Indonesia's Oil Production Constantly Falls

Oil and mining research agency ReforMiner Institute states in its report that the reason behind constant fall of Indonesia's oil lifting within the past few years has been the application of Law No.22/2001 on Oil and Gas. 

The law stipulates that upstream management and monitoring is surrendered to Upstream Oil and Gas Regulator (BP Migas).  

Meanwhile, Law No.4/1960 and Law No.8/1971 on State Oil and Gas Mining Companies emphasizes the management and monitoring of national oil and gas sector by state-owned firm, which is Pertamina. 

ReforMiner shows that between 1972 and 2001, the government recorded 1.48 million barrels of oil per day. Meanwhile, between 2002 and 2010, the the oil production was only 1.0 million barrels. 

Average production increase of 1.16 percent per year was booked between 1971 and 2001. On the other hand, 2002-2010 witnessed decrease of average oil production by 2.86 percent. Yet, average oil reserves also went down from 7.1 biillion barrels (1971-2001) to 4.3 billion barrels between 2002 and 2010.