Indonesia looks to Iran to drive economy: energy minister
October 18, 2015 - 0:0
TEHRAN - Iran has high potential to help improve economic growth in Indonesia, especially in the fields of oil, gas and electricity, the Indonesian Minister of Energy and Mineral Resources Sudirman Said says in an exclusive interview with the Tehran Times.
Said was visiting Iran along with Foreign Minister Rento Marsudi on Wednesday and Thursday.
“Our visit this year is actually to make the opportunity materialized. It is my second visit [to Iran], even my third meeting with the minister of oil Mr. Zanganeh. I think that the meeting is more and more giving the concrete opportunity to be materialized,” Said explained.
“We discussed about the opportunity to supply the crude and the products and also the opportunity to joint cooperation in developing a refinery in Indonesia. And our team has been discussing with the team of National Iranian Oil Company (NIOC),” the minister stated.
Referring to his country’s agreement with Iran for a long-term oil supply by the Islamic Republic, he said: “That is one of the objectives of our visit to follow up the agreement; I think both Iran and Indonesia will have benefit if we could engage in long-term supply agreement. This is something that we are now working within Pertamina, the national oil company, and also with the National Iranian Oil Company”.
About the agreement between Iran, China and Indonesia on building a refinery on the East Java Island, Widhyawan Prawiraatmadja, the special advisor to Said, said: “Because Indonesia is in growing need and our capacity has not been added over the past twenty years, this is the time to have a new additional refining capacity. It is imperative that Indonesia will need feedstock; so we will have to rely on supply from other countries’ resources such as Iran, and Iran will always be considered as one of the potential suppliers.”
“I think we look for all kinds of options and one you said [the issue of refinery] is one of the options,” Prawiraatmadja said.
On Indonesia’s return to OPEC, the country’s minister of energy said: “The role of Iran in OPEC is of course very important; because it is one of the large producers and our coming back to OPEC is also supported by Iran.”
“I think it’s time for Iran to support us. But, for Indonesia, I think coming back to OPEC means to engage with the producing countries, which Indonesia is in their support, because we still have large gap in terms of consumption. We consume much more than we produce; so, engaging with the producing countries is good to secure the supply in Indonesia,” he added.
--------Indonesia looks to Iran as supplier of LPG-------
Elsewhere in his interview with the Tehran Times, the official said: “We are in need of LPG [liquefied petroleum gas]. We look for Iran to support us in supplying the LPG needs.”
Indonesia is in serious need of bitumen for its power sector.
Asked if the country has any plan to import bitumen from Iran, the minister stated: “I guess actually we’ll also have future needs for bitumen much more than what we need now; so I think we will import it from Iran.
“Because we are now building infrastructures in huge projects, I think it is an opportunity for Iran to supply bitumen to Indonesia.”
Said went on to say: “As minister of energy, I’m very impressed with Iran’s development of power sector, especially in hydro, and it is something that we need to work together in Indonesia”.
The minister also said Iran can cooperate with Indonesia in the mining sector if it has the technology.
“Our mining sector is in development. We are pushing through the policy to develop downstream industry; so if Iran has technology to cooperate, we will engage with the Iranian companies.”
On the prospect of bilateral economic ties now that the economic sanctions against Iran are set to be lifted, the minister explained: “I learnt from our colleagues in Iran that Iran is a country that will be growing soon after the sanctions are lifted and we will have development of economic relations in the fields like auto parts, textile and food that will be our opportunities. I think it is time for Indonesian businessmen to explore that opportunities, so that besides energy, my sector, other sectors can come here and develop cooperation with Iranian businessmen”.
--------We plan to organize President Joko Widodoin’s trip to Iran early next year -------
He added, “After the meeting of President Rouhani and President Joko Widodoin in April after the Asia-Africa Conference, we are committed to explore and expand the cooperation between the two countries. I think we plan to organize a trip of President Joko Widodoin to Iran early next year, so this [visit] is part of the preparation actually.”
He said that the next Indonesian delegations will be coming to Iran to explore broader fields of economy.
“Regardless the sanctions issue, I think we always have intention to strengthen the cooperation. Iran and Indonesia have very long time brotherhood; so with sanctions lifted it is actually the push to further development of the cooperation.”
The minister noted, “We always intend to keep the cooperation stronger and with the current situation [following the Iran nuclear deal], I think the relationship keeps going better and better.”
--------Indonesia and Iran are proud of their relationship-------
For his part, Dr. Alwi Shihab, the Indonesian president’s envoy to the Middle East and the OIC, told the Tehran Times: “I think relation between Iran and Indonesia is something that we both countries are proud of. We have been in close contact, close relation and we don’t have obstacle. Now, it’s the time to optimize especially economic opportunities from both countries. We are amazed by the development of Iran despite the sanctions, and we would like to see Iranian businessmen, Iranian projects feasible in Indonesia.”