Indonesia seeing oil price of $20.5, production of 1.2 mln BPD in 2003

The government announced on Friday it was seeing world oil price averaging US$20.5 per barrel in 2003, down from the $22 per barrel in 2002.

It also expected the country?s oil production to average 1.2 million barrels per day (BPD) in 2003, President Megawati Sukarnoputri told the parliament. Oil production is targeted at 1.32 million barrels per day in the 2002 (January-December) state budget.

Indonesia, Asia?s only OPEC member, has a quota of 1.125 million BPD, for the cartel.

Meanwhile, the President also announced that the government would cut fuel and power subsidies in 2003 by 55 percent to Rp13.6 trillion to reduce sate budget deficit which is estimated at Rp26.3 trillion, or 1.3 percent of gross domestic product. The Rp13.6 trillion was based on the expectation that the exchange rate will average Rp8,700 per U.S. dollar in 2003.

Reduction in fuel and electricity subsidies started after Indonesia was hit by severe economic crisis in 1997. (*)