives, overcoming issues in land acquisition, facilitating the licensing process; encouraging the growth of electricity demands by smelters, special economic zones, industrial areas, and other large customers, and mitigating the impacts of the Covid-19 pandemic which has hampered capital expenditure and labor mobility.

To maintain people's purchasing power during the economic recovery, the government will still provide energy subsidies. "The realized energy subsidies in 2021 amounted to Rp131.5 trillion, consisting of fuels and LPG subsidies of Rp83.7 trillion, and electricity subsidy of Rp47.8 trillion," Arifin concluded.

For 2022, the government has allocated Rp134 trillion for energy subsidies, with Rp77.5 trillion to be given as fuel and LPG subsidies and Rp56.5 trillion as electricity subsidy. (IY)

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