President Yudhoyono - Indonesia Considering Leaving OPEC, Since It's Now A Net Oil Importer - BBC

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Opec member Indonesia is considering leaving the oil cartel to concentrate on domestic production, the country's president has said. Levels of oil production from its ageing wells are declining, making the country a net importer of oil when crude prices are at record levels. It has had to cut subsidies on domestic fuel to avoid a massive budget deficit.

Some analysts have said the oil exporting group's reluctance to boost production has kept prices high. Oil analyst Kurtubi said that - as an oil importer - Indonesia's concerns clashed with those of other Opec members.

" interests now are different. We want oil prices to come down as high oil prices put pressure on our budget. But exporters want a reasonable or even high price since it is their main source of revenue." Declining investment in Indonesia's oil infrastructure has seen its output drop below a million barrels a day from about 1.5m in the mid-1990s.

President Susilo Bambang Yudhoyono said the government had begun talks as to "whether we should continue to stay with Opec or withdraw our membership".

EDIT

http://news.bbc.co.uk/2/hi/business/7384968.stm

[phantom power]

1. wow.