Indonesia to cut November crude export

Indonesia will reduce crude oil exports by 110,000 barrels a day in November, as it will process the crude oil into petroleum products domestically, a government official said Thursday.

Indonesia will also reduce the amount of crude oil to be imported for processing into petroleum products at the country's refineries, Oil and Gas Director General Iin Arifin Takhyan of the Mines and Energy Ministry said.

"This will result in a lower cost to produce petroleum products," Iin added.

The measure is likely to be a part of the government's efforts to reduce soaring cost of fuel subsidies in the state budget. The government is preparing to hike domestic fuel prices later this year to cut the cost of providing subsidies.(*)