Indonesia is seeking a suspension of its OPEC membership rather than a complete withdrawal, the country’s OPEC governor said on Thursday, moderating a previous call by the country’s energy minister to quit the oil cartel.

Informal discussions have taken place with Organization of the Petroleum Exporting Countries officials but Indonesia has not officially notified the secretariat and remains a member until the end of the year, Maizar Rahman told reporters.
“Let’s not say withdrawal. We would like to have a suspension,” Rahman said on the sidelines of the annual meeting of energy ministers from the Association of South East Asian Nations. Oil minister Purnomo Yusgiantoro said in late May that Indonesia would leave OPEC because as a net oil importer, it is not happy with high oil prices.
Indonesia, a member since 1962, is the only Asian country in OPEC, giving the country some regional clout and prestige. “Being part of OPEC helps. You can discuss things with people sitting at the same table as you, instead of going through the official institutions,” said Rahman who is in Bangkok to present an OPEC update to ASEAN energy ministers.
At the meeting, Rahman will repeat the line that OPEC was not to blame for the prices that have rallied to records near $150 before falling to around $119 a barrel.
“OPEC is producing enough oil. The high price is not due to OPEC. We must look elsewhere for the causes of volatility,” Rahman said.
“OPEC output currently stands at 32.3 million barrels a day, well above the forecast average level of demand for its oil for the whole of 2008, of 31.9 million barrels a day. Supply is, therefore, greater than demand!” a draft of the presentation said. OPEC has ramped up output well above quota levels over the past few months, in response to record-high prices.
(Source: Economic Times)