Energy sector contributes Rp400 T, falling commodity prices drag down revenues: ESDM ministry

  • Published on 01/08/2025 GMT+7

  • Reading time 2 minutes

  • Author: Julian Isaac

  • Editor: Imanuddin Razak

The Ministry of Energy and Mineral Resources (ESDM) has revealed that the national energy sector − through total earnings from taxes, non-tax revenues, and other sources −  contributes approximately Rp400 trillion (US$25 billion) to state revenues annually, said Director General of Mineral and Coal at the ministry Tri WInarno.

“From all sectors under ESDM, the contribution is around Rp400 trillion each year, covering taxes and other forms of revenue,” Tri on the sidelines of the 2025 Energy and Mineral Festival on Thursday, July 31, 2025.

He emphasized that the mineral and coal subsector remains the top contributor, followed by the oil and gas (migas) sector. “Coal accounts for around Rp100 trillion, oil and gas slightly more. Overall, mineral and coal generate the highest revenue,” he cited.

Tri also provided an update on non-tax state revenue (PNBP) performance. As of July 15, 2025, PNBP from mineral and coal reached Rp71 trillion, about 57.26 percent of the Rp124 trillion target.

In contrast, PNBP from the oil and gas sector stood at Rp39 trillion as of July 31, just 30 percent of its Rp130 trillion target. Tri acknowledged that this year’s PNBP from ESDM sectors declined compared to the same period in 2024 due to falling commodity prices and reduced production levels. “If production drops and prices fall, naturally, revenues also decline,” he said.

Meanwhile, the Upstream Oil and Gas Regulatory Task Force (SKK Migas) had earlier projected that state revenue from upstream oil and gas would miss its 2025 target. The government set a revenue target of US$13.03 billion (Rp212.45 trillion), but by mid-year, only US$5.88 billion (45.1 percent) had been realized.

SKK Migas Head Djoko Siswanto projected that total revenue for the year would only reach US$10.83 billion or 83.1 percent of the annual target. He attributed the shortfall mainly to the lower-than-expected global oil prices.

“The state budget assumed an oil price of US$82 per barrel, but the actual average has only been around US$69 per barrel. Naturally, the revenue target will not be met,” Djoko told a press conference in Jakarta on July 21, 2025.

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