Due to a recent regulatory overhaul, the performance of Indonesia’s mining industry is expected to weaken, making the country less attractive to foreign investors, a report issued by global rating agency Standard & Poor’s says.
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In a bid to adjust to rising global oil prices, state oil and gas firm PT Pertamina and Shell Indonesia have raised prices of non-subsidized fuels to between Rp 9,000 to Rp 10,000 per liter as the rise in crude oil prices in the international market continued.
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Why does Indonesia — a long-time gas-exporting country — not use gas to fuel its transportation system?
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The impact of the political turmoil in the Middle East and the recent earthquake in Japan on Indonesia’s economy is relatively small, analysts claim.
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As of March 21, Indonesia was only producing 917,000 barrels per day (bpd), making the 2011 production target of 970,000 bpd a bit beyond reach.
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