Middle East Economic Survey

VOL. XLVII

No 34

23-August-2004

BUDGETS AND REVENUES

Indonesia Revises Budget Oil Price To $34/B As Fuel Subsidies Squeeze Government Finances

The Indonesian Government has revised its budget oil price assumption for 2004 sharply upwards from $22/B to $34/B, in stark contrast to the Gulf oil producers, which resolutely cling to overly conservative price assumptions. The Indonesian Crude Price (ICP), set by the government for long-term sales contracts to the international...