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Jakarta Post

Unpleasant realities in Indonesian oil industry

  • Rahmad Pribadi

Jakarta   /   Sun, January 20 2013   /  10:13 am

Indonesia needs to make a sharp political turn to save the future of its oil and gas industry. Politicians and policy makers must be willing to accept unpleasant realities and move away from the fantasy they are living in. The reality is, our oil industry has been in trouble for more than a decade and, as a result, Indonesia has become an oil-importing country.

Since 1995, Indonesian oil production has been in sharp decline. Our oil production today is only about 55 percent of 1995’s production rate. In contrast, during the same period, global oil production has surged.

The same can be said for oil reserves. Since 1991, Indonesia’s proven oil reserves have fallen much faster than any other country in the region. Indonesia’s proven oil reserves have fallen by 1.9 billion barrels since 1992, whereas our closest neighbor, Malaysia, has raised its proven reserves by 2.2 ...