Govt has enough ammo for Hormuz crisis impact
Hans David Tampubolon, The Jakarta Post, Jakarta | Tue, 01/24/2012 9:46 PM
Finance Minister Agus Martowardojo says that the government has enough reserves to mitigate potential fluctuations of oil price due to the escalating conflict in the Strait of Hormuz in Iran.
Iran has threatened to block oil shipments through the strait should the United States and the European Union impose sanctions on their crude oil exports.
The sanctions were aimed at pressuring Iran to abandon its suspected nuclear weapons program.
The strait reportedly serves as a significant route for oil cargoes from the Persian Gulf.
“We have been continuously monitoring the situation in the Middle East. If this situation drives oil prices to soar and affects our budget, then we will propose a revision in our [2012] State Budget,” Agus told reporters at the House of Representatives in Jakarta on Tuesday.
“We also have a lot of reserves. We have Rp 15 trillion [US$1.67 billion] in fiscal reserves, Rp 40 trillion in social reserves, Rp 40 trillion in non-fuel subsidy reserves and Rp 2 trillion in rice reserves,” he added.
Agus claimed that the government had also conducted research to anticipate changes in global conditions since the first week of December last year.
“Our research focuses not only on fiscal and monetary stability, but also on the how to make sure our real sector grows and social security is insured,” he said. (mtq)
