Jakarta \u2014 Finance Minister Purbaya Yudhi Sadewa expressed confidence\nthat Indonesia\u2019s benchmark crude price, the Indonesian Crude Price\n(ICP), will remain well below the government\u2019s macroeconomic assumptions\ndespite ongoing conflict between Iran and the United States-Israel\nalliance.<\/p>\n
Purbaya stated that the ICP realisation in February 2026 remained at\nUS$68.8 per barrel, substantially lower than the 2026 state budget\nassumption of US$70 per barrel. He estimated the year-to-date average\nICP through 11 March 2026 would settle at approximately US$68.4 per\nbarrel.<\/p>\n
\u201cUntil February, it was US$68.8 per barrel. Based on our estimates,\nthe average ICP realisation year to date through 11 March 2026 is around\nUS$68 per barrel,\u201d Purbaya said during a press conference on state\nbudget realisations at his office in Jakarta on Wednesday, 11 March\n2026.<\/p>\n
The finance minister explained that the crude price estimate already\naccounted for the spike in oil prices following the escalation of\ntensions between Iran and the United States-Israel alliance, including\ndisruptions to the Strait of Hormuz, one of the world\u2019s primary energy\ntrade routes.<\/p>\n
\u201cThis already incorporates the spike to US$112 that occurred\nrecently. It remains below the state budget assumption of US$70. This is\nwhy we still have fiscal space to anticipate price increases in the\nimplementation of the state budget,\u201d Purbaya said.<\/p>\n
With these factors considered, Purbaya expressed confidence that the\ngovernment\u2019s budget would not face severe pressure from deficits\nresulting from volatile global crude prices. However, he affirmed that\nthe government would remain vigilant in anticipating unforeseen risks\nthat could directly impact the budget.<\/p>\n
\u201cMany people asked yesterday whether the government would immediately\nrevise the state budget if oil prices reached US$100. The answer is no,\nbecause when we look at the average, it still stands at US$68,\u201d Purbaya\nstated.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/finance-minister-purbaya-predicts-indonesian-crude-price-to-remain-around-us-68-per-barrel-1773226325", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }