Govt reviewing ICP formula

The government is the process of evaluating the existing Indonesian basket price formula, known as ICP, in order to find the most suitable for Indonesia.

At present, the ICP is calculated based on the RIM and Platts reports with each of the report contributing 50 percent to the calculation.

Director General of Oil and Gas IGN Wiratmaja said during the working meeting with the House of Representatives? Commission VII which oversees energy affairs that the evaluation does not mean the ICP formula will be changed. If the existing formula is considered the best for the country, the government will not change it.

The ICP formula is routinely evaluated in view of the prevailing global oil market situation. The evaluation is carried out by the Ministry of Finance and the Ministry of Energy and Mineral Resources (MEMR) based on a proposal made the Oil Price Team comprising officials from the MEMR, Ministry of Finance, SKK Migas, BPKP (state comptroller) and state owned oil and gas firm PT Pertamina (Persero).

The ICP Is not only used to calculate the state revenue but also the price of crude exports and imports

Editing by Johannes Simbolon