Indonesia will never become an observer in OPEC: Purnomo

Minister of Energy and Mineral Resources Purnomo Yusgiantoro said that Indonesia could not change its current status as member of the Organization of Petroleum Exporting Countries (OPEC) into an observer status, Investor Daily reported on Thursday.

"A country with an observer status can apply for full membership, but not the other way around. It has never happened that an active member changed its member status into an observer," he said.

Meanwhile Rachmat Sudibyo, the chairman of a government team assigned to assess Indonesia's current status in OPEC, said that lowering the membership status into an observer would not give any benefits to Indonesia. "The team only has two options - retaining the membership status or totally quit," said Rachmat.

Indonesia is considering dropping its membership status in OPEC not only due to a continued decline in its oil production but also due to the high financial obligation it has to meet. As member, Indonesia has to pay a membership fee of US$1 million a year, in addition to travel spending needed to attend the organization's regular meetings.

In its recommendation draft, the ministry of foreign affairs offers three options regarding the future status of Indonesia in OPEC -- retaining its membership, totally quit or changing the status as an observer.

The ministry indicated that changing status into an observer might be better for Indonesia, because with such a status, Indonesia can still gain the economical and political benefits from the organization without having to pay membership fee. (*)