Wednesday, 16 September 2009

Parliament Sets Assumption of Indonesia’s Crude Oil Price at USD 60 – USD 70 Barrel

Commission VII of Parliament stipulated Indonesia’s assumption of crude oil prices (ICP) for National Budget (RAPBN) 2020 at USD 60 to USD 70 per barrel. The Parliament and Government agreed on assumption of ICP for National Budget (RAPBN) 2010 at USD 60 – USD 70 per barrel. This was disclosed by Chairman of Commission VII the Parliament Airlangga Hartanto upon leading a session with the Minister of ESDM and related State Owned Enterprises at the House of Representatives.

Formerly member of Commission VII of Parliament, Tjatur Sapto Edy stated, crude oil price (ICP) should be assumed at USD 65 per barrel, based on Indonesia’s positive economic growth. Because ICP assumption of 2009 had been set at USD 61 per barrel, it was moist unlikely to be down by 2010. The ideal level of ICP was USD 65 per barrel considering the 2009 level was USD 61 per barrel.

Other member of Parliamentary Commission, Syamsul Bachi urged the Government to make average assumptions of ICP, particularly the minimum average. If in 2009 the Government set the minimum average assumption to be USD 50 – USD 70 per barrel, in 2010 it should be narrowed down to USD 60 – USD 70 per barrel whereby the Government could use the figures more objectively.

Meanwhile the Minister of Energy and Mineral Resources Purnomo Yusgiantoro in his presentation elaborated, that in fact price of the world’s crude oil was basically unpredictable due to several influencing factors like demand for oil, among others increase of supply from states as members OPEC and those outside OPEC. So far the Government has always been giving recommendations of average value to the Parliament about ICP assumptions. The Government already had given recommendations to the Budgeting Committee of the Parliament on ICP assumptions at USD 50 – USD 70 per barrel. Apparently there was no difference between the Government and Parliament’s assumptions.

No comments: