RAPBN 2024: Sri Mulyani Dizzy Oil Prices Still Dark, Safe Subsidy?

Minister of Finance (Menkeu) Sri Mulyani believes that oil prices in 2024 will still be colored by continued global uncertainty.

The Minister of Finance explained that this was reflected in the latest data released by the Energy International Agency (EIA) which said that brant oil was priced at 74.5 dollars per barrel. Meanwhile, Bloomberg and the World Bank launched a projection of 86 US dollars per barrel.

"The dynamics of oil prices are still influenced by geopolitical sentiment," he said at a working meeting of the 2024 RAPBN with Commission XI of the DPR on Monday, June 5.

The Minister of Finance explained that next year's economic growth will improve slightly from this year.

"This condition will make oil prices rise. Lately, oil prices also illustrate concerns about the outlook for the world economy," he said.

Therefore, the state treasurer still puts the assumption that the price in the 2024 RAPBN is 75 dollars to 85 dollars per barrel.

"Global supply is expected to increase mainly from OPEC," he added.

VOI noted that the government proposed a expenditure plan of IDR 3,215.7 trillion to IDR 3,476.2 trillion next year.

Of that amount, as much as Rp2,400.7 trillion-Rp2,631.2 trillion is the expenditure carried out by the central government. While the rest are transferred to the regions.

Just so you know, central government spending includes energy subsidies, be it fuel, electricity, or LPG gas subsidies.

Meanwhile, in the 2022 period, the government has increased the subsidy budget and fuel compensation by three times from Rp152.5 trillion to Rp502.4 trillion. This step was taken to reduce pressure on the community due to the surge in energy prices that occurred globally.