Indonesia mulls possibility of returning to OPEC

By Thomas R. Sembiring

The government is considering the possibility of Indonesia becoming an observer at the Organization of Petroleum Exporting Countries (OPEC), Minister of Energy and Mineral Resources Sudirman Said stated.

He said that being active in OPEC will benefit Indonesia in helping to get better access to crude supplies. "As a buyer, we may not stay too far away from the sellers because if we can regularly meet them, we will be closer to the market," the minister explained.

He said that the proximity to the market will also eliminate the role of rent seekers in the country?s oil import.

Sudirman pointed out that Indonesia has been offered to again play an active role in OPEC although the country has already become a net importer.

Indonesia will apply for an observer status at OPEC in June 2015, Director General of Oil and Gas at the Ministry of Energy and Mineral Resources, I. Gusti Nyoman Wiratmaja Puja said.

In January 2009, Indonesia decided to freeze its OPEC membership, considering that it was no longer a big exporter and had even become a net importer.

Editing by Reiner Simanjuntak