Crude price assumption fixed at $61 per barrel

The budgetary commissions of the House of Representatives and the government have agreed to change several macro-economic assumptions in the 2009 revised state budget in line with signs of recovery in the world economy, Energy and Mineral Resources Ministry reported Thursday.

The assumption price of Indonesian crude oil (ICP) was revised upwards to $61 per barrel from between $40 and $60 per barrel, while oil lifting target was raised to 960,000 per barrels .

The average ICP between January to May 15 reached $47.66 per barrel.

In the revised state budget, the subsidized fuel quota is set at 38.94 million kiloliters. The amount consists of 20.63 million kiloliters of Premium gasoline, 5.80 million kiloliters of kerosene and 12.50 million kiloliters of diesel fuel.

Both the House budgetary commission and the government agreed to revise the economic growth assumption to 4.3 percent, inflation rate to 4.5 percent, rupiah exchange rate to Rp 10,500 per US dollar and Bank Indonesia promissory rate to 7.5 percent per annum.

The state revenues from oil and gas sector were also raised to Rp 183.06 trillion. In line with the rise in the revenue target, the House asked the government to speed up the issuance of the regulation on cost items that are reimbursable under the cost recovery scheme.

According to the House commission, the implementation of the new regulation would be able to reduce the government?s cost recovery spending for oil and gas contractors.

The volume of the subsidized oil and liquefied petroleum gas (LPG) sales remains at the original level. The energy subsidy is fixed at Rp 99.938 trillion. The subsidy for fuel, biofuel and LPG account amounts to Rp 52.392 trillion, with the remaining Rp 47.54 trillion being allocated for electricity. (*)