TLDR
The Indonesian Crude Price (ICP) is the official monthly reference price for Indonesian crude oil, published in USD per barrel by the Directorate General of Oil and Gas (Ditjen Migas) under the Ministry of Energy and Mineral Resources. It is calculated as a moving average spot price of a basket of eight Indonesian crude types — Minas, Duri, Attaka, Arjuna, Cinta, Widuri, Belida, and Senipah. ICP is more than a price index. It is the basis for Production Sharing Contract revenue calculations, the headline assumption in the state budget (APBN), the reference for the 25% Domestic Market Obligation, and an index used in long-term LNG export contracts. Recent monthly values have ranged from USD 61–74 per barrel.
Content
Introduction
Every barrel of Indonesian crude oil is sold at a price. That price determines how much revenue the government collects, how much an oil contractor earns, what the state budget can spend, and what a domestic refinery has to pay for its feedstock. None of this is left to ad-hoc negotiation. Indonesia uses a single official reference price — the Indonesian Crude Price, or ICP — published each month and applied across the entire upstream value chain.
For anyone working in or around Indonesian oil and gas — whether in operations, finance, government, or commercial — understanding ICP is foundational. It shows up in production reports, lifting documents, royalty calculations, contract clauses, and the front page of every state budget discussion. This article explains what ICP is, how it is set, what it covers, and why it matters.
What ICP Is
The Indonesian Crude Price is a monthly average price for Indonesian crude oil, denominated in USD per barrel and published by the Directorate General of Oil and Gas (Direktorat Jenderal Minyak dan Gas Bumi, or Ditjen Migas) under the Ministry of Energy and Mineral Resources (KESDM). Each month, Ditjen Migas calculates ICP based on the moving average spot prices of a basket of eight Indonesian crude varieties and issues a Ministerial Decree (Keputusan Menteri ESDM, or Kepmen ESDM) formalizing the figure.
It is not a market price in the sense that no single physical transaction occurs at the ICP level. Instead, it is an officially calculated reference price that all upstream commercial and fiscal calculations key off. Pertamina, the state-owned oil company, sells government crude share at prices derived from ICP. Production Sharing Contract revenue is valued at ICP. The state budget builds its oil revenue line based on an assumed ICP figure for the upcoming year.
Related reading: Natural Gas Selling Price | Crude Oil Lifting Explained
The Basket of Eight Crude Types
ICP is built from a basket of eight Indonesian crude varieties, each representing a different field, region, and crude quality:
- Minas — Riau, Sumatra. Light sweet crude. Historically the primary Indonesian benchmark and the namesake of the Sumatra Light Crude (SLC) family.
- Duri — Riau, Sumatra. Heavy, waxy crude with a high pour point, produced through steam injection in one of Indonesia's largest fields.
- Attaka — East Kalimantan offshore. Light sweet crude from the Mahakam Delta production area.
- Arjuna — West Java offshore. Medium-quality crude from the Java Sea.
- Cinta — Madura Strait offshore. Offshore crude from East Java waters.
- Widuri — East Java offshore. Offshore crude.
- Belida — South Sumatra. Condensate-rich light crude.
- Senipah — East Kalimantan. Light condensate crude associated with gas field production.
Each crude has its own physical properties — API gravity, sulfur content, pour point, and other quality markers — and each commands its own market price. The composite ICP figure that gets reported as the headline number is derived from this basket of eight.
How ICP Is Calculated
ICP is a moving average spot price. Each crude type's price is determined relative to international benchmark assessments — typically Dated Brent, Dubai, or regional Asia-Pacific markers — with a differential applied to reflect that crude's quality. A light sweet crude like Minas or Attaka prices at a relatively small differential to Brent. A heavier crude like Duri prices with a larger discount.
The exact formula and methodology are set in a Ministerial Decree dedicated to ICP calculation. The current formula regulation is Kepmen ESDM Nomor 65.K/2025, issued February 18, 2025. This decree is updated periodically as market structures, available benchmarks, and reporting practices evolve.
Each month, Ditjen Migas pulls the relevant pricing data from international assessment agencies, applies the formula, and produces the monthly ICP figure. The result is then formalized in a separate Ministerial Decree specific to that month — for example, the March 2025 ICP of USD 71.11 per barrel was set by Kepmen No. 143.K/MG.01/MEM/2025, issued April 16, 2025.
How ICP Is Used
ICP is not just a number that gets published and filed away. It drives four major operational and fiscal applications:
1. PSC Revenue Calculation
Under a Production Sharing Contract, the value of crude oil produced by a contractor (Kontraktor Kerja Sama, or KKKS) is calculated at ICP. ICP is the price that determines:
- The First Tranche Petroleum (FTP) value taken off the top before cost recovery
- The size of the cost recovery pool the KKKS can claim
- The value of the profit oil split between the government and the contractor
- The export price applied when the KKKS sells its contractor share to a third party
Both the government share — sold by Pertamina — and the KKKS share are valued at ICP or prices derived from it. A movement in ICP directly translates to a movement in upstream revenue for both parties.
