REPUBLIKA.CO.ID, JAKARTA -- Oil prices dropped since the end of last year and had not improved until now. Head of Upstream Oil and Gas Regulatory Special Task Force (SKK Migas), Amien Sunaryadi, explained state revenues from oil and gas sector this year was estimated to only reach 13.22 billion US dollars or equivalent to Rp 182.6 trillion.

This amount showed that there was only 88.2 percent of target sector that was reached. At first, state revenues from oil and gas was targeted to reach 14.99 billion US dollars.

"In addition to the world oil price that has not improved, another reason is delay in operation of oil and gas in Banyu Urip, Cepu," Amien said, Monday (30/11).

Read: In 2016, tax revenue targeted to rise to 14.8 percent

Amien added, projected return on operating costs (cost recovery) for this year was estimated at 14.1 billion US dollars or equivalent to Rp 195.1 trillion. The biggest allocation in cost recovery was to support the operating activities. In the last five years, more than 50 percent of cost recovery was allocated to reimburse the production cost.

He said, this year, an estimated of 52 percent or about 7,332 billion US dollars of cost recovery was used to reimburse the production cost of the contractors. Subsequent allocation was to exploration and development costs, about 20 percent to 30 percent.

Other allocations were for depreciation of 20 percent, administration of 8 percent, investment credit of 3 percent, and unrecovered cost of minus 7 percent.

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