Close
Bali Discovery Tours: Homepage
Bali Hotels, Bali Villas and Bali News from balidiscovery.com
Home Bali Contact Bali Practicalities Bali News Bali Services Bali Transportation Bali Sports Bali Excursions Bali Villas Bali Hotels
Home · News · High Oil Prices May Spell Problems Ahead
Bali Hotels, Bali Villas and Bali News from balidiscovery.com
Bali Hotels
Bali Villas
Special Deals!
Packages
MICE Handling
Bali Excursions
Culinary - Dining
Guided Tour
Bali Spas
Bali Sports
Diving
Golf
Bali Transportation
Car Rental - Selft Drive
Private Jet Charter
Bali News
Bali Services
Bali Practicalities
Bali Contact
Bali Career
Home
 
Bali Update
Subscribe to our free weekly newsletter!
 
PATA header
PATA Gold Award 2007
Bali Update
PATA Gold Award Winner 2007
 
Bali Contact
Bali Discovery Tours
Komplek Pertokoan
Sanur Raya No. 27
Jl. By Pass Ngurah Rai,
Sanur, Bali, Indonesia

Tel:
++62 361 286 283

Fax:
++62 361 286 284

U.S.A. Fax:(toll free)
1-800-506-8633

U.K. Fax:
++44-20-7000-1235

Australian Fax:
++61-2-94750419

24h:
++62 812 3819724

Bali Discovery

SITE PATA ASITA
Bali News

High Oil Prices May Spell Problems Ahead

Record High Oil Prices May Have Devastating Impact on Indonesia's National Economy in the Short to Medium Term.


Bali News: High Oil Prices May Spell Problems Ahead
Click Image to Enlarge

(9/6/2004)

Independent of the results of the coming Presidential elections on September 20, Indonesia's national economy faces a number of major stumbling blocks in the months ahead resulting from current record levels being paid on world markets for crude oil.

With oil prices approaching US$ 50 per barrel, the effects on the Indonesian economy could prove devastating. The State Budget for 2005 was calculated on an assumed crude oil price of US$ 24 per barrel, a price now seen as unrealistically low. As a result, a growing number of economic experts are calling for an urgent reforecast of the budget based on a projected US$ 35 a barrel.

The higher and more realistic assumed price of crude oil would recast the compete budget. Revenues earned from oil exports would increase while state expenditures in the form of fuel subsidies, electrical energy supports, and allocations paid from the central government to the provinces would all undergo significant increases.

For instance, a recalculation of fuel subsidies based on an increase of a presumed price of oil from US$ 24 to US$ 36 a barrel would increase the cost of government-provided fuel subsidies by nearly 300%, costing the Government Rp. 60 trillion in 2005 (approximately US$ 6.6 billion). Similarly, electrical energy subsidies worth Rp. 3.4 trillion (approximately US$ 377 million) in the 2005 budget would triple with projections based on higher crude oil prices.

Whether the State Budget is formally recalculated or not will make little difference in the massive deficit looming ahead and described by some economist as a waiting "time bomb."The Country has few options available in meeting the challenge of the deficit certain to grow in the current situation. Cutting fuel subsidies is widely considered politically unviable. While the Government will almost certainly be forced to increase taxes, the only short term solution for Indonesia is to increase its already large and burdensome national debt. Indonesia's foreign debit now stands at US$ 68 billion and domestic debit at more than US$ 70 billion.


© Bali Discovery Tours. Articles may be quoted and reproduced if attributed to http://www.balidiscovery.com.


 
Bali News by Bali Update
Subscribe to the Bali Update
Receive the latest news from Bali by email!



Our [Privacy Statement] explains how we handle the data you are providing.

 
Bali News by Bali Update
Explore the Archive of the Bali Update
Find related articles in our news archive!




or try to use Google Search :

Home · Bali Hotels · Bali Villas · Bali Excursions · Bali Sports · Bali News · Site Map · RSS

Bali News: More News
And the Winner Is . . . .
Joko Widodo and Jusuf Kalla Declared Winners of Presidential and Vice-Presidential Race. Prabowo Subianto Takes Legal Steps to Challenge Election Results.
(7/25/2014)
If this is Tuesday, it Must be Bali!
Design Expert Explores Ways to Enforce Rules Mandating Balinese Style Architecture and Finishes in all Building Projects
(7/25/2014)
Endless Summer
Australian Man Found Dead in Kuta Hotel Room
(7/25/2014)
Red Glare on Baliís East Coast
Fire Destroys One Villa at Amankila
(7/25/2014)
When High Season Becomes Shoulder Season
Hotels and Villas in Bali Claim Occupancies for July-August 2014 are Down by as much as 15%
(7/25/2014)
Holding Meetings in Bali to Steal Funds
Foreign Affair Official Sentenced to Prison for Corruption of International Meeting Funds dedicated to Bali
(7/25/2014)
Cooking in the Middle Kingdom
St. Regis Kayuputi Culinary Team Represented Indonesia at Bocuse díOr Asia Pacific in Shanghai
(7/25/2014)
Pausing for a 'Cuppa' Before Take-Off
Government Does Surprise Drug Screening of Domestic Pilots at Bali Airport
(7/25/2014)
Have You Been to Bali, Too??
Bali by the Numbers: Bali on Pat to Welcome 3.75 million Foreign Visitors in 2014
(7/25/2014)
A 15-year Impasse
French Drug Courier Gets 15 Year Prison Sentence in Bali
(7/25/2014)
Rising Costs Dent Garudaís Finances
Garuda Loses US$211 million in First Half of 2014
(7/25/2014)
Mellow is the Night in Ubud
Jazz musician Deborah Carter set to perform at Uma by COMO in Ubud on August 10, 2014
(7/25/2014)
All [News]!
 
Tourism and Transport Tourism Agents