Kadin supports Indonesia out of OPEC

"The government`s move, as stated by President Joko Widodo (Jokowi), to exit temporarily from OPEC membership should be supported and appreciated," Puspasari said.
Yogyakarta (ANTARA News) - Hardini Puspasari, the chairperson of the Standing Committee of Cooperation Assistance/Development of Renewable Energy at the Indonesian Chamber of Commerce and Industry (Kadin), has said she supported the Indonesian government for temporarily quitting the membership of the Organization of Petroleum Exporting Countries (OPEC).

"The governments move, as stated by President Joko Widodo (Jokowi), to exit temporarily from OPEC membership should be supported and appreciated," Puspasari said, when contacted from Yogyakarta, on Friday.

According to her, the step will automatically give a large space for the development of new and renewable energy in Indonesia, because Indonesia has a huge potential for renewable energy.

In addition, she said that the increased need for fuel for the Indonesian people has become an urgent priority that requires serious attention.

Therefore, the government is expected to soon develop the renewable energy sector in a focused and serious manner, so as to improve the national economy, both in terms of revenue and expenditure, she stated.

Energy and Mineral Resources Minister Ignasius Jonan said in a statement on Thursday that Indonesia has decided to temporarily quit the OPEC membership.

Jonan announced the decision at an OPEC meeting in Vienna, Austria, on Wednesday.

Jonan, who attended the meeting, said the Indonesian government made the decision after OPEC agreed to cut its crude oil production by 1.2 million barrels per day, not including condensate.

With the agreement, Indonesias share of the cut was around 5 percent of its total production or around 37,000 barrels per day.

Jonan said Indonesia, already a major net importer of oil, still relies on oil revenue for much of its state income.

He said based on the 2017 state budget, it is predicted that the countrys oil production in 2017 would fall only by 5 thousand barrels per day in comparison with its production in 2016.

"That is the level of production cut Indonesia could accept, as the country could not afford a cut of 37 thousand barrels per day as required by OPEC," he pointed out.

He said for Indonesia, as a net importer, it would be difficult to agree to the cut as required by OPEC when oil price theoretically would increase.(*)

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