Oil Prices Continue To Be Mobilized, Global Recession Is Called A Concentration Factor Next Year

Illustration (Photo: Doc. Antara)

JAKARTA - Minister of Finance (Menkeu) Sri Mulyani said that the global situation was still filled with continued uncertainty so that the direction of the economy in the future must be watched out for. According to her, one of the important indicators of this condition is the fluctuation of world oil prices.

He said, although the current pressure has begun to subside, the trend of commodity prices tends to remain at a high level. Meanwhile, one of the determining factors in the future is the risk of a widespread recession in several countries.

"Advanced countries such as America and Europe have the potential to face a strong recession due to current high inflation, even the highest in the last 40 years," he said while giving a presentation at the National Economic Facilities forum, Wednesday, September 7.

This condition was then responded by the central bank with tightening liquidity which resulted in an increase in the benchmark interest rate. In fact, in the latest geopolitical developments, oil commodities are one of the political tools in suppressing other countries.

"So oil has now become an instrument of war (as a result of the Russia-Ukraine conflict)," he stressed.

The Minister of Finance added that the government itself hopes that oil price stability can be achieved in the range of 90 dollars per barrel after peaking up to 126 dollars per barrel.

"As long as the war occurs, there will continue to be supply disruptions to the global market. This is what we must anticipate," he said.

According to the editorial notes, the price of Indonesian crude price (ICP) in the 2022 State Budget Law is 63 dollars per barrel. This figure then increased to 100 dollars per barrel in line with the surge in world crude oil bands.

Meanwhile, in the 2023 State Budget Bill proposed by President Jokowi on August 16, an assumption of 90 dollars per barrel for next year is set.