Indonesia finance minister assessing impact of oil price plunge on state budget

MACROECONOMICS - JAKARTA. Indonesia's Finance Minister Sri Mulyani Indrawati on Monday said she was assessing the impact of a plunge in global oil prices on the 2020 state budget.

Indonesia is a net oil importer, but a portion of government revenues comes from the oil and gas sector.

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There can be a drop in the nominal value of Indonesia's oil imports due to steep falls in prices, depending on how long prices stay low, but some state revenues might also fall, Indrawati told reporters.

The drop in oil prices "in the currently depressed economic condition, can actually be positive and stimulating" for some countries, she said, but noted that the uncertainty surrounding "the oil price war" was also triggering capital outflows.