Oil subsidy to soar to Rp87 T : minister

"We see it (subsidy hike) as being quite secure at the end of this year because there is still balance between the increase in revenues and that in spending. The deficit in the state budget will remain unchanged," he said.

He said oil output until the end of 2007 would stand at 910,000 barrels per day, or lower than the government-set target of 950,000 bpd.

"So, the oil output will reach 95 percent of the target. But the price of our crude oil is 118 percent above target. So, our oil revenues will still be higher than expected," he said.