The government has taken a new strategic step to improve the oil and gas trade balance, which continues to be a deficit so far. Taking PT Pertamina‘ investment abroad as primary income in the balance of payments is the only policy improvement that has the potential to benefit Indonesia, said a senior minister on Wednesday (May 22).
Coordinating Minister for Economic Affairs Darmin Nasution in Jakarta. said there was a widening of Indonesia’s trade balance transactions so far. With the new policy mix, he said, the government stipulates that it still records the import of crude oil from Pertamina‘ overseas investment in the Trade Balance.
The recording, said Nasution, is in accordance with the standards of the International Merchandise Trade Statistics and the standard of the Balance of Payment Manual International Monetary Fund.
In addition, according to the policy of the Energy and Mineral Resources ministry as of May 2019, the utilization of domestic crude oil which is usually exported is still processed domestically for the domestic market.
Meanwhile, crude oil from the exploration of parts of the Cooperation Contractors in the country which have been exported, some of which are processed at Pertamina’s domestic refineries. “This will reduce the import of crude oil that Pertamina needs to produce fuel, such as diesel fuel and aviation turbine (avtur),” he said.
The minister stressed that, if the new policy is carried out tactically, the trade balance, especially the current account deficit (CAD), can be anticipated and reduced.