ID :
18143
Fri, 09/05/2008 - 12:52
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Shortlink :
https://www.oananews.org//node/18143
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MINISTER SAYS OIL PRICE DROP MAY REDUCE DEFICIT
Jakarta, Sept 5 (ANTARA) - The recent drop in the world price of oil to up to US$105 per barrel could reduce oil and electricity subsidy and lower the government's budget deficit than current projection of 1.6 to 1.7 percent or around Rp82.3 trillion.
Finance Minister Sri Mulyani said after a coordination meeting with central bank officials here on Thursday said the current projected deficit of 1.6 to 1.7 percent was made based on the annual average price of Indonesian crude of US$130 per barrel.
"Until August 2008 the average price of Indonesian crude was around US$122 per barrel," she said.
According to her if the average price of Indonesian crude drops, the oil and electricity subsidy of around Rp234 trillion will be down. "In the case of oil subsidy the drop will depend upon the consumption rate while in the case of electricity subsidy it depends upon its gross volume. If the basis is the price used by the state electricity company PT PLN or for fuel oil realization of subsidy may be much lower," she said.
She however also warned that the drop in Indonesian crude price would automatically be followed by a reduction in tax and non-tax state income from gas and oil and other natural resources. "Only the net will remain positive," she said.
Finance Minister Sri Mulyani said after a coordination meeting with central bank officials here on Thursday said the current projected deficit of 1.6 to 1.7 percent was made based on the annual average price of Indonesian crude of US$130 per barrel.
"Until August 2008 the average price of Indonesian crude was around US$122 per barrel," she said.
According to her if the average price of Indonesian crude drops, the oil and electricity subsidy of around Rp234 trillion will be down. "In the case of oil subsidy the drop will depend upon the consumption rate while in the case of electricity subsidy it depends upon its gross volume. If the basis is the price used by the state electricity company PT PLN or for fuel oil realization of subsidy may be much lower," she said.
She however also warned that the drop in Indonesian crude price would automatically be followed by a reduction in tax and non-tax state income from gas and oil and other natural resources. "Only the net will remain positive," she said.
