Illustration (Photo:Medcom.id/M Rizal)
Illustration (Photo:Medcom.id/M Rizal)

Indonesia's Oil Industry to Evade Imports despite Plummeting Crude Prices

English Energy (en)
Antara • 13 Mei 2020 21:03
Jakarta: Indonesia's oil and gas upstream industry will continue production and steer clear from imports despite the plummeting global crude oil prices.
 
Executive Director of the Indonesian Petroleum Association (IPA) Marjolijn Wajong noted in a statement here on Wednesday that state-run oil firm Pertamina and other oil and gas industries will continue production regardless of the current challenging situation amid the covid-19 pandemic.
 
"It would be impossible for Pertamina and contractors of the cooperation contract (KKKS) to turn to imports only to get a cheaper price. Production may decline owing to various impediments arising from the covid-19 pandemic. Nonetheless, the oil and gas industry must continue operations," he noted.

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The IPA executive director acknowledged some issues that might crop up including delayed distribution, but the industry must continue operations since it has a wide impact on the national economy.
 
Wajong expounded that operations of the oil and gas industry will help supporting industries, including shipping, valve, pipe, and pump providers, as well as other service industries to survive.
 
"This is since it would be impossible for us to operate without the supporting industries. Hence, this will keep the economy running, and the people will still have their jobs. It has a broad multiplier effect," he pointed out.
 
"Hence, we should not only take into account the declining oil prices to stop production and switch to imports. We see it in a broader perspective. We do not want to see mass layoffs," he added. (antara)
 

(WAH)
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