Oil Prices Rise, Bahlil Says Subsidies Potentially Follow

Illustration. (Photo: Dok. Antara)

JAKARTA - Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia revealed that the war between the United States (US) and Israel against Iran has pushed up the world oil price.

With this, he said, the burden of subsidies this year is expected to increase.

Bahlil added that the assumption of the Indonesian crude oil price or Indonesian Crude Price (ICP) in the state budget was set at 70 US dollars per barrel, but currently the world oil price has increased to a range of 78 US dollars to 80 US dollars per barrel.

"This is what we have to be careful about, this has an impact on the increase in subsidies that will be borne by the state," Bahlil told the media at the Ministry of Energy and Mineral Resources Building, Tuesday, March 3.

He added, currently Indonesia produces around 600,000 barrels of oil, so there is a difference between lifting and imported and subsidized oil.

Bahlil also said President Prabowo ordered a careful calculation.

"Well, this difference is what we are calculating. The President's instructions to us are that we must be very careful to calculate everything while ensuring the availability of domestic fuel to provide certainty to the service to our community," explained Bahlil.

Bahlil also emphasized that until now there has been no decision from the government to increase the price of subsidized fuel in Indonesia.

"If it is subsidized, as long as there is no new policy from the government, the price will remain the same. Including with solar subsidies, until we had a meeting, there was none. So be safe," said Bahlil.