Indonesia's Crude Oil Price Rises to US$89.43 per Barrel
The average Indonesian Crude Price (ICP) rose to US$89.43 per barrel in August.
Indonesia's average crude oil price (ICP) climbed to US$89.43 per barrel in August 2026, according to the Ministry of Energy and Mineral Resources (ESDM). Director General of Oil and Gas Laode Sulaeman attributed the increase to global market conditions affected by high geopolitical risks and potential disruptions to critical oil routes. The ICP for August 2026 was set at US$89.43 per barrel through a decree issued by the Minister of Energy and Mineral Resources.
Throughout August 2026, rising geopolitical tensions and concerns over supply disruptions along oil distribution routes contributed to the upward trend in global oil prices. The government is closely monitoring market developments to ensure national energy security and accountability in managing the ICP. Geopolitical tensions in the Strait of Hormuz and Red Sea regions, including attacks on oil tankers and refinery facilities, have heightened concerns about the global supply of oil.
ICP increases in July and August 2026 were as follows: ICP rose from $81.68 to $89.43 per barrel, while Brent crude oil increased from $83.97 to $88.08 per barrel, and WTI crude oil increased from $79.22 to $82.45 per barrel. Dated Brent oil prices also rose from $83.41 to $90.84 per barrel, marking a US$7.43 increase.
Projections for September 2026 suggest that the ICP could remain high, ranging between US$83 and $87 per barrel, primarily due to supply constraints in the Strait of Hormuz and a potential decline in U.S. oil inventories. The government maintains that the ICP formula remains transparent and accurately reflects international market dynamics.
As global market pressures persist, the government will continue to monitor changes in supply conditions and international market trends in the development of the September ICP. The monitoring of ICP prices and the application of the ICP formula are essential components of the government's efforts to ensure energy security and maintain accountability in managing state finances and the upstream oil and gas sector.
Written by urgent.news from Tempo.co English's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
