The use of ICP formula extended until June, 2005

The government has agreed to further extend the existing formula in determining the Indonesian Crude Price (ICP) index for another six months, Bisnis Indonesia reported on Thursday.

Minister of Energy and Mineral Resources Purnomo Yusgiantoro said in Jakarta on Wednesday that the decision to use the existing ICP formula for the period of January to June, next year, was based on the recommendation from the government's Team for Crude Oil Prices.

"Based on the team's evaluation, the current ICP formula is more responsive to the price fluctuation, and more importantly it reflects the actual price in the market," the minister said.

According to Purnomo, the ICP formula is based on the average price of the Indonesian crude prices published by the Asian Petroleum Price Index (APPI), RIM and Platt's. The existing ICP formula was first introduced in January, 2004 for a six-month period. The formula was then extended until December 2004. (*)