Libya Conflict Can Affect Oil Prices

National Development Planning Agency acknowledges, the political conflict taking place in some countries, like Libya, have a significant influence on oil prices. In response, the government said it was preparing a simulation of conditions in oil prices and their impact on the economy. The goal, to be more ready when the volatility of world oil prices continue to occur in the future.

"This problem of external shock and outside of government control. We can only hope that the conflict in Libya over with," said Head of National Development Planning Agency (Bappenas) Armida Alisjahbana, last weekend.

The increase in world oil prices, which are currently more than 100 United States dollars (U.S.) per barrel, also affected the national economy. However, Armida said the government continued to monitor the movement of world oil prices. Only, according to him, not much can be done by the government because of the turmoil that arises from external parties.

Although oil prices are still volatile, he said, the government has not intention of changing the macro assumptions in the near future. Indonesian oil price, which is pegged at around 80 U.S. dollars per barrel, is still considered relevant because the assumption is the assumption of annual price