Indonesia’s Economy Is Impressive, And So Is Its Oil Industry

Indonesia’s strong economy is indicative of a healthy business ecosystem in the country. Indonesia is now the biggest economy in South East Asia, surpassing Malaysia and Thailand. Indonesian traded companies reached a cumulative value of $416 billion this week and has exceeded the other countries a region, a trend that has been going on for over a month now.

Indonesia’s state owned Pertamina has set an ambitious target to increase oil production by 30,000 barrels per day per block as a part of its upstream development agenda. For this, it is expected to invest $5.31 billion in 2016, 72% of which will be to fund its upstream business. Partamina has signed an agreement with National
Iranian Oil Company to install 2 Oil and Gas blocks in Iran. This deal is expected to strengthen ties between the two countries, especially after Pertamina bought 600,000 tonnes of refrigerated LPG from NIOC in May 2016.

Indonesia is installing 4 refineries, each with a capacity of 350,000 barrels per day to reduce its dependency on import. After having re-joined the Organization of Petroleum Exporting Countries, Indonesia imports about 900,000 crude barrels per day. The country targets 819,000 barrels per day crude oil production(oil lifting) in 2016. 

On the other side, the country is not looking at aggressive oil production in current times of low oil prices.

Source: News