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Reasons for Indonesia's Withdrawal from OPEC Deemed Vague, Why?

02

Dec

Reasons for Indonesia's Withdrawal from OPEC Deemed Vague, Why?

The decision was questioned because the government revealed the reason for the withdrawal because the OPEC decision did not comply with the [...]

Reasons for Indonesia's Withdrawal from OPEC Deemed Vague, Why?. The decision was questioned because the government revealed the reason for the withdrawal because the OPEC decision did not comply with the assumption of oil production in the 2017 Budget. In the 2017 Budget, national oil production was only cut by 5,000 bph.
“If the reason is due to the budget, well, it becomes very vague. I mean how much was it compared to, for example, our image and our credibility declining among OPEC members?” energy observer and Director of Indonesian Resources Studies Marwan Batubara told Kompas.com, Jakarta, Thursday (1/12/2016) night.
In fact, according to Marwan, Indonesia would gain many benefits if it remained in OPEC. Because the OPEC decision to cut oil production by 1.2 million bph will lead to an increase in world oil prices.
It is predicted that the prices of Indonesia's leading commodities will also increase along with the rise in world oil prices. So far, he said, the plunge in commodity prices has been due to plunging oil prices.
With the recovery in oil and commodity prices of Indonesia's key exports, Marwan is confident that state revenues will increase.
“The government should have a strong commitment so that these prices will recover and compensate for the lack of revenue in the budget due to the reduction in oil production of 37,000 barrels,” said Marwan.
Disproportionate
Apart from the budget reason, Indonesia's decision to withdraw from OPEC was also considered disproportionate to the good relations between oil exporting countries.
After all, Indonesia had only recently returned to become a member of OPEC in December 2015. Marwan remembers very well the reason for the government to re-enter OPEC in December 2015.
At that time, the government had stated that there are many benefits to be gained by joining the organization, and one of them is the benefit of lobbying among members.
”Is it proportionate to the good relations among OPEC members from whom we are very dependent for oil imports? Previously, when we re-entered, it was an honor from the members because we were accepted. But as soon as there is a small problem, we become inconsistent,” said Marwan.
In fact, the government should consider various factors comprehensively before deciding to withdraw from OPEC.
These factors include Indonesia's image in the eyes of OPEC countries and in the broader economic scope related to Indonesia's export commodities.
OPEC Countries Agree to Cut Oil Production

Author
: Yoga Sukmana

Editor
: Aprillia Ika

http://bisniskeuangan.kompas.com/read/2016/12/02/114500726/alasan.indonesia.hengkang.lagi.dari.opec.dinilai.sumir.kenapa.

Trump: Companies Leaving U.S. Will Be Taxed

02

Dec

Trump: Companies Leaving U.S. Will Be Taxed

The threat came as Trump announced a deal with air conditioner manufacturer Carrier to keep jobs in the US. "Companies are not going to leave the [...]

Trump: Companies Leaving U.S. Will Be Taxed. The threat came as Trump announced a deal with air conditioner manufacturer Carrier to keep jobs in the US.
`Companies are not going to leave the United States without consequences. Nor does it have to be,` Trump said at the Carrier factory in Indianapolis, as quoted by Channel News Asia on Friday (Dec 2, 2016).
Trump said a company could move plants from state to state or negotiate deals with different states. But it would be difficult for them to leave the US.
During the campaign, the billionaire threatened to impose tariffs on companies that shipped jobs to Mexico or Asia, where wages are lower.
He had repeatedly singled out Carrier, which is part of conglomerate United Technologies Corporation (UTC).
Trump said he had pushed the company not to move thousands of jobs to Mexico.
If Carrier left anyhow, Trump said, his administration would impose a large tariff on Carrier products shipped back to the US.
`I called up Greg (Hayes, the head of UTC) and I said this is a very important thing, we have to do something because you are moving a lot of people and you have to understand that we can't have this happen anymore in the US,` Trump said.
Carrier was offered incentives of US$7 million over 10 years in exchange for guarantees on workforce levels, job retention and capital investment.
The deal will save about 1,100 jobs from being transferred out of the US. It is seen as an extraordinary intervention by a president-elect in industry.
Trump supporters hailed it as part of a vital jobs plan.

Writer
: Sakina Rakhma Diah Setiawan

Editor
: Aprillia Ika

Source
: channel news asia,

http://bisniskeuangan.kompas.com

01

Dec

Oil surges on OPEC deal

The Organization of the Petroleum Exporting Countries (OPEC) has agreed to cut output by around 1.2 million barrels per day (bpd) to 32.5 million [...]

