Indonesian Crude Price projection approved at $48 per barrel

Indonesian Crude Price projection approved at $48 per barrel

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.

"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.

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Link to Original Article:
http://www.thejakartapost.com/news/2017/07/12/indonesian-crude-price-project
ion-approved-at-48-per-barrel.html

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John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com