The Indonesian government does not yet consider the recent rise in oil prices to over 80 US dollars a barrel as adversely affecting its budgetary position and the overall economy, local press said Thursday.

 Finance Minister Sri Mulyani Indrawati said that no revisions were planned to the oil price assumption used in the budget, as higher fuel-subsidy spending would be canceled out by higher revenues.

"If, on the other hand, there was to be a drop in (oil and gas) production, then that would very much affect the budget," she was quoted by leading newspaper The Jakarta Post as saying.

"We will, however, continue to monitor the situation. This year 's revised budget is final, but we will see how things develop from month to month."

The government has assumed the Indonesian Crude Price (ICP) at 60 dollars a barrel for 2007's revised budget and 2008's draft budget.

Indonesia's oil production has been revised downward to 950,000 barrels per day this year, but is expected to increase to 1.034 million barrels next year.

The ICP, based on major oil prices in the Asian region, is commonly lower than U.S. and London future crude prices. It ranged between 72 and 73 dollars a barrel in August.

Source: Xinhua