Indonesia to lobby other OPEC members to lower oil prices

Indonesia will ask other members of the Organization of Petroleum Exporting Countries (OPEC) to increase production in a bid to help prevent a further increase in the oil prices during the organization?s upcoming meeting, next week, Koran Tempo reported on Friday.

Minister of Energy and Mineral Resources PurnomoYusgiantoro said in Jakarta on Thursday that Indonesia would try to convince other OPEC members on the need to lower the crude prices.

According to Purnomo, a further increase in the crude oil prices would also affect Indonesia, which had also imported a larger part of its fuel needs. ?If the price is too high, it will result in a significant increase in the fuel subsidy that has to be financed by the government,? the minister was quoted as saying by the newspaper following a meeting with President Susilo Bambang Yudhoyono.

The price of crude oil in the international market has reached about US$ 50 per barrel. Analysts estimate that the crude price could further increase to US$ 80 per barrel within the next few months.

OPEC will soon meet to discuss the latest development in the oil prices. The president of the organization has said that he would propose an increase in the production quota during the meeting in a bid to help lower the rising oil prices. (*)