Category: Indonesia

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 […]

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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 […]

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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 […]

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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 […]

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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 […]

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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 […]

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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, […]

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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 […]

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