Oil surges on OPEC deal. The Organization of the Petroleum Exporting Countries (OPEC) has agreed to cut output by around 1.2 million barrels per day (bpd) to 32.5 million bpd, effective Jan. 1, for six months, Xinhua reported.The production cut is the first since 2008. OPEC will meet again in May 2017 to consider extending the agreement for another six months.The cut is being coordinated with non-OPEC producer Russia, which has pledged to reduce production by 300,000 barrels per day.It is the first time since 2001 that Russia has joined OPEC in a production cut. The country has long resisted output cuts and has been pumping at record highs in recent months.Markets rallied on the release of details of the OPEC deal.US benchmark West Texas Intermediate (WTI) crude for January delivery jumped US$4.21 to settle at $49.44 a barrel on the New York Mercantile Exchange. The crude futures contract surged nearly 10 percent during intraday trading, its largest one-day move since February.Meanwhile, global benchmark Brent North Sea crude for January delivery rose $4.09 to end at $50.47 a barrel on the London ICE Futures Exchange.Bolstered by the rising oil prices, the energy sector surged 4.82 percent, the biggest gainer among the 10 S&P 500 sectors.Shares of energy giants Chevron Corporation and Exxon Mobil Corporation gained 2.03 percent and 1.63 percent, respectively.The surge in oil prices also contributed to a stronger dollar. The greenback rose against other major currencies as it fueled investors views of higher inflation in the coming months.  (UU.A026/A/A026/A026)
Editor: Aditia Maruli
http://www.antaranews.com/berita/599204/harga-minyak-melonjak-didorong-kesepakatan-opec

Minister Jonan announces Indonesia temporarily suspends membership in OPEC

01

Dec

Minister Jonan announces Indonesia temporarily suspends membership in OPEC

The press release from the Ministry of Energy and Mineral Resources in Jakarta on Thursday stated that the decision for the temporary suspension was [...]

Minister Jonan announces Indonesia temporarily suspends membership in OPEC. The press release from the Ministry of Energy and Mineral Resources in Jakarta on Thursday stated that the decision for the temporary suspension was taken at the 171st OPEC conference in Vienna, Austria, on Wednesday, November 30. Jonan, who attended the conference, said that the government took the suspension measure following the decision at the OPEC conference to cut crude oil production by 1.2 million barrels per day, excluding condensate. Based on the decision, the OPEC conference requested Indonesia to cut around five percent of its production, or around 37 thousand barrels per day. `Meanwhile, the requirement for oil revenues for the country is still great,` he said. On the other hand, according to him, the 2017 National Budget Draft stipulates that oil production in 2017 should only be reduced by five thousand barrels compared to that of 2016. Therefore, he continued, the production cut that is acceptable for Indonesia is five thousand barrels per day. Jonan also added that as a `net importer` of crude oil, the production cut will clearly not benefit Indonesia because the oil prices will, theoretically, increase. Head of Communication and Public Information Service at the Ministry of Energy and Mineral Resources Sujatmiko said that the suspension is the best decision for all OPEC members. `Therefore, the decision to cut production by 1.2 million barrels per day can be executed and on the other hand Indonesia is not bound by the decisions taken and it is in accordance with national interests,` he said. With the suspension of membership, Indonesia has now suspended its membership in OPEC twice. The first suspension was in 2008, which became effective in 2009. However, Indonesia decided to become an active member again at the beginning of 2016.
Editor: Aditia Maruli
http://www.antaranews.com/berita/599203/menteri-jonan-umumkan-indonesia-bekukan-sementara-keanggotaan-di-opec?utm_source=topnews&utm_medium=home&utm_campaign=news

The Best Participant in Algeria International Fair - Indonesia

30

Nov

The Best Participant in Algeria International Fair - Indonesia

Algerian Public Works and Construction Minister Boudjama Talai presented an award to Indonesian Ambassador to Algeria Safira Machrusah, Third [...]

