IMF Presses for Formation of Oil Data Organization

TEMPO Interactive, Melbourne: The International Monetary Fund (IMF) pressed for the formation of the world oil data organization or Joint Oil Data Initiative. This organization is necessary to prompt the impact of the oil price fluctuation on the international market.IMF’s Managing Director Rodrigo de Rato said the formation of the organization will be a preliminary step to encourage transparency in the world oil market. Thus negative effects of the world’s oil price fluctuation when facing the growth of the global economy and the world’s financial stability can be watched carefully.“We will support the organization ,” said Rato as reported by Tempo journalists from the annual meeting of finance ministers and central bank governors of G-20 countries which took place on November 18 and 19 in Melbourne, Australia.According to Rato, the step the G-20 countries take to create transparency in the oil market must be followed by other important measures. First, encouraging oil producing and consuming countries to add to investments in upstream and downstream activities in the energy sector. The limited investment in this sector potentially can cause problems in the future.Second, said Rato, to continue efforts of reducing the oil subsidy. Providing a subsidy is an expensive action and it is regretful in anticipating the rise of the poverty level due to the oil price hike. “Providing subsidies has caused much inefficiency in investment,” he said.According to Bank Indonesia Governor Burhanuddin Abdullah, the energy issue got the G-20 members’ serious concern. This issue widens to global warming and demography which were discussed thoroughly.G-20 regularly holds meeting every year to discuss a number of global economic matters. The union which was founded on December 15 to 16, 1999 in Berlin, Germany with 19 countries and the European Union as members, explores systematic cooperation among members in industry and economic growth.Setri Yasra