Members Of Commission VII DPR Ask The Government To Control ICP Prices Amid Global Uncertainty

Illustration. (Photo: Doc. Antara)

JAKARTA - Member of Commission VII DPR RI Diah Nurwitasari asked the government to continue to monitor the price of Indonesian crude oil or the Indonesian Crude Price (ICP) which is pegged in the 2023 RAPBN at 90 US dollars per barrel. According to Diah, in the midst of global conflict, ICP is still very vulnerable to increase.

"I think the ICP benchmark submitted by the President needs to be carefully monitored, lest the ICP rise drastically and become a new burden for our state budget," he said in an official statement, Saturday, August 20.

According to Diah, world crude oil prices have always been a source of worry for the world economy. The Russian-Ukrainian war conditions that are still ongoing are a factor that makes the ICP continue to increase.

As for oil and gas lifting, he urged the government to optimize this lifting while at the same time encouraging the use of new energy and renewable energy as future targets (EBET).

While being asked about the subsidy budget in the RAPBN of IDR 502 trillion, the legislator from the West Java II electoral district replied that subsidies are the government's duty to budget them in the APBN with the aim of maintaining economic stability.

"This is part of the government's duty to maintain the stability of the country's economy. Do not let the subsidies that have taken place immediately be abolished without a more comprehensive policy discussion," said Diah.

The comprehensive policy in question is how effective and efficient the distribution of subsidies is, supervision, and law enforcement related to subsidies, as well as alternatives that can reduce the broad impact of the fuel price hike. He also welcomed the surplus of the state budget in the first semester of 2022 which was a breath of fresh air for the increase in state income.

Previously in the 2023 RAPBN, the government had set the Indonesian Crude Price (ICP) at 90 United States (US) dollars per barrel. This figure is an increase compared to the 2022 state budget which is 63 US dollars per barrel.

"The price of Indonesian crude oil ICP is estimated to be around US$ 90 per barrel," said President Joko Widodo when delivering his introductory Speech on the 2023 RAPBN and its Financial Note at the Plenary Meeting, Opening of the First Session at the DPR Plenary Building, Senayan, Jakarta, Tuesday, August 16. .

The benchmark ICP figure is expected to bring new optimism in energy management going forward.