Govt may revise ICP price assumption

The government may revise the Indonesia Crude Price (ICP) reference in the 2011 state budget because the rise in the crude price in the world has made it no longer relevant.

Coordinating Minister for the Economy Hatta Rajasa said in Jakarta on Tuesday that the ICP reference would be probably be revised to between US$90 and $95 per barrel from the current level of $80 per barrel.

?The revision is needed to ensure that it will be in line with the crude price trend,? he said, adding that the government might also revise the assumption of Indonesian oil lifting (net production) and rupiah exchange rate.

He said that the oil production reference might be lowered from the current level of 970,000 barrels per day because with the current condition in oil and gas operations, it would be difficult to meet the target.

Meanwhile Bambang Brodjonegoro, the chief of the Finance Ministry?s Fiscal Policy Office said that rupiah exchange rate against the US dollar might be also revised because its persistent appreciation has made the exchange rate assumption in the state budget no longer relevant. He said that the rupiah exchange rate could be revised to Rp 9,000 per dollar from Rp 9,250 at present. (*)