Global Negative Sentiment Prevails

KOMPAS/KARINA ISNA IRAWAN

Finance Minister Sri Mulyani Indrawati (center)

JAKARTA, KOMPAS – Dark clouds hang over the global economy as the oil price plummets. Stock markets have sunk into turmoil as negative sentiments grow around the world.The Indonesian government is monitoring how the slumping global price of oil might impact the state budget. On the other hand, some businesses have profited from the declining price.

Bloomberg reported at 9 p.m. on Monday (9/3/2020) that the price of Brent crude oil had plunged 20.39 percent in a single day to US$36.04 per barrel, whereas US West Texas Intermediate (WTI) crude fell 19.65 percent in a single day to $33.17 per barrel. The figures are almost half of the $63 per barrel macro assumption used in the 2020 state budget.