VOL. XLI

No. 15

13-April-1998

OPEC

Declining Oil Prices And Budget Revenues

In Indonesia, the government has revised downwards the oil price assumption inthe 1998-99 budget to $14.50/B from the previous $17.00/B. This compares with $16.50/B inthe 1997-98 budget. Some analysts maintain that the lower price may still not beattainable in the current fiscal year. The Indonesian economy this year is expected tocontract by 4-5% with inflation running at 17%, according to recent official estimates.

In ...