The Ministry of Energy and Mineral Resources (ESDM) has set the\nIndonesian Crude Price (ICP) at US$102.26 per barrel for March 2026.\nThis figure marks the highest level in the past year and significantly\nexceeds the 2026 State Revenue and Expenditure Budget (APBN) assumption\nof US$70 per barrel.<\/p>\n
The Director General of Oil and Gas at the Ministry of ESDM, Laode\nSulaeman, explained that the ICP has risen sharply compared to February\n2026. \u201cThe average ICP for March 2026 increased by US$33.47 per barrel,\nfrom US$68.79 to US$102.26 per barrel,\u201d he stated in a written release\non Friday, 17 April 2026.<\/p>\n
Laode attributed the price surge to escalating geopolitical conflicts\ninvolving the United States-Israel and Iran. These tensions are\ndisrupting global energy supplies, including distribution through the\nStrait of Hormuz, which handles around 20 percent of the world\u2019s oil\nsupply.<\/p>\n
Globally, benchmark oil prices also rose throughout March 2026. Brent\n(ICE) prices climbed to US$99.60 per barrel, West Texas Intermediate\n(WTI) to US$91.00 per barrel, and Dated Brent reached US$103.89 per\nbarrel. Meanwhile, the OPEC Basket even hit US$116.03 per barrel.<\/p>\n
This ICP increase is also putting pressure on the state budget.\nSecretary of the Coordinating Ministry for Economic Affairs, Susiwijono\nMoegiarso, noted that every US$1 per barrel rise adds approximately\nRp10.3 trillion to state expenditure for energy subsidies and\ncompensation. On the other hand, state revenues only increase by about\nRp3.6 trillion, resulting in a deficit of around Rp6.7 trillion.<\/p>\n
In light of these conditions, Minister of ESDM Bahlil Lahadalia\nstated that the government is reviewing adjustments to non-subsidised\nfuel prices. He said non-subsidised fuel prices follow market mechanisms\nin line with regulations.<\/p>\n
\u201cIt is calculated through adjustments. The country must also make\nadjustments; yesterday the price suddenly rose, so we are making\nadjustments,\u201d said Bahlil on Friday, 17 April 2026.<\/p>\n
Nevertheless, Bahlil assured that subsidised fuel prices will not\nrise. He stated that Pertalite prices will not increase until the end of\nthe year, in line with instructions from President Prabowo Subianto.<\/p>\n
A lecturer from the Faculty of Economics at Gadjah Mada University\n(UGM), Fahmy Radhi, said the global oil price increase will create a\ndilemma for the government. If subsidised fuel prices are not raised at\nthe consumer level, the APBN burden to cover the price differential will\nswell.<\/p>\n
However, if the government raises prices at the consumer level,\ninflation will occur. \u201cBecause the largest fuel consumers are Pertalite\nand diesel. So this is indeed a difficult choice for the government,\u201d he\nsaid.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/esdm-sets-icp-at-us-102-26-per-barrel-1776433853", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }