Indonesia to keep an eye on surging oil

Careful watch: Motorists cross the Raja Haji Fisabililah bridge connecting Batam Island with surrounding islands. The Indonesian government is gauging what the rising price of crude oil might mean to its state budget, wary that it may be forced to act on it. — AFP

JAKARTA: The government will keep a watchful eye on crude oil prices, which are expected to surge by the end of this year. The Finance Ministry says it is prepared to carry out stress testing if needed to anticipate any impact on the state budget, particularly energy subsidies.

Goldman Sachs, Citigroup and others are predicting that the crude oil price will rise to over US$100 per barrel by 2024, following production cuts by Russia and Saudi Arabia, which many fear will cause slowed global growth and prolonged high inflation.