Oil Supply Is Still Labil, Sri Mulyani Chooses To Increase ICP In The 2024 RAPBN

JAKARTA - The government through the Minister of Finance (Menkeu) Sri Mulyani is known to have received approval from the DPR's Working Committee (Panja A) to raise the assumption that the price of Indonesian oil (Indonesia Crude Price/ICP) from 80 US dollars to 82 US dollars per barrel in the 2024 State Budget Draft.

In his statement, the Minister of Finance outlined a number of basic assumptions that made the government take the initiative to raise the ICP.

Oil prices have risen in recent weeks. Even the current assumption is around 90 dollars per barrel. This is because both Saudi Arabia and Russia have a commitment to withhold or reduce production. Even this morning the news will be detained (production) until December," he said at a working meeting with the DPR's Budget Agency (Banggar), Thursday, September 7.

According to the Minister of Finance, this situation then pushed for an increase in prices. Moreover, countries in four seasons are heading for a winter period.

Furthermore, the Minister of Finance revealed that the United States' policy in securing national energy supply made the supply side more depressed.

"We also heard the news (US President Joe Biden) canceled oil exploration in Alaska. This will certainly lead to the dynamics of his supply side," he stressed.

Meanwhile, the US economic demand factor is still filled with uncertainty due to the choice to lower interest rates or maintain domestic growth.

"Then the third-largest economy in the world, China, is in the form of returning the economy which now tends to weaken," he said.

"So these factors determine the dynamics of oil prices, both supply-demand and future economic prospects," said Minister of Finance Sri Mulyani.