TEMPO.CO, Jakarta - Coordinating Ministry for Maritime Affairs, Luhut Binsar Pandjaitan, said that Indonesia’s freezed status in OPEC is actually a strategic step. If it wasn’t done, Luhut said, the policy to cut oil production would have affected state budget plans (APBN).
“If we participated we would cut 37,000 barrels, and that’s worth US$ 2 million daily, APBN would be affected,” Luhut Binsar Pandjaitan said on Thursday, December 1, 2016.
Luhut then added that this isn’t the first time for Indonesia, because back in 2008 Indonesia made the same decision. The country’s membership was also temporarily frozen and was then reinstated in order to ease oil imports.
As for the effects of the freeze, Luhut said that he would observe it as it proceeds. He also says that the most important thing is that Indonesia wouldn’t endure a daily US$ 2 million loss.
Indonesia decided to temporarily freeze the OPEC membership yesterday. The decision was taken in the 171 OPEC Assembly held in Wina, Austria, on Wednesday, November 30, 2016.