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Dec 30, 2008
Huge jump in oil, gas revenue
JAKARTA - THE Indonesian government took in 303.1 trillion rupiah (S$39.2 billion) in revenue from oil and gas in 2008, a sharp rise from the 186.6 trillion last year, a minister said on Tuesday.

Energy and Mineral Resources Minister Purnomo Yusgiantoro said revenue from general mining rose to 42.1 trillion rupiah from 37.34 trillion.

He didn't provide reasons for the rises, but the higher revenue came as global oil, gas and commodity prices soared for much of 2008.

'Oil, gas and the mining sector contributed 36 percent to the government's total revenue for 2008,' Mr Purnomo said in a press conference.

Indonesia's crude oil output rose slightly to 978,000 barrels a day this year from 954,000 last year. Meanwhile, natural gas production fell slightly to 7.48 billion cubic feet a day from 7.67 billion in 2007.

Mr Purnomo said oil and gas companies invested a total 12.2 trillion rupiah in Indonesia in 2008, up from 11.2 trillion, and that is expected to rise to 25.4 trillion rupiah in 2009, Mr Purnomo added.

Mining companies invested 1.65 trillion rupiah this year, up from 1.25 trillion rupiah, he said.

New mining investment in resource-rich Indonesia has been stagnant in past years due to a lack of regulatory certainties.

Parliament earlier this month passed a new mining law to open up investment, but many mining executives said it will likely fail to attract big firms due to limitations on the size of the area that can be awarded to a single company. -- AFP

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