The Government has set macroeconomic assumptions for 2018, such as economic growth at 5.4%, inflation 3.5%, the Rupiah Rp13,400 per U.S. dollar, interest rate (3-month) at 5.2%, Indonesia’s crude oil price (ICP) US$48 per barrel, oil lifting 800,000 barrels per day (bpd) and gas lifting 1.2 million barrels oil equivalent per day (boepd). But the world oil price now reaches US$57 per barrel, while the reference price of Indonesian crude price (ICP) for November 2017 was set at US$59.34 per barrel. Higher oil price would boost state revenues, but also boost the subsidy for electricity and LPG if the Government would not raise the tariff for electricity and LPG.
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