RI's oil and gas trade surplus likely to rise 51 percent

Indonesia's oil and gas trade surplus is expected rise 51% to US$9.8 billion this year, from $6.5 billion last year, due to rising oil prices globally, the Dow Jones Newswires reported citing Bank Indonesia as saying.

The central bank said the projected rise in the oil and gas trade surplus is expected to boost foreign exchange reserves to $40.5 billion by the end of the year, from $36.0 billion last year.

"Every $1/barrel increase in oil price globally will boost (Indonesia's) foreign exchange reserves by $130 million," Bank Indonesia's Deputy Governor Hartardi Sarwono said in a press release. "Under such conditions, Bank Indonesia is not worried with rising oil prices globally."

Indonesia, the only Southeast Asian member of the Organization of Petroleum Exporting Countries, is a net oil importer due to rising local consumption of petroleum products as crude oil output declines. But the country is one of the world's largest natural gas exporters. Rising oil prices usually push natural gas prices higher as well.

The local foreign exchange market is expected to see $6.9 billion in net foreign exchange supply this year, Bank Indonesia said. The government is expected to receive a total of $7.5 billion in net foreign exchange supply, whereas net foreign exchange demand from local companies is expected to reach $595 million.(*)