JAKARTA, May 29 (Xinhua) -- The Indonesian government
plans to quit membership in the Organization of Petroleum Exporting Countries
(OPEC) because of years of declining in production and investment and the fact
of becoming a net oil importer.
Minister of Energy and Mineral Resources Purnomo
Yusgiantoro on Wednesday said that the government would sign a declaration
confirming the departure very soon. He also expressed dissatisfaction on surging
oil prices these years.
Oil production in Indonesia in 2008 was revised down
from 1,034,000 barrels to 926,000 barrels per day, far below the quota of
1.3million barrels set by OPEC, which forced Indonesia to quit.
Although quitting OPEC can save Indonesia 3.1 million
U.S. dollars every year in membership fee, the quit means that Indonesia will
lose its vote at OPEC to influence global oil prices when in crucial times.
So, Yusgiantoro also said that if one day Indonesia
come back as a net oil exporter again, it will rejoin OPEC. But Indonesia has to
boost its oil production at first.
Indonesian government raised oil prices by 28.7
percent on May 24 with the pressure of soaring international oil price, which
has triggered demonstrations from university students and invited critics from
political and religious elites.
If the problem of energy could not be solved in time,
it will be difficult to keep political stability in Indonesia.
As domestic consumption rises and international
prices are kept at high level, Indonesia has no choice but to re-discover its
abundant oil and gas riches.
To quit OPEC may be a wake-up call for Indonesia to
improve investment, upgrade poor infrastructure and reform its weak legal system
and red tape to absorb more foreign investors.
Vice President Jusuf Kalla said here Thursday that
his country is determined to become a major oil exporter again in five years by
means of properly explore in oil fields and save domestic fuel consumption.
On the same day, the Ministry of Energy and Mineral
Resources kicked off the tender for 25 onshore and offshore oil and gas
production areas dispersed from the western island of Sumatra to easternmost
Papua in its efforts to lure more private investment.
It can be seen as the first stage of a series of
tenders in the energy sector by Indonesia. The remaining question is, will the
only member of OPEC in Asia-Pacific region turn back in just 5
years?