Oil Imports Account for 50 Percent of Domestic Demand

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  • Arcandra Tahar (Left) and Ignasius Jonan. TEMPO/Aditia Noviansyah

    Arcandra Tahar (Left) and Ignasius Jonan. TEMPO/Aditia Noviansyah

    TEMPO.CO, Jakarta - The Energy and Mineral Resources Deputy Minister Archandra Tahar said that oil imports account for 50 percent of domestic oil demand. “National oil demand currently stands at 1.6 barrels per day, whereas national crude oil output is around 800,000 barrels per day,” he said on Saturday as quoted by Antara.

    Therefore, he said, the government is aiming to achieve energy self-sufficiency in accordance with the government’s Nawacita (nine priority programs). He said that one of the efforts to achieve it is the operations of fuel storage tanks belonging to PT Oiltanking Karimun in Lekup Bay in Karimun District, Riau Province.

    “We expect that energy security can be improved in a bid to meet domestic demand, particularly oil products,” he said.

    Indonesia’s fuel product demand stands at 68-70 million kiloliters per year, or equal to 250,000 kiloliters per day. With a total capacity of 730,000 kiloliters, PT Oiltanking Karimun’ storage tank output is capable of meeting three days of domestic fuel demand.

    Earlier, Bank Indonesia (BI) Governor Agus Martowardojo said that fuel and LPG prices may be adjusted in the second half of 2017. “We will discuss whether the condition is feasible to make the adjustment,” he said.

    Agus said that he will be taking into account the time of the adjustment, among others. The government ought to ensure that price adjustment does not occur simultaneously with the high inflation rate. According to him, deflation of 0.02 percent last month was the right time to make the adjustment.