2. State Budget (APBN) Assumption
ICP is one of the headline macroeconomic assumptions in the Indonesian state budget (Anggaran Pendapatan dan Belanja Negara, or APBN). During budget deliberations between the government and the House of Representatives (DPR), an assumed ICP figure for the upcoming year is agreed and locked in. That figure flows directly into the projected oil and gas revenue line.
For the 2026 APBN, the ICP assumption was set at USD 70 per barrel. If actual monthly ICP averages above that level over the year, the government collects more than budgeted. If it averages below, revenue falls short and budget pressures emerge. The assumed ICP is therefore a politically and fiscally sensitive number.
3. Domestic Market Obligation (DMO) Price
Under standard Production Sharing Contract terms, a KKKS must supply 25% of its contractor crude oil share to the domestic market — the Domestic Market Obligation, or DMO. The price for DMO crude is linked to ICP. For the first five years of production from a new field, DMO crude is sold at 25% of ICP. After that, it reverts to full ICP for the remainder of the contract term.
This DMO mechanism is one reason ICP affects domestic refinery economics as well as upstream revenue. Pertamina's refineries, as the primary domestic buyer of crude, pay prices keyed to ICP.
4. LNG Contract Indexation
ICP has been used as a price index in long-term LNG export contracts to East Asian buyers, particularly Japan and South Korea. In some contracts, LNG prices are formulated as a function of ICP, sometimes blended with other benchmarks like the Japanese Crude Cocktail (JCC). This use is less central than the PSC and APBN applications but extends ICP's reach into international gas trade.
Related reading: Crude Oil Lifting Explained | The History of Pertamina
Recent ICP Data: 2025 to 2026
ICP in 2025 and early 2026 has moved within a relatively wide band, tracking global crude markets:
| Month | ICP (USD/bbl) | Decree |
|---|---|---|
| February 2025 | 74.29 | — |
| March 2025 | 71.11 | Kepmen 143.K/MG.01/MEM/2025 |
| May 2025 | 62.75 | — |
| June 2025 | 69.33 | — |
| July 2025 | 68.59 | Kepmen 269.K/MG.01/MEM.M/2025 |
| November 2025 | 62.83 | — |
| December 2025 | 61.10 | Kepmen 10.K/MG.03/MEM.M/2026 |
| February 2026 | 68.79 | — |
ICP through 2025 ranged from approximately USD 61 to USD 74 per barrel. The 2026 APBN assumption of USD 70 per barrel sits near the middle of that range, reflecting an expectation that prices will stabilize around the 2025 average.
What Moves ICP
Because ICP follows international spot crude markets, the same factors that move global benchmarks move ICP. Each monthly Ditjen Migas decree includes a brief market commentary explaining the primary drivers behind that month's value. Recurring themes include:
- OPEC+ production decisions — output increases put downward pressure on price; voluntary cuts support it.
- US crude inventory levels — rising commercial stockpiles signal demand weakness and weigh on price.
- Chinese crude demand — China is the largest crude buyer in Asia. Declining refinery throughput in China reduces regional crude prices, including Indonesian grades.
- Refinery utilization in Asia — lower run rates across Japan, Korea, Taiwan, and Singapore reduce demand for the same Indonesian crudes that feed those refineries.
- Geopolitical developments — conflict in oil-producing regions, sanctions on Iranian or Russian crude, and trade tariff announcements all flow into spot prices.
- US dollar strength — crude is priced in USD, so a stronger dollar reduces purchasing power for importing nations and tends to weigh on price.
The December 2025 ICP of USD 61.10, for example, was attributed to oversupply concerns, high US production, increased OPEC+ output, easing geopolitical tensions related to Russia-Ukraine, and declining Chinese refinery throughput. The March 2025 ICP of USD 71.11 reflected concern over US trade tariffs, OPEC+ production signals, rising US inventories, and Asian market hesitation around Iranian crude purchases.
Where to Find ICP Data
The official source for ICP data is the Ditjen Migas website at migas.esdm.go.id/post/harga-minyak-mentah. The page hosts:
- Monthly Kepmen ESDM PDFs for every month from 2019 onward
- The current formula regulation (Kepmen ESDM Nomor 65.K/2025)
- Historical archive going back several years
Each monthly decree contains the official ICP figure, individual crude type prices, the major international benchmarks tracked alongside ICP (Dated Brent, WTI Nymex, Brent ICE, OPEC Basket), and a market commentary. For anyone working with PSC accounting, government revenue, or domestic refinery procurement, this is the canonical source.
Conclusion
The Indonesian Crude Price is more than a published number. It is the connective tissue between Indonesia's upstream production, its government revenue, its budget process, its domestic refining sector, and its long-term gas export contracts. Every month, the calculation runs, the decree is signed, and the value enters dozens of downstream calculations across the country.
For anyone working in Indonesian oil and gas — at a KKKS, in government, in a domestic refinery, in an export trading desk, or in financial analysis — ICP is operational vocabulary. Understanding what it is, how it is built, and where it shows up is the difference between reading a production report and understanding what the numbers mean.
Related reading: Natural Gas Selling Price | Crude Oil Lifting Explained | The History of Pertamina | Production Facilities