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Sri Mulyani: Global oil prices are still volatile, although there is a decline

Jakarta, The Indonesia Post – Minister of Finance (Menkeu) Sri Mulyani Indrawati said oil prices at the global level will still fluctuate, although currently there has been a decline.

“Now we see the oil price dropping slightly, but we are not sure when it will go up or whether it will go down and continue to fall again,” said Minister of Finance Sri Mulyani at the Bloomberg Recovery and Resilience event in Jakarta, Monday.

According to Sri Mulyani, the government’s decision to increase the price of fuel oil (BBM) by an average of 30 percent is a quite appropriate step considering the world oil price has increased to reach 100 US dollars per barrel.

She said the increase in fuel prices would be able to secure a budget that was already too depressed if it had to be added to provide subsidies.

“I think the steps we have taken to adjust oil prices last week will be enough to at least secure the budget,” Sri Mulyani said.

However, she continued, the government finally provided additional social assistance in order to maintain people’s purchasing power in the midst of the potential increase in various commodity prices due to rising fuel prices.

This step is in line with the government’s policy focus, which is to maintain the momentum of recovery through maintaining people’s purchasing power, while maintaining a safe, credible and sustainable budget in the medium to long term.

In this case, she said, the government has carried out three goals at once, namely protecting the people because they are still providing subsidies, maintaining the economic recovery which is expected to continue in the third quarter as well as saving and creating sustainability and budget credibility. (mhn/bbs)

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