Delayed Fuel Control, Budget Deficit Rises

Pom Bensin Pertamina.
Sumber :
  • Antara/ Ari Bowo Sucipto

VIVAnews - Royal Bank of Scotland Regional Economist, Su Sian Lim, commented on the fuel control policy that the Indonesian government has again called off recently. "More budget deficit will be recorded," Lim said today, March 8.

Lim cited the current hike in world oil prices which may hit US$120 per barrel leading to possible deficit of three percent. "The government tends to postpone fuel control if oil prices are increasing," he said.

"What if oil prices keep on rising until July? Would fuel control be suspended to December?" said Lim.

Danareksa Institute Chief of Researchers, Purbaya Yudhi Sadewa, said soaring oil prices should not incite unrest amid government officials. "State budget is still secure, for the government has yet to spend it within the last three years," he said.

Purbaya estimated that world oil prices are now tagged at US$110 per barrel, causing the budget to have Rp 1 trillion of deficit.

However, he believes the prices will in no time fall as US Department of Energy announced that the real demand on oil is measured at US$90 per barrel.

"The government can make it," he said.

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25 April 2024