Decision to hedge oil prices will be made after OPEC meeting

The government will decide whether or not it would hedge the price of Indonesian oil exports after the meeting of the Organization of Petroleum Exporting Countries (OPEC) on November 14, Minister of Energy and Mineral Resources Purnomo Yusgiantoro has said.

The minister acknowledged that using hedging approach in protecting the country?s oil exports as proposed by state oil and gas company Pertamina would mean a lot in to ensure that the oil price target of US$22 per barrel as stated in 2002 state budget could be met.

Purnomo said a number of investment banks had showed their keen interest to help the government to hedge Indonesian oil prices. ?But we will decide only after I return from the OPEC meeting,? he added. ?We need to know what OPEC will be heading for before making any decision.?

He said that he was optimistic that the oil price target of US$24 per barrel for the current budget year could be achieved although the oil prices in the international market continued to show a downward trend lately. ?It is possible because in January to September period, the oil price reached above $24 per barrel,? he added.(*)