Indonesia Freezes OPEC Membership Temporarily
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Kamis, 1 Januari 1970 07:00 WIB
TEMPO.CO, Jakarta - The Indonesian Government have decided to temporarily suspend its membership in the Organization of the Petroleum Exporting Countries (OPEC) during the 171st Meeting of the OPEC Conference in Vienna, Austria on Wednesday, November 30, 2016.
Energy and Mineral Resources Minister Ignasius Jonan explained that the decision was made following the organization's decision to cut down oil production of its members by 1.2 million barrels per day, excluding oil condensates.
During the meeting, OPEC also requested Indonesia to reduce its oil production by five percent, or equals to 37,000 barrels per day. "Whereas the need for state revenue remains large and oil production in the 2017 State Budget Draft has been set to be lowered by 5,000 barrels per day compared to 2016," Jonan said in a written statement.
According to Jonan, Indonesia can only reduce its oil production by 5,000 barrels per day. Jonan added that as a net crude importer, the reduction will not bring benefits to the country because it will possibly increase fuel prices.
REZKI ALVIONITASARI