"We definitely must be wary about a possible surge in oil prices. I don`t think there are countries that like high prices when the world economies are in difficulty," Coordinating Minister for Economic Affairs Hatta Radjasa said on Monday.
He said if world oil prices soar too high, manufacturing production might come to a halt and the impacts might be substantial. Oil producing countries are cognizant about the possible eventualities.
"I think, the impact of the chaos has not been here yet," he said, adding that the chaos in Egypt and Tunisia had no impact yet on the adjustment of Indonesia`s oil price assumption (ICP) and the national economy.
"Based on the oil supply in Indonesia, a hard work is needed to increase the national oil production," Radjasa said. The national oil lifting targets as amount of 970,000 barrel to reach in 2011, considering Indonesia`s oil production has been in a decline every year.
"I`ve already asked the Executive Agency for Upstream Oil and Gas (BP Migas) to keep oil production consistently at 970,000 barrels per day," he said. Exploration must be increased, investment be maintained, enhanced oil recovery (EOR) operations be spurred and old oil wells must not be deserted.
On the demand, it is need to retrenchment step and fuel diversification to anticipate a surge in world oil prices. "Don`t speculate and don`t be panic, I believe OPEC will keep the stabilization by increasing their productions," Radjasa said.(*)
Editor: Aditia Maruli Radja
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