Jumat 07 Nov 2014 21:43 WIB

Govt to increase crude imports directly from producers

Sudirman Said
Foto: dokpri
Sudirman Said

REPUBLIKA.CO.ID, JAKARTA -- The Indonesian government is to increase crude oil imports under a direct purchase scheme to ensure supplies to domestic refineries in the long run, Energy and Mineral Resources Minister Sudirman Said said.

According to President Joko Widodo's directives, the government will find as much direct crude supplies as possible from producers, Sudirman said here on Friday (7/11).

"It is difficult to raise domestic oil production in the near future so it is important to ensure crude supplies," he said.

The government also does not want to depend on certain oil producing countries and thus, it will find as many oil suppliers as possible, he added.

"The more oil suppliers, the healthier the oil prices will be," he said.

Just in the past couple of weeks, the government signed a contract with an Angolan oil producer Sonangol, he said.

In addition, the government has also been exploring the possibility of crude supplies from Iran.

"Iran has sent its delegation to me. They want to renew the contract we signed before," he said.

At the meeting the Iranian delegation led by Iranian Ambassador to Indonesia Muhmaoud Farazandeh invited the minister to visit Iran.

Sudirman expressed optimism that both countries could realize their long-delayed oil contract soon.

He said the government is also seeking to import crude oil from Russia. "For Russia, I want to ensure that we will have a direct channel with the decision maker there," he said.

Iran, Angola and Russia are large oil producers which have large deposits, he pointed out.

He neither confirmed nor denied an allegation that National Democratic (Nasdem) Party chief and businessman Surya Paloh is behind the oil contract with Sonangol.

"Don't look at who is behind it but think of what is the benefit for the public. If Mr Surya Paloh is able to make this business sound and bring about benefit to the state, we will realize the contract," he said.

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