Indonesia concerned over declining oil output
The Indonesian government expressed concern Friday over the continued decline in oil production in the last 10 years that could cause the budget to miss revenue target.
"The current production hovers around 900,000 barrels per day, and we have set a target of 1.03 million barrels per day for the 2008. Any loss of just 0.1 (percent) from the target would cost us one trillion rupiah (around 106.5 million U.S. dollars)," Finance Minister Sri Mulyani Indrawati said at her office here.
The oil production target was slightly raised on hope of a significant production rise from the major Cepu oil block in East Java.
A decade ago, Indonesia enjoyed high oil output of 1.3 million barrels per day to become one of the world's major oil exporters, but has since seen production keeps falling due to natural depletion and lack of new investment in the sector.
Although Indonesia is closer to become a net oil importer, it retains membership in the Organization of Petroleum Exporting Countries (OPEC).