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Indonesian Crude Price projected at US$60 per barrel in 2020
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Energy and Mineral Resources Minister Ignasius Jonan. (Antara/Akbar Nugroho Gumay)
T
he Energy and Mineral Resources Ministry and House of Representatives Commission VII, which oversees energy policy, have agreed to assume an Indonesian Crude Price (ICP) of US$60 per barrel for the 2020 state budget.
The decision was made at a recent hearing, in which the two parties also agreed on the oil and gas lifting target at 1.893 million barrels of oil equivalent per day (BOEPD).
Cost recovery for 2020 is seen at $10 billion to $11 billion
Meanwhile, the amount of subsidized fuel was put at 15.87 million kiloliters (kl) and 7,000 million tons of liquefied petroleum gas (LPG) distributed in 3-kilogram kg canisters.
The ministry and the House commission also agreed to allocate Rp 58.62 trillion ($4.15 billion) for electricity subsidies in 2020, down from Rp 59.32 trillion this year, but Energy and Mineral Resources Minister Ignasius Jonan said the amount of the subsidy would be discussed further.
“There is a note that, if the electricity price for customers of 900 VA is adjusted, the subsidy will decrease by Rp 6 trillion,” Jonan said over the weekend, as quoted by kontan.co.id.
Jonan said he had proposed Rp 9.67 trillion for the energy ministry budget for 2020, including for salaries of civil servants, building maintenance, expansion of household gas connections, converter kid assistance for fishermen and electricity connections for low-income households.
Meanwhile, House Commission VII called on the minister to make optimal use of the budget for the interests of the people.
“We call on the minister to provide clear guidance [for his subordinates], so that the spending by the ministry will be based on principles of efficiency, effectiveness, productivity and problem solving for people’s problems,” Commission VII deputy chairman Ridwan Hisyam said (bbn).
