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Jakarta Post

Indonesian Crude Price projection approved at $48 per barrel

  • Winny Tang

    The Jakarta Post

Jakarta   /   Wed, July 12, 2017   /   10:53 am
Indonesian Crude Price projection approved at $48 per barrel Workers tighten a drill at an oil and gas block in Indonesia. (Kompas.com/File)

The House of Representatives budget committee has approved the assumption of the Indonesian Crude Price (ICP) at US$48 per barrel, lower than the proposed figure in the revised 2017 state budget of $50 per barrel.

However, an ICP of $48 per barrel is higher than the government’s deal with House Commission VII overseeing energy, set at $46 per barrel.

The new ICP assumption is a conservative decision as it is the midpoint between two previous figures, Banggar deputy chairman Said Abdullah said.

Read also: Govt braces for big reimbursement from Mahakam, Jangkrik fields

“An ICP of $48 per barrel will change the government’s calculation of state revenues than if the ICP was set at US$46,” Suahasil Nazara, the Finance Ministry’s fiscal policy head, said on Tuesday during a meeting at the House of Representatives complex in Jakarta.

The new set ICP assumption will allow for broader fiscal space for government spending, Suahasil added.

On the same day, Banggar and the government also decided on oil and gas production and lifted assumptions to 815,000 barrels of oil per day (bopd) and 1.15 million barrels of oil equivalent per day (boepd).

They also agreed on the basic assumptions of economic growth at 5.2 percent, inflation at 4.3 percent, the rupiah exchange rate at Rp 13,400 per US dollar and the interest rate for three-month treasury bills at 5.2 percent. (bbn)