BY CONTINUING TO USE THIS SITE, YOU ARE AGREEING TO OUR USE OF COOKIES. REVIEW OUR
COOKIE NOTICE

Register with us today

and in less than 60 seconds continue your access to:Latest news headlinesAnalytical topics and featuresCommodities videos, podcast & blogsSample market prices & dataSpecial reportsSubscriber notes & daily commodity email alerts

Already have an account?

Log in to register

Forgot Password

Please Note: Platts Market Center subscribers can only reset passwords via the Platts Market Center

Enter your Email ID below and we will send you an email with your password.


  • Email Address* Please enter email address.

If you are a premium subscriber, we are unable to send you your password for security reasons. Please contact the Client Services team.

If you are a Platts Market Center subscriber, to reset your password go to the Platts Market Center to reset your password.

In this list
Oil

Indonesia interested in OPEC membership again, but needs to cut its oil imports first

Natural Gas | Oil

US oil and gas production outlook for 2019: Permian, Bakken, Appalachia

Oil

Platts Rigs and Drilling Analytical Report (RADAR)

Natural Gas | Oil | Refined Products | Shipping | Marine Fuels | Tankers

Bunker and Residual Fuel Conference, 16th Annual

Biofuels | Electric Power | Renewables | Natural Gas | LNG | Oil

Vitol cautious on shift to renewable energy as peak oil demand looms

Indonesia interested in OPEC membership again, but needs to cut its oil imports first

Abu Dhabi — Net oil importer Indonesia could reactivate its OPEC membership if it can successfully raise its crude oil production and reduce consumption by boosting the amount of biofuels used in its transportation sector, an official said Monday.

Not registered?

Receive daily email alerts, subscriber notes & personalize your experience.

Register Now

"If we can increase our production, we are more than happy to rejoin," secretary general of Indonesia's National Energy Council, Ir Saleh Abdurrahman, said at the ADIPEC oil conference in Abu Dhabi. "I have attended many OPEC meetings before, and I would like to come back, but wait until our production is increasing."

He told S&P Global Platts on the sidelines of the conference that Indonesia, which suspended its OPEC membership in late 2016, was currently pumping about 800,000 b/d, while importing 1.5 million-1.6 million b/d.

Indonesia's state-owned oil company Pertamina earlier this year began taking over operations at the country's oil fields from foreign companies, under a government plan to consume more of its crude domestically and reduce its imports, as the rupiah depreciates against the dollar.

To further cut its import bill, Indonesia on September 1 began requiring all diesel fuel sold domestically to contain 20% biodiesel.

The country also has plans to boost the amount of ethanol blended with gasoline, though it has not blended much to date.

"We are going with biodiesel now," Abdurrahman said. "That can reduce our import consumption. I think we are on massive way of introducing the biodiesel and bioethanol to our transport sector."

OPEC bylaws require members to be net exporters of crude. Indonesia first joined the organization in 1962 as its only Asian member outside the Middle East, but then suspended its membership in 2009 after its dwindling crude production made it a net importer.

Oilgram News

Platts Oilgram News brings fast-breaking global petroleum and natural gas news every day covering supply and demand trends, corporate news, government actions, exploration, technology, and much more. Click on the link below and we will set you up with a free trial.

Free Trial

The country briefly rejoined OPEC in late 2015, saying that belonging to the group would help it sign bilateral deals to boost its output and supply its domestic fuel market, but then suspended its membership again in 2016 when it refused to participate in production cuts OPEC instituted to help prop up oil prices.

"We just suspended our membership," Abdurrahman said, adding that many of Indonesia's ties to OPEC members remain intact. "We are a big family, OPEC."

--Herman Wang, herman.wang@spglobal.com

--Daniel Colover, daniel.colover@spglobal.com

--Rosemary Griffin, rosemary.griffin@spglobal.com

--Miriam Malek, miriam.malek@spglobal.com

--Edited by Jonathan Dart, newsdesk@spglobal.com