Indonesia’s withdrawal from OPEC membership is unlikely to affect the country’s oil supply security, given the limited benefits seen since it rejoined the group on January 1 this year, industry Continue Reading
Pertamina oil Amid rising doubts about OPEC’s crude oil production freeze agreement, one member of the organization that’s so far stayed out of the spotlight has declared its plans to Continue Reading
Indonesia is now producing natural gas from a deep-water site that represents a milestone for the country’s energy goals, a Chevron subsidiary said. Chevron Indonesia Co. said it started natural Continue Reading
BP has made a final investment decision for an $8-billion expansion of its Tangguh liquefied natural gas (LNG) project in Indonesia, the country’s energy regulator (SKKMigas) said on Friday, and Continue Reading
Indonesia’s efforts to boost upstream petroleum investments to mitigate falling production have not made much headway in recent years, further entrenching its reliance on imports. Nearly two years after Joko Continue Reading
Indonesia’s governor to the Organization of the Petroleum Exporting Countries said on Monday that oil at $45 a barrel was “not bad” and that there would be no urgency to Continue Reading
Southeast Asia’s largest economy is returning to OPEC as its government warns the collapse in crude prices has worsened an “increasingly unappealing” energy investment climate and dependence on foreign oil Continue Reading
U.S. Energy Information Administration expects Indonesia will still import oil even after it rejoins OPEC. File photo by project1photography/UPI WASHINGTON, Oct. 16 (UPI) — Despite its bid to reactivate its membership in OPEC, Indonesia will likely need to import more oil to meet its domestic demand, a U.S. analysis said. In September, Indonesia submitted a request to reactivate its membership in the Organization of Petroleum Exporting Countries, which it left in 2009 because it was no longer a net exporter. OPEC in a response statement said its members would "welcome [Indonesia’s] return." Analysis from the U.S. Energy Information Administration said geographical characteristics and a lack of refining capacity means the Indonesian economy will still need to import oil products , particularly gasoline. According to EIA, Indonesia produced about 790,000 barrels of crude oil and condensates, an ultra-light form of oil. That puts it above Ecuador and Libya, the two […]
Iran supports Indonesian bid to rejoin OPEC after six-year absence. Photo courtesy of SHANA/Hasan Hosseini. TEHRAN, Oct. 15 (UPI) — The Iranian government welcomes the eventual return of Indonesia to the Organization of Petroleum Exporting Countries, Iran’s oil minister said. Indonesia in September submitted a request to reactivate its membership in OPEC. "We hope that with Iran’s support in the upcoming OPEC meeting, Indonesia’s return to the organization can be finalized," Iranian Oil Minister Bijan Zangeneh said. "Then, Tehran and Jakarta can resume their bilateral cooperation in the global oil market." Iran’s oil minister welcomed his Indonesian counterpart, Sudriman Said, to the capital to discuss how the two re-emerging producers can work together . Zangeneh said Iran is interested in working with Indonesia in the crude oil and liquefied natural gas markets. According to the U.S. Energy Information Administration, natural gas production in Indonesia increased by more than 20 […]
The Organization of Petroleum Exporting Countries has accepted Indonesia’s request to reactivate the country’s membership. Indonesia formally asked for reinstatement at the cartel’s June ministerial meeting in Vienna (OGJ Online, June 5, 2015) . The Southeast Asian country withdrew from OPEC in 2009 citing growing internal demand for energy, declining crude oil and condensate production in mature fields, and limited investment to increase production capacity. Indonesia had become a net importer of petroleum and other liquids by 2004 after domestic demand exceeded production. Indonesian government officials said that rejoining OPEC will strengthen its cooperation with oil-producing countries, provide greater access to crude oil supplies, and allow the country to be a link between energy producers and consumers. Indonesia currently buys crude oil and petroleum products through third parties or traders and seeks direct access to long-term crude supply contracts through negotiations between OPEC-member national oil companies. Indonesia produced about […]
Indonesia is on track to resume full OPEC membership in December after a break of almost seven years, according to three people familiar with the matter. The Asian nation, which suspended membership in January 2009 after becoming a net oil importer, received formal notification that the Organization of Petroleum Exporting Countries’ 12 members all support its return, said the people, who asked not to be identified because the discussions aren’t public. The move is subject to final approval at the group’s ministerial meeting on Dec. 4, they said. OPEC agreed to suspend Indonesia’s membership in September 2008 at the country’s own request, almost half a century after the nation joined. The country pumped 852,000 barrels a day of oil in 2014 and consumed almost twice as much, according to BP Plc. Indonesia received confirmation of members’ support on Aug. 31, one of the people said. OPEC member countries also […]
