The Indonesian government estimates that revenue from the oil and gas sector will surge by 41 per cent to Rp153.10 trillion ($15.56 billion) this year, as high oil prices in the global market offset lower production from the country's ageing fields.

It would be an increase from last year's Rp108.21 trillion, even though crude and condensate output dropped to 1.061 million barrels per day (bpd) on average throughout 2005 from 1.094 million bpd recorded the previous year, Energy and Mineral Resources Minister Purnomo Yusgiantoro said.
'The mining and energy sector remains one of the biggest contributors to state income, aside from taxes,' said Purnomo in a meeting on the evaluation of his department's activities this year.
The rupiah weakening against the US dollar also contributed to the increase in revenue, the ministry's report said. Gas production fell slightly to 2.95 trillion cubic feet (tcf) this year from 3.03 tcf in 2004.
Purnomo also said that the country continued to book higher crude and condensate exports than imports. It is estimated that Indonesia exported 151.72 million barrels of oil, worth $8.05 billion, and imported 126.18 million barrels valued at $5.79 billion.
According to ministry data, some 178.87 million barrels of oil were exported last year, while 148.49 million barrels were imported. Lower exports this year are attributed to a decline in production and lower imports to a fall in demand, particularly after the government raised fuel prices by 126.6 per cent on October 1.
State oil and gas firm PT Pertamina has said that subsidised fuel consumption would reach only 55.6 million kiloliters (kl) this year, lower than the set quota of 59.6 million kl, since industry stopped using subsidised fuel in July and regular customers reduced use after the prices doubled.
Despite the lower consumption, up to November, the fuel subsidy -- which keeps the prices of Premium gasoline, diesel fuel and kerosene used by transportation, small industries and households below market prices -- reached Rp 96.43 trillion, exceeding the allocation of Rp 89.2 trillion in the state budget by eight per cent.