Indonesia to rejoin OPEC

JAKARTA, October 16, 2015 – OPEC has notified Indonesia that its request to rejoin the cartel will be approved in December.

Indonesian authorities made the request at a ministerial meeting of the organisation in June.

The country dropped out of OPEC in 2009 as exports declined due to a rise in homegrown demand and a fall in production with lagging investment.

The government of Indonesia is seeking to engage in direct long-term oil supply deals rather than continue its present purchases through third-party vendors.

Despite rejoining OPEC, the country will remain a net importer of petroleum and liquids. It will increase the cartel’s output by around 3 percent.

Indonesia’s oil production has been in decline for decades. In 2014, the country had an output of 852,000 barrels of oil per day, compared to 1.13 million barrels in 2004 and 1.59 million barrels in 1994.

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