State budget designed to allow for rising crude prices: Ministry
Marchio Irfan Gorbiano
The Jakarta Post
Seeking to allay concern about the impact of rising global oil prices on state finances, the government has emphasized that the 2018 state budget is designed to handle such market fluctuation.
“The increase in the ICP will, on the one hand, jack up our revenue; on the other hand, we must shoulder a higher [energy] subsidy,” the Finance Ministry’s budgeting director general, Askolani, said in Jakarta on Monday. The two state budget posts were designed to be flexible, he added.
The Indonesian Crude Price (ICP) – the government’s oil price benchmark – soared to US$66.6 per barrel on average in the first half of this year, which compares to $48 per barrel assumed in the 2018 state budget.
The government expects the higher-than-assumed ICP to result in a non-tax revenue windfall from the natural resources sector.
Hence, the government in its latest projection expects non-tax revenue of Rp 349.2 trillion ($24.15 billion) this year, far exceeding the Rp 275.4 trillion target stipulated in the 2018 state budget.
Meanwhile, the energy subsidy was projected to swell to Rp 163.49 trillion this year from the 94.52 trillion initially stated in the budget. (bbn)
- North Sumatra's regent nabbed in antigraft operation
- 22 migrants missing off Morocco after boat capsizes
- Indonesia's latest economic stimulus package: What you need to know
- Republican urges conservatives to run against Trump in 2020
- Trump says doesn't want to hear 'suffering' Khashoggi tape
- 'Waria' told to leave their home in Jakarta amid anti-LGBT campaign
- Political parties clash over sharia-based bylaws
- Your next Uber ride may have a minifridge stocked with snacks
- Indonesia launches 16th economic package
- Boeing ‘confident’ in 737 MAX safety despite aircraft flaw