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.


 
UBUD WRITERS & READERS FESTIVAL
 
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
Weíre Going to Change the World!
Young People Invited to Joining Baliís Global Initiatives Networking Conference at Canggu Community School October 3-5, 2014
(9/20/2014)
Flying High and Fancy with Garuda
Garuda Indonesia Named as Best Passenger Experience in Asia Pacific Region
(9/20/2014)
Chicago Lovers Come Clean in Bali
Bali Police Say Tommy Schaefer and Heather Mack Confess to Roles in Murder of Chicago Socialite Sheila von Weise Mack
(9/20/2014)
Factory Direct
Bali Police Raid Two Narcotics Factories in Denpasar and Buleleng
(9/20/2014)
Cleared for More Landing?
Deputy-Governor of Bali Calls for Extra Runway at Islandís Airport
(9/20/2014)
Longer Hauls; Lower Fares
Indonesia AirAsia Targets Offering Long-Haul Low-Cost Flights to Australia by End of 2014
(9/20/2014)
An Enigma of Non-Arrival
Nobel Laureate V.S. Naipual Removed from Program for 11th Ubud Writers and Readers Festival
(9/20/2014)
Happy Landings Galore
Operator of Baliís New Airport Claims it to be the Most Beautiful in the World
(9/20/2014)
When the Past is Pasta
Uma Cucina at Uma by Como Ubud Celebrates its First Anniversary with Three Italian Culinary Events
(9/20/2014)
They Have to be Carefully Taught
Bali Officials from Badung Regency Allow Illegal Villas in North Kuta to Continue Operations
(9/20/2014)
Is the Under Over?
Plans for Pedestrian Underpass at Ngurah Rai Statue Park Now in Doubt
(9/20/2014)
Merpati at an Impasse
Out of Cash with No Assets Left to Sell,ia Merpati Airlines Beyond Redemption?
(9/20/2014)
All [News]!
 
Tourism and Transport Tourism Agents