INDONESIAN GOVT CONCERNED OIL OUTPUT TARGET
The government is beginning to show concern that the country could achieve its crude oil production target this year amid soaring price in the world market.
Head of the fiscal policy of the finance ministry Anggito Abimanyu said the country’s crude oil production has shown a downtrend, adding production has always been below 917,000 barrels as against the target of 927,000 barrels per day.
The trend is feared to continue caused mainly by technical factors and weather, he said yesterday.
Failure to reach the target may widen the 2008 state budget deficit, but the total oil and gas revenues will still exceed spending on fuel subsidies and income share to be paid to oil producing regions, he said.
A decline of 10,000 barrels per day in crude oil production will mean a decline of about Rp2 trillion (US$220 million) in the state revenue a year, he added. (ANTARA)