Indonesia Rejoining OPEC: Dynamics of the Oil Importer and Exporter Countries

Authors

  • Muhammad Badaruddin Universitas Bakrie

DOI:

https://doi.org/10.21512/jas.v3i2.841

Keywords:

International Oil Trade, Oil Exporting Countries, OPEC, Global Petroleum Governance, Energy Security

Abstract

Reactivation of Indonesia’s full membership to the Organization of the Petroleum Exporting Countries (OPEC) triggered discussion surrounding global petroleum governance. The country which decided to suspend its full membership at the end of 2008, currently labelled as net oil importer. However, in OPEC terms Indonesia never really left, instead of the organization termed it as a "suspension”. Departing from the abovementioned context and perspectives, purpose of this essay is to answer the questions about the significance of the Indonesia’s membership reactivation to OPEC, and the strategic context of the reactivation in the current global oil market. In answering these questions, this article draws the dynamics of the relation of Indonesia and OPEC through the history in the first part and explores Indonesia’s interests in rejoining OPEC in the second one. In the third part, this essay will explore the possible benefit for OPEC as an organization as well as for its member countries could achieve by approving Indonesia’s request to reactivate its membership, despite its status as a net oil importer.

Dimensions

Plum Analytics

Author Biography

Muhammad Badaruddin, Universitas Bakrie

Muhammad Badaruddin is Director of the Center for Politics and Governance Studies as well as senior lecturer at Universitas Bakrie. He is lecturing Global Political Economy, State Market and Society, Politics of Energy and Natural Resources, among any other courses. He is interested to do and to supervise student’s research surrounding Emerging Powers, International Trade, Energy Security, Energy and Resources Governance, Global Political Economy of Energy and Resources. He is currently doing doctoral research on International Relations at Universitas Padjadjaran

References

Book

Guo, S., & Hua, S. (Eds.) (2007). New Dimensions of Chinese Foreign Policy New York: Rowman & Littlefield, 2007.

Chevalier, J. M. (2009). The New Energy Crisis. in Jean-Marie Chevalier, ed., the New Energy Crisis: Climate, Economics and Geopolitics, New York: Palgrave Macmillan, 2009.

Journal Article

Badaruddin, M. (2013). Indonesia-China Energy Trade: Analyzing Global and Domestic Political Economic Significance in Indonesia-China LNG Trade, Journal of ASEAN Studies, Vol. 1, No. 1, pp. 25-40.

Rosser, A. (2007). Escaping the resource curse: The case of Indonesia, Journal of Contemporary Asia, 37: 1, pp. 38-58.

Stanislaw, J. (2004). Energy Competition or Cooperation: Shifting the Paradigm. Economic Perspectives, Volume 9, Number 2, May 2004, pp. 17-20.

Wijarso, IR. (1985). Natural gas development in Indonesia. Journal of Energy, 10(2), London: Pergamon Press, pp. 231-236.

Online Journal Article

Goldthau, A., & Witte, J. M. (2010). From Energy Security to Global Energy Governance, Journal of Energy Security, March 2010, Retrieved December 20, 2015, from http://www.ensec.org/index.php?option=com_content&view=article&id=234:from-energy-security-to-global-energy governance&catid=103:energysecurityissuecontent&Itemid=358

Institutional Reports

BP. (2015). BP Statistical Review of World Energy 2015. Retrieved December 20, 2015, from http://www.bp.com/en/global/corporate/energy-economics/statistical-review-of-world-energy.html

International Energy Agency. (2015a). Southeast Asia Energy Outlook: World Energy Outlook Special Report 2015. Retrieved 03 January 2016 from https://www.iea.org/publications/freepublications/publication/WEO2015_SouthEastAsia.pdf

International Energy Agency. (2015b). Joint Ministerial Declaration on the Activation of Association. Signed during the 2015 IEA Ministerial meeting in Paris, France November 18, 2015

Pusdatin ESDM. (2014). Handbook of Energy and Economic Statistics of Indonesia 2014. Ministry of Energy and Mineral Resources of the Republic of Indonesia.

World Bank. (2014). Purchasing Power Parities and Real Expenditures of World Economies: Summary of Results and Findings of the 2011 International Comparison Program. Washington DC: International Bank for Reconstruction and Development.

