Oilfields development
Middle East Unrest Not Llikely to Affect RI Oil Supply: Evita
The ministry’s director general for oil and gas, Evita Herawati Legowo, said most of the country’s oil imports did not come from Middle Eastern countries but from Asian countries, so the unrest was unlikely to have a significant impact on the country’s oil supply.
“Our fuel imports from the Middle East only represent around 7 percent of our total fuel imports, while for crude oil the region only supplies about 12 percent of the total imports,” she said Tuesday.
However, she did say the unrest, particularly in Africa’s third largest oil producer Libya, was a bit worrisome because the country had continuously cranked up global oil prices in the past several months.
“In my opinion, intensifying riots in Libya may pose a more fearful threat to global oil prices than other countries. We hope that the conditions there will calm down and problems are solved as soon as possible,” Evita said.
State oil and gas firm PT Pertamina’s marketing director Djaelani Sutomo said Monday that Indonesia imported most of its oil from Saudi Arabia and Singapore and that to date there were no supply disturbances.
“As of today our refineries are operating normally. We keep our fuel stock [for 22 days]. We’ve encountered no problems yet,” he said.
In case the situation in the Middle East gets worse and riots spread to other oil-producing countries, Djaelani said Indonesia had made an agreement with Malaysia and Vietnam to support one other if oil shortfalls occurred.
“If problems get worse we’re committed to having each other’s back. If one of us has more oil that country will help the one having difficulties finding oil,” he said.
Political tension in the Middle East has caused a sharp increase in global oil prices. On the New
York Mercantile Exchange crude was trading at US$97.36 on Tuesday, a jump from the $90 in early January.
To adjust to the global oil price rally, Pertamina once again raised the price of non-subsidized fuel beginning on March 1.
According to the company’s official website, Pertamax fuel currently sells at Rp 8,100 per liter in Greater Jakarta, an increase of Rp 150 per liter from the previous price set on Feb. 15, while Pertamax Plus is now priced at Rp 8,550.
Since popular unrest exploded in the Middle East the price of non-subsidized fuel has climbed as well. In mid December of last year, the price of Pertamax was only Rp 7,050 per liter before jumping to Rp 7,900 in January of this year and Rp 7,950 in February.
Pertamina spokesperson Mochamad Harun said that increased non-subsidized fuel prices might lead to a rise in subsidized fuel consumption. Premium fuel, which is subsidized, is now priced at only Rp 4,500 per liter.
Indonesia, a former member of the Organization of Oil Exporting Countries, is one of the largest oil producers in Asia. But, the country still imports oil in order to meet the high domestic demand.
