JAKARTA, May 10
(Bernama) - Indonesia could have reaped great profits from the current
high world crude oil prices and not have plunged into its present
difficult situation, had it managed its oil potential well.
Oil industry observer Dr Kurtubi said the country's failure to
manage its oil wealth properly in the past few years had caused its
crude oil production to decline.
This in turn, he said, led to its dependence on oil imports which had now placed the country in a difficult position.
Kurtubi made the remarks in an interactive discussion on fuel oil
prices organised by the Regional Representatives Council (DPD) here
Saturday.
He said that as a result of the improper management of Indonesia's
oil potential, the government was now facing difficulties in
maintaining the state budget amid the sky-rocketing of crude prices in
the world market.
"Indonesia could have reaped huge profits from the world crude
price hikes but mismanagement of our oil potential has caused us to
face difficulties now," Kurtubi was quoted by Antara news agency.
He said Indonesia's daily current oil output was about 927,000
barrels. With this oil production level, it was difficult for Indonesia
not to import oil.
In the current situation where crude oil prices surged to around
US$125 a barrel, the government had to spend a large amount of funds to
import oil.
"If we want to be safe and gain profit from world crude price
hikes, we have to pump up at least 1.3 million barrels daily. If that
level is achieved, we will be safe in the face the world oil
turbulences," he said.
With an output of 1.3 million barrels per day, the government
could afford to spend Rp26 trillion to Rp30 trillion on fuel oil
subsidy, without having to raise domestic fuel oil prices, he said.
The government has decided to raise domestic fuel oil prices due
to the upward trend in global crude prices which was expected to cause
its fuel oil subsidy burden to rise well beyond the projected amount.
It was previously reported that the price of premium gasoline
would be raised from Rp4,500 to Rp6,000 per litre, diesel oil from
Rp4,300 to Rp5,500 per litre and kerosene from Rp2,000 to Rp2,300 per
litre. (RM1 = Rp2,800)
source: bernama.com
(Bernama) - Indonesia could have reaped great profits from the current
high world crude oil prices and not have plunged into its present
difficult situation, had it managed its oil potential well.
Oil industry observer Dr Kurtubi said the country's failure to
manage its oil wealth properly in the past few years had caused its
crude oil production to decline.
This in turn, he said, led to its dependence on oil imports which had now placed the country in a difficult position.
Kurtubi made the remarks in an interactive discussion on fuel oil
prices organised by the Regional Representatives Council (DPD) here
Saturday.
He said that as a result of the improper management of Indonesia's
oil potential, the government was now facing difficulties in
maintaining the state budget amid the sky-rocketing of crude prices in
the world market.
"Indonesia could have reaped huge profits from the world crude
price hikes but mismanagement of our oil potential has caused us to
face difficulties now," Kurtubi was quoted by Antara news agency.
He said Indonesia's daily current oil output was about 927,000
barrels. With this oil production level, it was difficult for Indonesia
not to import oil.
In the current situation where crude oil prices surged to around
US$125 a barrel, the government had to spend a large amount of funds to
import oil.
"If we want to be safe and gain profit from world crude price
hikes, we have to pump up at least 1.3 million barrels daily. If that
level is achieved, we will be safe in the face the world oil
turbulences," he said.
With an output of 1.3 million barrels per day, the government
could afford to spend Rp26 trillion to Rp30 trillion on fuel oil
subsidy, without having to raise domestic fuel oil prices, he said.
The government has decided to raise domestic fuel oil prices due
to the upward trend in global crude prices which was expected to cause
its fuel oil subsidy burden to rise well beyond the projected amount.
It was previously reported that the price of premium gasoline
would be raised from Rp4,500 to Rp6,000 per litre, diesel oil from
Rp4,300 to Rp5,500 per litre and kerosene from Rp2,000 to Rp2,300 per
litre. (RM1 = Rp2,800)
source: bernama.com
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