Indonesia may change its status in OPEC as an observer

Indonesia, an active member of the Organization of Petroleum Exporting Countries (OPEC), many change its membership status in the organization as an observer to avoid membership fee payment which reaches US$1 million a year, Kompas reported on Wednesday.

The proposal to change the country's status in OPEC is one of three options recommended by the ministry of foreign affairs to the government. The other options include to maintain its membership until the country is considered no longer qualified as a member or to totally quit the organization.

The ministry of foreign affairs, which has been assigned to assess the membership status of Indonesia in OPEC, is waiting for more inputs from the ministry of energy and mineral resources before submitting the recommendation to the President.

Indonesia, formerly one of the world's major oil exporters, is considering changing its membership status in OPEC due to continued depletion of its oil production. At present, the country has been considered as a net importer because its oil imports have exceeded its exports. (*)