REPUBLIKA.CO.ID, JAKARTA -- Commission VII of House of Representatives and Ministry of Energy and Mineral Resources (ESDM) agreed on macro basic assumptions of Draft Budget 2016 for Indonesian Crude Oil (ICP) prices at 50 US dollars per barrel.

Chairman of Commission VII, Kardaya Warnika, considered that in the next two years, the price of crude oil will be difficult to move up. OPEC acknowledged, the prices in the range of 50 dollars will last in the next two years.

"Well at least price of crude oil will be difficult to increase in one or two years. During the discussion yesterday the price is 40 to 45 US dollars," said Kardaya, Thursday (17/9).

Minister of Energy and Mineral Resources, Sudirman Said, said in determining the ICP price, there were several factors that affected the world crude oil price. First, the government was aware that global economic growth will still slowdown, especially in the major crude oil consuming countries, namely the US and China.

Second, the government saw that the world oil market still will oversupply due to the increase in the US oil shale production and an increase in the supply of crude oil from Iran. Third, growth of demand would occur in emerging countries.

The fourth, the high rate of increase in crude oil stocks, especially in the US, Japan, and China. The government then asked for the balance and analysis of experts on Indonesian crude oil price in 2016.

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