Online Media Article

Ali, M. (2007, November 22). Indonesian LNG exports to fall 4 pct, maybe more. Reuters [online]. Retrieved December 21, 2015, from http://www.reuters.com/article/idUSJAK13978620071122

Ashton, G. (2015, October 01). Does Indonesia’s OPEC Membership Matter? Investopedia [online]. Retrieved December 19, 2015, from http://www.investopedia.com/articles/investing/100115/does-indonesias-opec-membership-matter.asp

Asmarini, W. (2015a, May 7). Indonesia's energy minister seeks to rejoin OPEC. Reuters [online]. Retrieved December 21, 2015, from http://www.reuters.com/article/indonesia-opec-idUSL4N0XY1TJ20150507

Asmarini, W. (2015b, November, 26). Saudi Aramco to invest more in Indonesia's oil and gas sector. Reuters [online]. Retrieved December 22, 2015 from http://www.reuters.com/article/saudi-aramco-indonesia-pertamina-idUSL3N13L42X20151126

Berndt, K. (2015, December 02). Indonesia’s return to the oil cartel will have some interesting implications. The Diplomat [online]. Retrieved December 20, 2015, from http://thediplomat.com/2015/12/and-then-there-were-13-indonesia-rejoins-opec/

Cahyafitri, R. (2015, December 16). Saudi, Iran enter race to tap into RI’s refinery market. The Jakarta Post [online]. Retrieved December 21, 2015, from http://www.thejakartapost.com/news/2015/12/16/saudi-iran-enter-race-tap-ri-s-refinery-market.html

Chilkoti, A., & Raval, A. (2015, September 8). Indonesia close to goal of rejoining OPEC. Financial Times [online]. Retrieved December 20, 2015, from http://www.ft.com/intl/cms/s/0/a7105c1e-55e6-11e5-a28b-50226830d644.html

Lawler, A., & Suroyo, G. (2015, September 8). OPEC says Indonesia to rejoin oil group after 7-year break. Reuters [online]. Retrieved December 20, 2015, from http://www.reuters.com/article/indonesia-opec-idUSL5N11E3HX20150908

Mahdi, W., & Sergie, M. A. (2015, November 9). Saudi Arabia near Agreement with Indonesia to Build Refinery. Bloomberg [online]. Retrieved December 21, 2015, from http://www.bloomberg.com/news/articles/2015-11-09/saudi-arabia-near-deal-with-indonesia-to-build-joint-refinery

Maza, C. (2015, September 10). With Indonesia’s return, OPEC evolves to stay relevant. The Christian Science Monitor [online]. Retrieved December 24, 2015, from http://www.csmonitor.com/Environment/Energy/2015/0910/With-Indonesia-s-return-OPEC-evolves-to-stay-relevant

Ministry of ESDM Web site. (2015, October 02). IEA Director, Fatih Birol, Offered Indonesia as an IEA Member. Retrieved December 21, 2015, from http://www.esdm.go.id/news-archives/general/49-general/7744-iea-director-fatih-birol-offered-indonesia-as-an-iea-member.html?tmpl=component&print=1&page=

Nugroho, H. (2010, May 12). Natural gas policy revisited, The Jakarta Post [online]. Retrieved December 21, 2015, from http://www.thejakartapost.com/news/2010/05/12/natural-gaspolicy-revisited.html

Saudi Aramco Website. (2015, November 26). PT Pertamina and Saudi Aramco Ink HoA for Refinery Upgrading Project in Indonesia. Retrieved December 23, 2015, from http://www.saudiaramco.com/en/home/news-media/news/Pertamina-project.html

Stott, D. A. (2008). Japan’s Fragile Relations with Indonesia and the Specter of China. Japan Focus [online]. Retrieved December 22, 2015, from http://www.japanfocus.org/-David_Adam-Stott/2739, last accessed at 12 July 2010.

Tan, H. (2015, December 3). Could Indonesia’s entry complicate an OPEC production cut? CNBC [online]. Retrieved December 20, 2015, from http://www.cnbc.com/2015/12/03/could-indonesias-entry-complicate-an-opec-production-cut.html

Wulandari, F. (2015, December 5). Indonesia Can Return to OPEC But Can't Escape Aging Oil Fields. Bloomberg [online]. Retrieved December 21, 2015, from http://www.bloomberg.com/news/articles/2015-12-04/indonesia-can-return-to-opec-but-can-t-escape-aging-oil-fields

Downloads

Published

2016-01-28
Abstract 1223  .
PDF downloaded 587  .