Oil exports set to drop but imports rise

Oil exports set to drop but imports rise

JAKARTA (JP): State-owned oil firm Pertamina estimates that Indonesia's oil exports will decline next fiscal year while oil imports will soar.

The company's president, Faisal Abda'oe, told a hearing of the House of Representatives' energy commission yesterday that Indonesia's exports of crude oil and condensate are forecasted to decline to 286.6 million barrels, valued at US$4.73 billion, next fiscal year from the projected 300.9 million barrels at $5.1 billion this fiscal year, which will end next month.

Abda'oe noted that the projection is based on a crude oil price of $16.50 per barrel for next year, while the average price of crude for the current fiscal year is $16.96 a barrel.

Japan imports 43.2 percent of the crude and condensate, while exports to China are estimated at 14.5 percent, South Korea 10.2 percent, the United States 8.2 percent, Singapore 7.9 percent and Australia 7.8 percent.

Exports of oil products next fiscal year are expected to reach 66.1 million barrels worth $1.1 billion, down from the projected 77.6 million barrels worth $1.3 billion for the current fiscal year.

Imports of crude oil are estimated to reach 62.4 million barrels valued at $1.1 billion next fiscal year, up from the projected 59.1 million barrels at $1.07 billion this fiscal year.

The crude oil imports come from the Middle East, Malaysia, Australia, China, Brunei, Vietnam and a number of African countries.

Imports of oil products are predicted to soar to 64.5 million barrels, worth $1.34 billion next fiscal year from 53.7 million barrels worth $1.18 billion this fiscal year.

Countries supplying oil products to Indonesia include Singapore, Malaysia, Australia as well as Middle East and European countries.

In addition to imports of crude oil and oil products, Indonesia is projected to import $4.05 billion worth of services in the oil sector and another $627 million in capital goods related to the oil industry.

"The oil industry is a technology-intensive industry, and thus imports of both services and goods in the oil sector are still needed," Abda'oe said, referring to the commission's concern over the high import content in the oil industry.

Contrary to the increasing oil imports, the domestic consumption of oil fuel is projected to decrease by almost 50 percent this fiscal year to 20.6 million kiloliters from 41.2 million kiloliters last fiscal year.

The domestic consumption of fuel by economic sectors has experienced declines, thanks to the government's energy diversification program.

The transportation sector is projected to consume 9.3 million kiloliters of fuel this fiscal year, down from 19.2 million kiloliters in 1994/1995; the industry sector is to consume 5.2 million kiloliters, down from 9.7 million kiloliters; the households are to consume 4.3 million kiloliters, down from 8.9 million kiloliters; and the power generation sector is expected to consume 3.7 million kiloliters, down from 3.4 million kilo liters. (rid)