Writing High Cost Economy In Indonesia

Why do oil prices in indonesia are more expensive

The Government set the price of crude oil formula Indonesia (ICP) is higher than the world price of oil. It is used to boost the quality of petroleum indonesia in the eyes of the world. "This kind of pricing because the quality is better than Indonesia oil international oil." said Deputy Controller Implementing Agencies Operating business activities Upstream Oil and Gas Rudi Rubiandini, Tuesday, April 3, 2012 yesterday.

He explains the formula price of crude oil around the world. therefore indonesia wanted to create its own standard for oil. For comparison, usually using market reference price comparison of oil on the New York Mercantile Exchange (NYMEX), Bloomberg, and Brent London. Brent prices high than most other price reference. "Well, the ICP price usually higher US $ 5-10 per barrel than Brent."

For the price of ICP, Rudi went on, the Government and the contractor agreed to use formula prices: 50 percent plus 50 percent of the Platts RIM Intelligence Co. of this amount was then taken the average price. Platss and RIM was chosen because the two institutions were assessed independently. RIM is an independent data provider oil market in Japan. As for

the Platts is the leading provider of information about the world's most influential energy based in Singapore.

According to Rudi, high-quality oil is usually mild and easily processed into a fuel, such as Premium or Builtin. Meanwhile, oil is lightly processed into kerosene. Director of the Center for Petroleum and Energy Economics Studies, Ines, said the high price of crude oil in Indonesia due to the still high demand. "But supply less because production is down, so the ICP remains high," he said.

The reference price of Platts and RIM, according to Ines, as both these institutions to calculate the price of oil to the Asian market. "In addition, Platts was selected because there is some oil prices Indonesia published there, such as Minas."Deputy Minister of energy and Mineral resources Widjajono Partowidagdo ICP price guarantees have been calculated. He added, the calculation of the price of oil also consider production costs, the Government and the contractor. "Oil prices may not be based solely on production. Oil is a commodity trading. "

Referensi : http://www.tempo.co/read/news/2012/04/04/087394630/Mengapa-Harga-MinyakMentah-Indonesia-Lebih-Mahal