September 11, 2026 | 10:58 am
TEMPO.CO, Jakarta - Ministry of Energy and Mineral Resources (ESDM) recorded that the average Indonesian Crude Price (ICP) rose to US$89.43 per barrel in August. "The average ICP for August 2026 rose to US$89.43 per barrel due to global market dynamics driven by high geopolitical risks and potential supply disruptions along critical routes," said Director General of Oil and Gas Laode Sulaeman in an official statement received on Friday, as quoted by ANTARA.
The government set the average ICP for August 2026 at US$89.43 per barrel through the Decree of the Minister of Energy and Mineral Resources Number 352.K/MG.03/MEM.M/2026. This figure represents an increase of US$7.75 per barrel compared to the July 2026 ICP, which stood at US$81.68 per barrel.
The rise in global oil prices throughout August 2026 pushed the ICP to US$89.43 per barrel. The movement occurred amid rising geopolitical risks and concerns about supply disruptions along international oil distribution routes.
Ahead of the realization of September prices, the government is currently monitoring market developments, focusing on national energy security and accountability in managing the ICP.
"Various tensions in the Strait of Hormuz and Red Sea regions, including attacks on oil tankers and refinery facilities, have sparked market concerns regarding the smooth flow of global oil supplies," said Laode. The government said that the rise in the ICP aligns with the increase in major crude oil prices on the international market during August 2026.
In addition to concerns about disruptions to maritime routes, tightening political and economic sanctions, as well as the deadlock in international diplomacy, are cited as factors that limit the likelihood of a drop in global oil prices.
The rise in crude oil prices from July to August 2026 was recorded as follows: the Indonesian Crude Price (ICP) increased from $81.68 to $89.43 per barrel, rising by US$7.75. Meanwhile, Brent (ICE) increased by US$4.10, rising from US$83.97 to US$88.08 per barrel. WTI (NYMEX) increased by US$3.23, from US$79.22 to US$82.45 per barrel. Furthermore, Dated Brent rose from US$83.41 to US$90.84 per barrel, up by US$7.43.
Entering September 2026, the ICP is projected to remain high, specifically in the range of US$83–87 per barrel. The projection is linked to supply constraints in the Strait of Hormuz and an anticipated decline in U.S. oil inventories.
The government would continue to monitor global crude oil price movements as part of efforts to maintain national energy security. It also said that the ICP formula remains transparent and reflects international market dynamics, ensuring accountability for state finances and the upstream oil and gas industry.
Due to ongoing concerns about global market pressures, the development of the September ICP will track changes in supply conditions and international markets.
Monitoring the price and application of the ICP formula is part of the government's measures to safeguard energy security and ensure accountability in managing state finances and the upstream oil and gas industry.
Read: European Gas Prices Hit Highest Level in More Than Three Years
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