President Prabowo, Energy Minister Discuss Oil Price Fluctuations

Minister of Energy and Mineral Resources Bahlil Lahadalia delivers press statement at the Presidential Palace, Jakarta, on Tuesday (05/05). (Photo by: BPMI of Presidential Secretariat)

Minister of Energy and Mineral Resources Bahlil Lahadalia reported on the progress of various strategic projects in energy and mining sectors to President Prabowo Subianto at the Presidential Palace, Jakarta, on Tuesday (05/05).

During the meeting, Bahlil and the President discussed the impact of global crude oil price fluctuations on the Indonesian Crude Price (ICP), which eventually leads to determining national energy policy and state revenue. In addition, the Government also highlighted plans for future restructuring of the mining sector, emphasizing an increase in the proportion of state ownership, in line with the mandate of Article 33 of the 1945 Constitution.

Bahlil further stated that the Government is also committed to optimize state revenue sourced from natural resources, including both the existing and new mining operations. He added that the optimization will be pursued by strengthening an adaptive and beneficial cooperation scheme.

“We will strive to optimize state revenue through, for example, profit sharing (scheme) from the exploration of our oil and gas sector. In our oil and gas industry, there are schemes such as cost recovery and gross split which we will try to develop and implement for the establishment of cooperation with the private sector,” he said.

Through this policy, President Prabowo underscored that the future management of energy and mining sectors will not be focused solely on production, but also on sovereignty, value-added, and the welfare of the Indonesian people. (BPMI of Presidential Secretariat) (RAS/MMB)