ID :
15947
Fri, 08/15/2008 - 13:49
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Shortlink :
https://www.oananews.org//node/15947
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GOVT SETS OIL PRICE ASSUMPTION AT US$100 PER BARREL FOR 2009 STATE BUDGET
Jakarta, Aug 15 (ANTARA) - The government has set an oil price assumption at US$100 a barrel for the 2009 state budget to be proposed to the House of Representatives (DPR), President Susilo Bambang Yudhoyono said.
"The government proposes the assumption of Indonesia's crude oil price level for 2009 at US$100 per barrel. This price is still within the price range approved by the DPR, namely between US$95-$120 per barrel," the president said in his State-of-the-Nation Address on the Draft 2009 State Budget and Financial Notes before the DPR's Plenary session here on Friday.
The president said that the selected average oil price at US$100 per barrel in 2009 is a reflection of the latest world oil price movements and the latest projection.
"Nevertheless, the government fells that it is important to still protect the state budget against the risk of an upward movements of oil price that can always happen, just as what we have experienced during the last 18 months," the head of state said.
According to the president, the price level was also accompanied by closing the risk of the oil price reaching higher to the level of US$130 per barrel.
"This is due to the fact that our state budget is far more vulnerable against the pressures of rising, rather than declining, oil price," the head of state told the DPR plenary session.
He said that the confidence towards the 2009 Draft State Budget could be maintained constantly throughout 2009, when the nation was engaged in a serious of general elections.
In the meantime, he added, the lifting of Indonesian crude oil in 2009 was anticipated to reach 950,000 barrels per day.
Yudhoyono said that the global oil price remained volatile and was extremely difficulty to predict. During the first semester of 2008, the oil price had jumped by over 40 percent to the level of US$147 per barrel.
"However, in July and early August of this year, it has dropped by 20 percent to become below US$115 per barrel," the president said.
"The government proposes the assumption of Indonesia's crude oil price level for 2009 at US$100 per barrel. This price is still within the price range approved by the DPR, namely between US$95-$120 per barrel," the president said in his State-of-the-Nation Address on the Draft 2009 State Budget and Financial Notes before the DPR's Plenary session here on Friday.
The president said that the selected average oil price at US$100 per barrel in 2009 is a reflection of the latest world oil price movements and the latest projection.
"Nevertheless, the government fells that it is important to still protect the state budget against the risk of an upward movements of oil price that can always happen, just as what we have experienced during the last 18 months," the head of state said.
According to the president, the price level was also accompanied by closing the risk of the oil price reaching higher to the level of US$130 per barrel.
"This is due to the fact that our state budget is far more vulnerable against the pressures of rising, rather than declining, oil price," the head of state told the DPR plenary session.
He said that the confidence towards the 2009 Draft State Budget could be maintained constantly throughout 2009, when the nation was engaged in a serious of general elections.
In the meantime, he added, the lifting of Indonesian crude oil in 2009 was anticipated to reach 950,000 barrels per day.
Yudhoyono said that the global oil price remained volatile and was extremely difficulty to predict. During the first semester of 2008, the oil price had jumped by over 40 percent to the level of US$147 per barrel.
"However, in July and early August of this year, it has dropped by 20 percent to become below US$115 per barrel," the president said.
