Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif proposed a cost recovery budget or recovery of upstream oil and gas operating costs for the 2025 fiscal year in the range of US$8.5 billion to US$8.7 billion. Arifin said that the request for a wider cost recovery budget was quite reasonable because exploration and seismic survey activities will be increasingly busy next year.
Meanwhile, the government targets cost recovery to be realized by the end of this year at US$8.25 billion. Nevertheless, said Arifin, this year’s cost recovery outlook could be lower than the prepared allocation due to the current efficiency program for upstream oil and gas activities.
As of April 2024, the realization of cost recovery had reached US$2.12 billion or 25.7% of the total cost recovery budget prepared this year. Meanwhile, Commission VII DPR RI agreed that the cost recovery budget for 2025 would be in the range of US$8.25 billion to US$8.5 billion.
