Fuel Price Rise and Indonesia to quit OPEC
Still feeling the the hype of national fuel price awakening? Well, just got a shocking news from Majari Magazine Oil and Gas Info RSS aggregator:
Quoted from AME Info, the ultimate Middle East business resource:
“Indonesia, the only OPEC member in South East Asia will leave the organisation today. The announcement comes as the country’s annual output stands at 49% of its 1970s peak and industrial disputes have slowed new developments. The country now imports close to 30% of its domestic oil needs.”
According to OPEC Official Website, The Organization of the Petroleum Exporting Countries (OPEC) is a permanent, intergovernmental Organization, created at the Baghdad Conference on September 10–14, 1960, by Iran, Iraq, Kuwait, Saudi Arabia and Venezuela. The five Founding Members were later joined by nine other Members: Qatar (1961); Indonesia (1962); Socialist Peoples Libyan Arab Jamahiriya (1962); United Arab Emirates (1967); Algeria (1969); Nigeria (1971); Ecuador (1973) – suspended its membership from December 1992-October 2007; Angola (2007) and Gabon (1975–1994).
The BBC’s Lucy Williamson in Jakarta says the decision is not unexpected, since Indonesia’s production – largely concentrated in northern Sumatra – has stagnated and it has precious few sources of proven new reserves. But she adds that ministers are leaving the door open for it to return, should any future discoveries of oil transform the state of its industry.
Quoted from BBC UK:
Indonesia’s exit will not affect the amount of oil it produces or imports.
“I don’t see any substantive loss, other than on the prestige,” said Victor Shum, from energy analysts Purvin & Gertz.
“They really have not had much influence within OPEC.”
Suddenly a song from Ello, Pergi Untuk Kembali, popped up in my mind:
“Aku (Indonesia) akan pergi meninggalkan dirimu (OPEC), menyusuri liku hidupku,
janganlah kau bimbang, dan janganlah kau ragu, berikanlah senyuman padaku..
Selamat tinggal kasih, sampai kita juga lagi, aku pergi takkan lama..
hanya sekejap saja, ku akan kembali lagi, asalkan engkau tetap menanti..”
A few months ago, I have a question about this in my mind; putting it into discussion with some friends at my campus.
“How can Indonesia still be a member of OPEC considering the conditions we are facing now?”
Well, I guess I’ve just have my question answered.
Come on, Indonesia.. Promise us you’ll be back!
Image was taken from here.