Global oil price hike may have positive impact on state revenues

Jakarta - Finance Minister Sri Mulyani Indrawati has given the assurance that the successive oil price hike in 2017 and 2018 may have a positive impact on state revenues.

"If the balanced oil prices are above US$50 per barrel, then state revenues will increase accordingly," she said in a press briefing here on Wednesday.

The oil price hike throughout 2017 was the result of higher global commodity prices as a whole, she pointed out.

She said the oil price hike has raised state revenues from income tax and non-tax state revenues in the oil and gas sector.

Every dollar rise in the oil price assumed in the state budget may increase state revenues by Rp0.7 trillion, she said.

"State receipts from non-tax state revenues and oil and gas taxes will increase if (the oil price) is above the assumed price of US$48 per barrel," she said.

The Indonesian Crude Price (ICP) averaged US$50.3 per barrel in the year to December 15, 2017, slightly higher than US$48 per barrel assumed in the revised 2017 state budget.

The oil price hike raised state revenues from income tax in the oil and gas sector to Rp49.6 trillion, exceeding the government-set target of Rp41.77 trillion.

In addition, non-tax state receipts in the oil and gas sector also increased to Rp72.9 trillion, higher than the target of Rp72.2 trillion for this year.

The increase in non-tax state receipts also has helped narrow down the 2017 state budget deficit projected at 2.67 percent of the national gross domestic product at the end of this year.

The assumed ICP for 2018 is expected to remain unchanged at US$48 per barrel.

Source: Antara News

Related posts