Indonesia could End Up as a 'Pure' Oil Importer: Expert  

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  • TEMPO.CO, Jakarta – The Indonesian Petroleum Association (IPA) said that the national oil consumption boom that follows the economic and population growths is unstoppable. Therefore, the association implores the government to make breakthroughs in the oil and gas sector.

    "Otherwise, Indonesia could end up being a country that purely imports oil," said Lukman Mahfoedz, former IPA chairman, yesterday.

    The IPA noted that, in 2010, Indonesia's energy demand amounted to 3.3 million barrels of oil per day (BOPD). By 2019, the demand is projected to increase to 6.19 million BOPD, while supply will only amount to 6.04 million BOPD.

    "By 2025, the difference between demand and supply could reach 2.4 million to 2.5 million BOPD," said Lukman.

    Ahmad Bambang, marketing and retail director at state oil and gas company Pertamina, previously said the company had signed agreements to update four national refineries with four foreign oil and gas companies.

    The four companies are Saudi Aramco (Saudi Arabia), JX Nippon Oil & Energy Corporation (Japan), Sinopec Limited (China), and PTT Global Company Limited (Thailand).

    Bambang said the agreement is necessary as the national oil and gas production continues to decline.

    "The average age of our refineries is more than 30 years," he said on Monday.