The coal market’s best hope of breaking a four-year losing streak may be its biggest supplier’s plan to burn more at home. Indonesia plans to expand generating capacity by 46 percent in four years with new power plants, half of them burning coal. If that happens, fuel consumption may triple to the equivalent of 76 percent of last year’s exports and boost prices more than 50 percent, the Indonesia Coal Mining Association says. The country currently consumes less electricity than Taiwan, a nation with about a 10th of its population. Benchmark Asian coal prices fell every year since 2010 after producers from Australia to Colombia flooded the market and demand faltered in China, the biggest consumer. “Any reduction in Indonesian exports helps the seaborne market,” said Ted O’Brien, chief executive officer of Doyle Trading Consultants, a coal industry analytical firm based in Grand Junction, Colorado. “Like other Asian countries, […]
Sudirman Said, Indonesia’s minister for energy and mineral resources, in Jakarta on Oct. 26. ENLARGE Photo: Reuters JAKARTA—Indonesia is considering rejoining the Organization of the Petroleum Exporting Countries as an observer after leaving the group six years ago, a minister said Thursday. “We want to have an interaction with the market [by becoming an observer in OPEC],” the Minister of Energy and Mineral Resources Sudirman Said said. He said Indonesia has in the past been invited by OPEC to attend meetings as an observer. Indonesia discontinued its OPEC membership when it expired on Jan. 1, 2009. It has been a net oil importer since the early 2000s. The government is struggling to increase the country’s crude-oil production from about 830,000 barrels a day currently, while domestic consumption continues to rise. Indonesia’s renewed interest in attending OPEC meetings comes after a slump in oil prices since last summer that has […]
ENLARGE Indonesian motorists line up to fill up their tanks after the government announced an increase in fuel prices in November. Associated Press JAKARTA, Indonesia—Indonesia will scrap gasoline price subsidies starting Thursday as part of President Joko Widodo’s push to free up more funding for infrastructure spending to help boost the economy. At the same time, the price of gasoline will be cut to 7,600 rupiah, or about 61 U.S. cents, a liter from 8,500 rupiah a liter to reflect falling global oil prices, said Energy and Mineral Resources Minister Sudirman Said on Wednesday. State-owned oil and gas company PT Pertamina is the sole seller of gasoline and diesel fuel in Indonesia and will decide on a monthly basis whether to make any changes to the fuel prices, Mr. Said added. The government will continue to subsidize diesel prices , but will fix the amount of the subsidy at […]
By Ben Otto JAKARTA, Indonesia–The central bank raised interest rates to the highest level in five years at a surprise meeting on Tuesday, seeking to contain inflation a day after the government announced a controversial increase in fuel prices in Southeast Asia’s largest economy. The decision to raise subsidized fuel prices, which triggered riots in the past, marked President Joko Widodo’s most important move since taking office a month ago. It earned praise from economists as a promising signal of things to come, even as students protested and bus operators threatened to strike, potentially upsetting travel for millions of commuters in Jakarta alone. Indonesia heavily subsidizes fuel prices, making gasoline and diesel some of the cheapest in the region. But but the bill for doing so amid rapid economic growth and growing consumer demand in the net-oil-importing nation has ballooned in recent years. This year, Indonesia will spend about […]
Print Back to story Indonesian President Joko Widodo raised fuel prices to reduce state energy subsidies, moving on an election pledge less than a month after taking office to free funds for development plans. The price of subsidized gasoline was increased to 8,500 rupiah ($0.70) a liter from 6,500 rupiah effective today, and diesel has been raised to 7,500 rupiah a liter from 5,500 rupiah, after an announcement by Widodo in Jakarta late yesterday. The central bank will hold an unscheduled monetary policy review today, spokesman Peter Jacobs said. The rupiah and local stocks rallied today on optimism that Widodo, known as Jokowi, is taking steps to overhaul Southeast Asia ’s largest economy. While falling oil costs gave the president room to limit the fuel price increase, his government has yet to say if it will revamp or scrap the decades-old subsidy system beyond changing prices. “This was a […]
ByBen Otto and I Made Sentana A worker at a state-owned Pertamina petrol station waits for a traditional Baja vehicle with a picture of Indonesian President Joko Widodo on it to pull up in Jakarta on Nov. 17. Reuters JAKARTA, Indonesia–Economists have welcomed President Joko Widodo’s move to increase the price of subsidized fuel by roughly a third, calling it a sign of his reform-minded leadership. DBS economist Gundy Cahyadi referred to it as a “positive signal of the government’s commitment to push for tough economic reforms” in Southeast Asia’s largest economy. OCBC economist Wellian Wiranto called it “a good balance” between playing safe and acting decisively. More In Subsidies IMF Takes Aim at Thailand’s Costly Rice Subsidies Thai Corn Farmers Join Clamor for Hand-Outs Thailand Likely Will Struggle to Get Back to No. 1 in Rice Exports Thai Government, Farmers Take First Step to Reach Accord on Rice Thai Farmers Signal Willingness […]
