Indonesia's oil reserves will last in 20 years
Monday, October 9 2000 - 05:00 AM WIB
Indonesia's proven and potential oil reserves currently stand at 9.7 billion barrels of crude, and this amount would last in the next 20 years. Thus, if no new significant reserves are found, Indonesia will likely become a net oil importer after that period, according to former secretary general of the Organization of Petroleum Exporting Countries (OPEC) Subroto.
Speaking at an oil and gas industry seminar in Balikpapan, Subroto said that oil exploration and exploitation in the country had been going on for the past 100 years, since the Dutch colonial time.
Indonesia, therefore, should explore for more new reserves and promote efficiency in the people's oil and gas consumption and diversify energy sources. Otherwise, Indonesia would soon become a net oil importer.
"Our oil reserves are depleting, at the same time, our people's consumption level tends to increase, affected by the rate of population growth, and at the end, our oil reserves will dry," he said.
Subroto, former mines and energy minister, predicted that the oil and gas sector would contribute about US$13 billion for the year 2000 state budget, or 27 percent of the total state budget volume. Subroto also commented the implementation of laws No. 22/1999 and 25/1999 on local autonomy and fiscal balance. He noted that the two laws could not yet be implemented unless the government provided supporting regulations.
He added that there were still debates about who should control the oil and gas sector, whether the central government or local administrations.
In the same occasion, the speaker of the Kutai district Council, Bachtiar Effendi, noted that the control of the oil and gas sector must be with local administrations for the benefits of local people. He contended that the sector had been controlled and exploited by the central government for so long.
Subroto noted that there were both strong arguments on who should control the oil and gas sector, whether the central government or local administrations. He warned that local administrations could not claim that oil and gas operations in their areas belong to them. Instead, they belong to the whole nation.
Therefore, he suggested that the central government and local administrations sit together and negotiate over the dividend of the oil and gas income. (*)