Bahlil Proposes ICP as High as US $70-95 Per Barrel in the 2027 Budget English: Bahlil Proposes ICP as High as US $70-95 Per Barrel in the 2027 Budget

JAKARTA - Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia proposed an assumption of the Indonesian crude oil price or Indonesian Crude Price or ICP in the Draft State Budget (RAPBN) 2027 of 70 to 95 US dollars per barrel.

Bahlil said that this wide price range was a form of anticipation of global geopolitical dynamics that would affect energy prices.

"In 2026, we will hammer the figure with 70 US dollars. But in 2027, the range is a minimum of 70 US dollars and a maximum of 95 US dollars, while we see the development of the dynamics later until August, what number we will put," said Bahlil in a working meeting with Commission XII of the DPR RI, Monday, June 15.

Not only ICP, the Chairman of the Golkar Party also targets the lifting of oil and natural gas (migas) in 2027 of 1.536 million to 1.592 million barrels of oil equivalent per day (BOEPD).

He detailed, the estimate consists of lifting crude oil and condensate of 602,000-615,000 barrels per day (BOPD), as well as lifting natural gas of 934,000-977,000 BOEPD.

The former Minister of Investment also said that the target for lifting oil could still be discussed to find room for increased production.

"Well, the lifting for oil is in 2027, ranging from 602,000 to 615,000. For this portion, we can discuss, where is the more room for us to talk in the context of increasing the lifting capacity of all KKKS in our country," he said.

Furthermore, he added, in the 2027 State Budget, his party also proposed a subsidized fuel volume of 19.343 million to 19.561 million kiloliters (KL), consisting of kerosene 543,000-561,000 KL and solar 18.8 million-19 million KL.

Meanwhile, the volume of 3 kilogram (kg) cylinder liquefied petroleum gas (LPG) is pegged at 8 million metric tons.

Then, the fixed subsidy for diesel oil is planned at Rp1,000 per liter, while the electricity subsidy budget is estimated at Rp113.45 trillion to Rp 122.83 trillion.

"That is roughly related to our macro assumptions in the oil and gas sector. Again, I say that this was conveyed by the government, which was read by the President, while determining geopolitical dynamics, it will be in July and August, we will be able to get a somewhat more precise figure," said Bahlil.