Sign up | Log in



Home  >>   Daily News  >>   Indonesia  News  >>   Energy  >>   Oil prices no threat to Indo budget
NEWS UPDATES Asean Affairs        21  March 2011

Oil prices no threat to Indo budget

Related Stories

March 15, 2011
Indonesia ready to supply Japan with fuel

March 10, 2011
Indonesian solution to subsidy quotas

February 28, 2011
Controversial late night Indo rate cut planned

February 10, 2011
Coal gasification plants rise in Indonesia

February 8, 2011
No more delays for Indonesian coal shipments

February 3, 2011
Indonesia urged to up oil price estimate

The Indonesian national budget is safe despite rising oil prices, Finance Minister Agus Martowardojo said, giving assurances there will be no fuel price increases this year.

“Even if oil prices hit $100 per barrel, if the rupiah is at Rp 8,800 per dollar, our budget is safe and sound,” Finance Minister Agus Martowardojo said on Saturday.

The average oil price in Indonesia in the past 12 months was $86.35 per barrel, Agus said, higher than the $80 per barrel assumed in the 2011 state budget.

The government forecast the Indonesian Crude Price — its benchmark for crude imports and exports — would average $80 per barrel while the rupiah would average 9,250 to the US dollar. It uses seven assumptions to calculate its budget, including oil prices, inflation, economic growth and the rupiah’s exchange rate against the dollar.

“By the end of this year, the average ICP will be above our assumptions,” Agus said. He said each $1 deviation above the assumption could swell the budget deficit by Rp 800 billion ($91.2 million) as the cost of fuel subsidies increases.

He also said there were concerns over the country’s oil production, which has a target of 970,000 barrels per day. Upstream oil and gas regulator BPMigas has estimated production could be 945,000 bpd to 970,000 bpd, while the Finance Ministry’s more pessimistic projection was 950,000 bpd.

Lower production combined with higher global oil prices creates pressure in the budget as the government still subsidizes fuel. Its fuel subsidy bill is forecast to reach Rp 92.8 trillion this year.

For every 5,000 bpd Indonesia falls short of its oil production target, the budget deficit could swell by up to Rp 900 billion. However, Agus said, for each Rp 100 the currency strengthens against the dollar, the deficit shrinks by Rp 1.7 trillion.

The rupiah traded at Rp 8,765 against the dollar on Friday, stronger than the Rp 9,250 assumed in the state budget.

According to a World Bank report on Wednesday, the richest 10 percent in Indonesia enjoy Rp 135,000 of fuel subsidy per capita, while the poorest 10 percent receive just Rp 23,000 per capita.

Reach Southeast Asia!
10- Nations, 560- Million Consumers
And $1 -Trillion Market
We are the Voice of Southeast Asia Media Kit
The only Media Dedicated to Southeast Asia Advertising Rates for Magazine
  Online Ad Rates

Comment on this Article. Send them to

Letters that do not contain full contact information cannot be published.
Letters become the property of AseanAffairs and may be republished in any format.
They typically run 150 words or less and may be edited
submit your comment in the box below




1.  Verifier

1. Verifier

For security purposes, we ask that you enter the security code that is shown in the graphic. Please enter the code exactly as it is shown in the graphic.
Your Code
Enter Code

Today's  Stories    21  March 2011 Subsribe Now !
 • Oil prices no threat to Indo budget
Subcribe: Asean Affairs Global Magazine
• Indo exports to Japan should drop, but rebound Asean Affairs Premium
• Malaysia market for electronic sales

• Philippines hopes to create a million jobs

Research Reports
on Thailand 2007-2008

•Textiles and Garments Industry

•Coffee industry

•Leather and footwear industry

•Shrimp industry

• Increase in Philippines interest rate seen

• Australian take on SGX merger

• Red shirts rally in Northeast

• Thai textiles rebound
Asean Analysis    21   March 2011 Advertise Your Brand
• Asean reacts to Japanese crisis Sponsor Our Events
Asean Stock Watch    21  March 2011
• A Wild Week in ASEAN
Global News Impacting Asia    17 November 2010
• Bank of America sees Asian inflation
• Lloyd’s increases insurance push in Malaysia
• Wells Fargo analyst on euro
• Obama’s visit to Asia

ASEAN NEWS UPDATES      Updated: 04 January 2011

• Women Shariah scholars see gender gap closing
• Bank Indonesia may hold key rate as inflation hits 7 percent

• Bursa Malaysia to revamp business rules
• Private property prices hit new high in Singapore
• Bangkok moves on mass transport
• Thai retailers are upbeat
• Rice exports likely to decline
• Vietnamese PM projects 10-year socioeconomic plan


This year in Thailand-what next?

04 January 2011
By David Swartzentruber      

It is commonplace in journalism to write two types of articles at the transition point between the year that has passed and the New Year. As this writer qualifies as an “old hand” in observing Thailand with a track record dating back 14 years, it is time take a shot at what may unfold in Thailand in 2011.

The first issue that can’t be answered is the health of Thailand’s beloved King Bhumibol, who is now 83 years old. He is the world's longest reigning monarch, but elaborate birthday celebrations in December failed to mask concern over his health. More

Home | About Us | Contact Us | Special Feature | Features | News | Magazine | Events | TV | Press Release | Advertise With us

| Terms of Use | Site Map | Privacy Policy  | DISCLAIMER |

Version 5.0
Copyright © 2006-2021 TIME INTERNATIONAL MANAGEMENT ENTERPRISES CO., LTD. All rights reserved.
Bangkok, Thailand