Indonesia explores possibility to become OPEC observer

In January 2009, Indonesia decided to freeze its OPEC membership, considering that it was no longer a big exporter and had even become a net importer.
Jakarta (ANTARA News) - Indonesia is evaluating the possibility of becoming an observer at the Organization of Petroleum Exporting Countries (OPEC), Minister of Energy and Mineral Resources Sudirman Said stated here on Thursday.

Although it has become a net importer of oil, Indonesia still has an interest in OPEC, he noted.

"As a buyer, we may not stay too far away from the sellers because if we can regularly meet them, we will be closer to the market," the minister explained.

He affirmed that the proximity to the market will also negate the role of the oil and gas mafia that has so far always benefited from the huge gap between sellers and buyers.

Sudirman pointed out that Indonesia has been offered to again play an active role in OPEC although the country has already become a net importer.

He emphasized that Indonesia can become an observer at OPEC.

"What is important is that we can attend their meetings, and the most important thing is that we can interact more closely with the market," he affirmed.

Indonesia will apply for being an observer at OPEC in June 2015, Director General of Oil and Gas at the Ministry of Energy and Mineral Resources, I. Gusti Nyoman Wiratmaja Puja stated.

"Being an observer at OPEC will provide us with a wider exposure to the market, and we will have more friends. We will be invited to attend important meetings," he remarked.

Moreover, he said that the aim of joining OPEC again was to buy oil based on long-term contracts rather than through a spot market.

Indonesia became an OPEC member in 1962 when the countrys oil production surpassed its domestic needs.

In January 2009, Indonesia decided to freeze its OPEC membership, considering that it was no longer a big exporter and had even become a net importer.

Indonesia became an observer at the 155th OPEC Conference in Angola in 2009.

OPEC was established in 1960 by several oil exporting countries such as Iraq, Iran, Kuwait, Saudi Arabia, and Venezuela.(*)

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