Home ECONOMY Ministry of Energy and Mineral Resources Admit Hamas-Israel War Affects Weakening Indonesian Crude Oil Prices

Ministry of Energy and Mineral Resources Admit Hamas-Israel War Affects Weakening Indonesian Crude Oil Prices

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Ministry of Energy and Mineral Resources Admit Hamas-Israel War Affects Weakening Indonesian Crude Oil Prices

JAKARTA, Timerilis.com – The Ministry of Energy and Mineral Resources (ESDM) admits that the Hamas-Israel war has affected the price of Indonesian crude oil.

Director General (Dirjen) of Oil and Gas (Migas) of the Ministry of Energy and Mineral Resources, Tutuka Ariadji, said that logistics and other problems have affected oil prices. However, this is not yet too significant.

“But if this goes on long enough, I think it will affect oil prices, including the price of Indonesian crude oil (ICP). ICP has two things that we see, first, it will affect our crude oil and our fuel prices,” said Tutuka, on Tuesday (17/10/2023).

According to him, this is because Indonesia currently imports crude oil and fuel.

If likened in presentation to the amount of crude oil imports that are put into existing refineries in Indonesia, approximately the same amount as the amount of fuel imports from Indonesian refineries.

“So if oil prices rise, it is beneficial upstream, but downstream is also affected. So if it is too high around 100 it is less profitable for the country. But if it is still the current figures it is still quite good,” he explained.

He added that the Pertalite fuel price policy, which has the status of Special Assignment Fuel Type (JBKP), was the government’s decision.

“(So) from Mr. President, the minister to determine it. So it is another thing that is used or aimed at helping the community so that it remains in the economy, so it is a different thing,” he said.