Indonesia's oil deficit US$3.57 billion, what to do?
Just two days before 109 talking heads file lawsuit against Indonesia government, ExxonMobil, and Pertamina protesting the oil rich Cepu project agreement, Central Bureau of Statistics (BPS) announced the first half performance of the country's international trading. Most journalists were impressed with strong export growth and run that as headlines. None paid attention on the country's oil deficit at record high of US$3.57 billion.
The deficit is clearly higher than US$3.3 billion in the same period last year despite government's effort to cut subsidy (and subsequently curb domestic consumption) with almost 100% price hike in October 2005. Months after the price hike, government claimed lower import on decreasing domestic consumption.
According to BPS, Indonesia exported US$5.38 billion worth of oil (crude & refined) in first half 2006, increased 15.7%, while import grew by 12.5% to US$8.95 billion. According to the agency, Indonesia is still in the position of net exporter of crude oil at US$200 million. But for refined products (gasoline, diesel, kerosene etc), Indonesia's deficit increased significantly by 19.5% to US$3.81 billion. Why?
Well, increasing world price for sure is the reason. But this is also because the country failed to boost refinery investment. No new refinery built in more than 10 years.
Efforts to promote investment in the sector managed to get some commitments. But none is materialized.
Read my previous posts for backgrounds:
1) Tax holiday for new refinery projects
2) Pertamina might ignore Sinopec
3)Iran to invest US$2 billion in refinery
4) Djoko Tjandra's big leap into oil refinery
READ MORE!!!
The deficit is clearly higher than US$3.3 billion in the same period last year despite government's effort to cut subsidy (and subsequently curb domestic consumption) with almost 100% price hike in October 2005. Months after the price hike, government claimed lower import on decreasing domestic consumption.
According to BPS, Indonesia exported US$5.38 billion worth of oil (crude & refined) in first half 2006, increased 15.7%, while import grew by 12.5% to US$8.95 billion. According to the agency, Indonesia is still in the position of net exporter of crude oil at US$200 million. But for refined products (gasoline, diesel, kerosene etc), Indonesia's deficit increased significantly by 19.5% to US$3.81 billion. Why?
Well, increasing world price for sure is the reason. But this is also because the country failed to boost refinery investment. No new refinery built in more than 10 years.
Efforts to promote investment in the sector managed to get some commitments. But none is materialized.
Read my previous posts for backgrounds:
1) Tax holiday for new refinery projects
2) Pertamina might ignore Sinopec
3)Iran to invest US$2 billion in refinery
4) Djoko Tjandra's big leap into oil refinery
Labels: ExxonMobil, Pertamina
READ MORE!!!
posted by yosef at 11:43 PM
2 Comments:
PERTAMINA, being the state owned company in Oil and Gas Mining, really was used as Cash Cow by the government... especially during 32 years Suharto Regime...
Why on earth PERTAMINA could build lots of Refineries... what have they done for the past 32 years? Only Balongan? Country this size relies only one one single refinery?
C'mon guys...
Beacause at this time(32year) oil is cheap arount $ 10 -$ 15
and Indonesia exporter
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