SBY CAMPAIGNER: PRESENT OIL PRICE YET TO THREAT BUDGET

Jakarta, July 3 (ANTARA) - Member of SBY-Boediono's national campaign team, Chatib Basri said the increase in the crude price to US$61 per barrel had not yet posed a threat to the state budget.

"I see the state budget is still safe. The increase in oil price also raises subsidy but the rupiah appreciation from Rp11,000 to Rp10,000 per US dollar has also reduced the deficit," Basri said here on Thursday.

Besides, he said the average price of Indonesia's crude was still below the assumption set at the state budget at US$45 per barrel.

"The increase in the world crude price has happened since three weeks ago so that it has not yet raised the average price significantly," he said.

Previously, Finance Minister Sri Mulyani Indrawati said that electricity and fuel oil subsidies which were predicted earlier at Rp67 trillion rose to Rp102.5 trillion as a result of the increase in Indonesia's crude price to U$61 per barrel.

The amount of subsidies prepared for fuel oil at Rp24.5 trillion is predicted to rise to Rp54.3 trillion or an increase of 221.5 percent.

In the meantime, electricity subsidy which was earlier prepared at Rp13.3 42.5 trillion is expected to go up 13.5 percent to Rp48.2 trillion.

Last month, PLN President Director Fahmi Mochtar had proposed additional subsidy in an effort to overcome a shortage of funds for the installation of new power connections.

He said that PLN only had Rp1 trillion in funds for the installations of new power connections, while the need reached Rp3 trillion-Rp3.5 trillion so that additional subsidy was needed.

Director General for Electricity and Energy Utilization Jacobus Purwono said earlier that it was quite possible for the government to provide PLN with extra funding this fiscal year for the installation of new power connections.

"But the additional subsidy will be disbursed following an audit by the Supreme Audit Board (BPK)", he said.*