Minister Of Energy And Mineral Resources Prepares Worst Scenario If ICP Reaches 200 US Dollars Per Barrel

Minister of Energy and Mineral Resources Arifin Tasrif. (Photo: Antara)

JAKARTA - Minister of Energy and Mineral Resources Arifin Tasrif admitted that he had prepared a worst-case scenario if world oil prices continued to soar to touch the figure of 200 US dollars per barrel.

He estimates that energy subsidies could reach IDR 1,000 trillion if this happens.

Meanwhile, the Ministry of Energy and Mineral Resources has set the Indonesian Crude Price (ICP) to increase from US$109.61 per barrel to US$117.62 per barrel in June 2022.

"In the worst case, it could be 200 dollars per barrel. If it becomes 200 dollars per barrel, just multiply it by the current energy subsidy", he said in Jakarta, Thursday, July 28.

For information, currently, the amount of subsidies and energy compensation for 2022 is allocated at IDR 502.4 trillion.

Arifin added, that for this reason, his party seeks to limit the consumption of subsidized diesel fuel and assigned fuel such as Pertalite by revising Presidential Regulation (Perpres) No. 191 of 2014 concerning the Supply, Distribution, and Retail Selling Price of Oil Fuel.

Arifin targets the revision of Presidential Regulation No. 191/2014 to be completed next August.

"God willing (August), we have to work fast. The items are already there", he said.

Regarding the proposed item, Arifin is still reluctant to open his voice. The reason is that the government is currently focusing on following up on the initiative permits that have been issued.

"The initiative permit has been issued, now we will follow up to make improvements from what was previously adapted to the existing situation", he continued.

The government is currently working on a revision of Presidential Decree No. 191 of 2014 concerning the Supply, Distribution, and Retail Selling Price of Fuel Oil (BBM), which regulates restrictions on recipients of subsidized fuel and assignments.

Through the revision of the Presidential Regulation, the government hopes that subsidized diesel fuel and Pertalite will be more targeted.