Indonesian Crude Price Lower than Budget

VIVAnews - The median of the Indonesian crude price (ICP) from January to October 2009 is still lower than the one assumed in the 2009 State Budget. The assumed ICP between January and October was US$58.62 per barrel while the Budget predicts the price to be US$61 per barrel.

“The difference is US$2.38 per barrel,“ Minister of Energy and Mineral Resources, Darwin Zahedy Saleh said during the opinion-hearing meeting with the House of Representatives' Energy Commission in Jakarta on Monday, November 9.

Despite the escalating price of crude oil price recently, the subsidy budget on fuel is still sufficient. The implementation of the use of fuel oil and LPG subsidy budget until October was only 64 percent or equal to Rp 33 trillion.

According to Saleh, the fluctuation of the world's crude price which tends to decline during the beginning of the year, has also made the implementation of oil and gas sector's revenues to be lower than stated in the budget.

“Until October 2009, oil and gas have only earned Rp 124 trillion or 67 percent of the 2009 State Budget's target which is Rp 183.6 trillion,” he said.

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Translated by: Nataya Ermanti