Govt proposes revised ICP assumption to the House
Monday, March 12 2012 - 07:10 AM WIB
The government has proposed new Indonesian Crude Price (ICP) assumption of US$105 per barrel for the revised 2012 State Budget being discussed by the House of Representative (DPR) Commission VII with the government.
Director General for Oil and Gas at the Energy and Mineral Resources Ministry, Evita Legowo, made the statement during a hearing with the House commission on Monday.
The proposed new assumption is higher compared to early assumption of US$90 per barrel. The adjustment was to make the assumption level to be more in line with the projected oil price.
She said the new price assumption took into account the benchmark international oil prices such as West Texas Intermidate (WTI), short-term energy outlook (STEO), pooling of analysts by Reuters on February 27, 2012, Brent and Center for Global Energy Studies (CEGS). These institutions projected oil price for 2012 to move within range of US$80 to as high as US$140 per barrel.
The ICP assumption is needed by the government to set revenues projections.
Under the original 2012 State Budget, the government assumed the following economic indicators:
GDP growth: 6.7 percent
Inflation: 5.3 percent
Rupiah rate to the US dollar: Rp8,800
Oil Price: US$90 per barrel
Oil lifting per day : 950,000
Editing by Roffie Kurniawan