Weekly Digest: Will Crude Price Meltdown Heavily Affect State Budget?

Oil price falls
Summary

  • Oil prices will likely stay under US$ 30 per barrel until the end of the year following weak global demands due to coronavirus pandemic and the price war between Russia and Saudi, which floods the international market with abundant supplies.
  • The government has prepared the worst-case scenario, including a zero percent economic growth. In addition to the oil price, the crisis over the ongoing spread of the virus will slow down business activities, thereby suppressing the national economy.
  • With the average oil price at around US$ 30 per barrel by the end of the year, state revenues will suffer a decline by approximately Rp 139 trillion, with the deepest drop that may come from Non-Tax State Revenue (PNBP) at around Rp 92.4 trillion.

Register now and get free access.

If you want to get free access to our Daily Insights and Weekly Digest, please click "Sign up" button below. If you already have an account, please login.

What do subscribers receive?

As a subscriber, you'll receive daily insights, weekly business digests, and quarterly industrial reports.

What kind of pieces will i get?

In-depth reports on assumption and impact analysis, as well as update and trends mapping, written by our credible and experienced analysts.

And, there is something else…

Register now and get free access, click here to register. Feel free to contact us with any additional questions you have.