War Heats Up, Government Watches Oil & Gas Prices News – 4 hours ago

Jakarta, CNBC Indonesia – The Ministry of Energy and Mineral Resources (ESDM) continues to be wary of potential increases in oil and natural gas (oil and gas) prices. This is in line with the outbreak of the war between Palestine and Israel which is currently still continuing.

Secretary General of the Ministry of Energy and Mineral Resources, Dadan Kusdiana, said that his party continues to monitor movements in global oil and gas prices which have the potential to impact domestic fuel (BBM) and LPG prices. “We continue to monitor and monitor every day. We monitor oil prices including gas,” said Dadan when met at the Ministry of Energy and Mineral Resources Building, Monday (23/10/2023).

Apart from monitoring movements in global oil and gas commodity prices which have the potential to increase, the government, said Dadan, is also continuing to make efforts to ensure that the availability of oil and gas supplies in the country is safe and fulfilled.

“We will ensure that the supply does not decrease. After that, the impact will be if in the APBN our ICP is US$ 90 per barrel, right? In terms of ICP, our basis is still OK,” added Dadan.

Previously, President Joko Widodo said he was wary of the potential for rising world crude oil prices which would impact domestic fuel oil (BBM) selling prices. This is in line with concerns about global supply disruption due to the protracted conflict between the Palestinian Hamas group and Israel.

Jokowi explained that the challenges that future leaders will face will be increasingly complex. The reason is that the Russian-Ukrainian conflict has not yet ended, which has resulted in a food crisis, now the world is haunted by concerns about soaring energy prices as a result of the Palestinian-Israeli war.

“Food prices have risen because of the war in Ukraine. Energy prices could later rise because of the war between Palestine and Israel,” said Jokowi when opening the VI Projo National Working Meeting (Rakernas) as quoted on Monday (16/10/2023) .

According to Jokowi, the increase in global energy commodity prices will certainly have an impact on price adjustments for domestic fuel products, both non-subsidized fuel such as Pertamax and subsidized fuel such as Pertalite.

“Energy prices mean Pertamax gasoline, Pertalite. I don’t want to scare you, but it could happen that if the war doesn’t end, global fuel prices will definitely rise,” he said.

Apart from energy prices, Jokowi also warned of new threats such as climate change which are already real and felt by all countries in the world, including Indonesia. For example, the El Nino phenomenon or prolonged drought.

“Yesterday, for about 3-4 months, the heat was so intense throughout the world, most of us were hit by El Nino. It’s not just hot, it affects our food production,” he said.

[Gambas:Video CNBC]

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