At the Indonesia International Motor Show last week, car marketer Pankaj Jain didn’t have much cause for worry that an impending fuel-price increase by incoming President Joko Widodo would harm sales. People “buy bigger” in Indonesia, Jain said, raising his voice over the blare of a stereo as thousands inspected the latest models at a show dominated by sturdy and boxy multi-purpose cars. “Here, the MPV market is close to 60 percent, while in India it’s very small,” said the marketing director at ’s local unit. The preference for larger cars will probably keep demand for diesel and gasoline elevated in the world’s fourth-most populous nation, undermining Widodo’s pledge to raise subsidized fuel prices and curb the energy imports that have spurred a near-record . Big families, bad roads and rising incomes mean the penchant for gas guzzlers will be hard to break. “Fuel consumption continues to grow because, […]
Indonesian oil producers have restarted almost all of the 12,000 b/d of crude output in central Sumatra that they shut last month during forest fires, a spokesman for upstream regulator SKK Migas said Tuesday. Haze from the forest fires forced producers to halt output starting March 11, as hazardous air prevented workers from continuing to work at oil fields in the region. "All producers have almost recovered their production," said Handoyo Budi Santoso, head of SKK Migas’ communications division. "The production is currently ramping up to reach their normal production. We expect the normal production figure can be reached as soon as possible." Chevron has restarted 573 wells, but output is fluctuating as the wells return to normal production, Santoso said. Energi Mega Persada and local company Bumi Siak Pusako, a joint venture between state-owned Pertamina and the local government, have also ramped up […]
Kerry on Climate Change On Sunday, Secretary of State John Kerry delivered remarks on climate change to an audience of students in Jakarta, Indonesia. He accused climate change deniers of burying their heads in the sand. JAKARTA, Indonesia — Secretary of State John Kerry urged Indonesia on Sunday to take steps to combat climate change, warning that failure to act would jeopardize the nation’s resources and damage its economy. Warming seas, he said, could deal a severe blow to Indonesia’s fishing industry, while powerful storms could buffet the country and rising seas may put much of Jakarta, the capital, under water. “This city, this country, this region is really on the front lines of climate change,” Mr. Kerry said in a speech . “It’s not an exaggeration to say to you that your entire way of life that you live and love is at risk.” Mr. Kerry, who has […]
Magenta-colored bars creep up on a monitor screen at the control room of Senipah-Peciko-South Mahakam oil terminal in Indonesia’s East Kalimantan province, indicating three storage tanks are being filled. “It takes more than 60 days now to fill a 500,000 barrel tank with crude from Bekapai field,” said Kristanto Hartadi, a spokesman at Total E&P Indonesie, a unit of the French oil major Total SA (FP) that operates the facility. “That compares with about 10 days when it was at full production.” Bekapai, which pumped more than 50,000 barrels a day in 1978, now flows at just 7,000 barrels, a symbol of the decline in Indonesia’s oil and gas production. Aging fields, rising exploration costs and increased fuel demand will force Southeast Asia’s most populous nation to import 90 percent of the oil it needs by 2030, according to the Agency for the Assessment and Application of Technology. Domestic […]
Pirates hijacked a second tanker in a month off the Malaysian coast near Singapore, Asia’s biggest oil-trading hub, according to the International Maritime Bureau. Ten pirates armed with guns and knives boarded a tanker about 7.3 nautical miles (13.5 kilometers) west of Malaysia’s Pulau Kukup in the Strait of Malacca , forcing the crew to transfer gasoil from the vessel to another ship, the IMB’s Piracy Reporting Center said in a Nov. 7 incident report on its website. The attack was about 34 miles west of Singapore, according to the co-ordinates recorded by the agency. The U.S. Energy Information Administration identifies the Malacca Strait, which connects the Indian Ocean with the South China Sea and Pacific Ocean, as one of the world’s two “most strategic chokepoints” for oil trade along with the Strait of Hormuz in the Persian Gulf. It is the shortest sea route between the Middle East […]
Jakarta (Platts)–4Nov2013/226 am EST/726 GMT Indonesia is likely to miss the government’s revised 2013 crude production target of 840,000 b/d, by pumping only 827,000 b/d on average this year, Elan Biantoro, spokesman for upstream regulator SKK Migas, said Monday. But the country may manage to arrest the rate of decline in output, Biantoro added. “The average production as of October this year is 827,000 b/d on average. We estimate that the production figure is likely to be same until the end of the year. It is difficult to meet the government’s target,” Biantoro said. Article continues below… Request a free trial of: Oilgram News Oilgram News Oilgram News brings you fast-breaking global petroleum and gas news on and including: Industry players, upstream and downstream markets, refineries, midstream transportation and financial reports Supply and demand trends, government actions, exploration and technology Daily futures summary Weekly API statistics, and much more […]
