IMPLEMENTATION OF PETROLEUM FUND IN INDONESIA

• Main Author: Ramadhani, Maghfira
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/56389
• Institution: Institut Teknologi Bandung

In the draft Oil and Gas Law discussed by the House of Representatives, there is a plan related to establishing the Petroleum Fund. The Petroleum Fund is considered one of the strategies to increase production and maintain energy availability. Various countries have implemented similar policies with different backgrounds and objectives. The formation, in this case, the collection and allocation of the Petroleum Fund in Indonesia should be in line with the theoretical framework and experiences of various countries in the formation of similar funds in order to provide benefits following the objectives. This study examined the model for collecting and allocating Petroleum Fund in Indonesia by reviewing theories and applications in the literature. A framework has been developed for formulating the Petroleum Fund model through a qualitative analysis of the implementation of similar policies in 13 countries. There were several alternatives of collection and allocation models that can be adapted to Indonesian conditions. The Analytical Hierarchy Process procedure was carried out to obtain expert perspectives regarding alternative Petroleum Fund models following Indonesian conditions. From the preliminary model, discussions were carried out to review the suitability of the model that had been generated. This study proposed the Indonesian Petroleum Fund model by collecting 30% of the country's net oil and gas revenues with the annual collection cap adjusted by the condition of petroleum subsidies. The Petroleum Fund allocation was proposed to form an Investment Fund and a Stabilization Fund, with investment being the highest priority of both. The priority sector for investment was proposed to be in the new and renewable energy sector.