The Best Participant in Algeria International Fair - Indonesia. Algerian Public Works and Construction Minister Boudjama Talai presented an award to Indonesian Ambassador to Algeria Safira Machrusah, Third Secretary for Socio-Cultural Affairs at the Indonesian Embassy in Algeria Aryadi Ramadhan told ANTARA London, Wednesday.Talai expressed his gratitude for Indonesian participation in the exhibition, which he said was unique and different from the others.“I am pleased because Indonesia’s participation this year was very enthusiastic and active, and Indonesia presented a good pavilion. I also witnessed that the Indonesian pavilion was so lively and the atmosphere was very cheerful. Therefore, Indonesia truly deserves the award as the best participant,” he said.Ambassador Safira Machrusah hoped the success of the exhibition would continue by increasing the trade balance between Indonesia and Algeria. She stated that she would work hard to establish closer economic ties between the two countries.The exhibition would become the starting point for closer economic cooperation between Indonesia and Algeria because Algerian business actors could meet with potential trade partners from Indonesia and see their products firsthand, she said.Indonesia used a 544 sq m area, and the participation of 42 companies and 137 exhibition participants was the second largest after France. Indonesia’s participation this time was the largest since the Indonesian representative office in the North African country was established.According to the management’s records, the total number of exhibition visitors was 30,000.Meanwhile, the total number of people who visited the Indonesian pavilion was around 15,000 with a total transaction value of US$500,000 or approximately Rp6.7 billion.During the exhibition, a number of Indonesian corporates secured business partners from Algeria. PT Indorama, for example, won a business deal with an Algerian partner to ship two containers of polyester to Algeria each month.In addition to being filled with entrepreneurs from various sectors, such as construction, textiles, garments, oil and gas, lubricants, jewelry, leather goods, information and technology, and food and beverage products, the Indonesian stand was also enlivened with traditional music concerts and dance performances. The Indonesian Embassy in Algiers organized a lucky draw offering a trip to Bali for four lucky visitors.Wulan, a participant from Central Java, said the exhibition held in Algeria was a big success. Indonesia got a special pavilion from the Algerian government, and the response from visitors was also very good.According to her, it turned out that many Algerian people just learned that Indonesia had various products that were quite interesting with competitive prices. On the other hand, she admitted that she had just learned that Algeria was a fairly potential open market for Indonesian products.On the sidelines of the exhibition, Indonesia got a special opportunity from the Algerian government to hold an Indonesian Day. This business match-making event was aimed at bringing together Indonesian entrepreneurs and Algerian market actors (business to business) in order to make it easier for business people from both countries to get to know each other and explore each other’s potential.From Indonesia, this meeting was attended by Indonesian Ambassador to Algeria Safira Machrusah, Indonesian Minister of Youth and Sports Imam Nahrawi, and the Director of Middle East at the Indonesian Ministry of Foreign Affairs, Nurul Aulia. Meanwhile, from Algeria, the Indonesian Chamber of Commerce and Industry (Kadin) had representatives present, as did the presidents of the Kadin provincial chapters of Biskra, Geulma, Bouiera, and Sidi Ben Abbes, in addition to around 50 Algerian large-scale economic operators and small and medium-sized business entrepreneurs.Mohamed Khubzi, a representative of the Algerian National Kadin, said that the event was a golden opportunity to find the obstacles that had so far hampered business relations between the two countries. According to the entrepreneur, who has visited Indonesia several times, the outcome of this meeting would be a milestone for strengthening economic ties between the two countries.For the first time, they would follow up by coming to Indonesia to see firsthand some of the centers of domestic products. The Indonesian industrial sectors that are popular there are the food and beverage industry, furniture, and agricultural products.
Editor: Ruslan Burhani
http://www.antaranews.com/berita/598936/indonesia-peserta-terbaik-di-pameran-internasional-aljazair

Oil tumbles amid skepticism over output cuts

30

Nov

Oil tumbles amid skepticism over output cuts

U.S. benchmark, light sweet crude oil or West Texas Intermediate (WTI) for January delivery, retreated 1.85 U.S. dollars to settle at 45.23 dollars a [...]

Oil tumbles amid skepticism over output cuts. U.S. benchmark, light sweet crude oil or West Texas Intermediate (WTI) for January delivery, retreated 1.85 U.S. dollars to settle at 45.23 dollars a barrel on the New York Mercantile Exchange. Meanwhile, the global benchmark, Brent North Sea crude for January delivery, decreased 1.86 dollars to close at 46.38 dollars a barrel on the London ICE Futures Exchange.  Media reports said Tuesday that Iran and Iraq have resisted pressure from Saudi Arabia to cut their crude production, making it harder for the Organization of the Petroleum Exporting Countries (OPEC) to reach a global output reduction deal when it meets on Wednesday. An OPEC expert meeting in Vienna on Monday failed to bridge differences between OPEC de facto leader Saudi Arabia and the second and third-largest oil producers over the mechanism of an output cut, OPEC sources told Reuters. `Restoration of Iran's lost share of the oil market is a national will and demand of the Iranian nation,` Iran's Shana news agency quoted Iranian Oil Minister Bijan Zanganeh as saying before he is set to arrive in Vienna on Tuesday. OPEC, which accounts for about one third of global oil output, agreed in September to limit its output to between around 32.5-33.0 million barrels per day (bpd), compared with its current output of 33.64 million bpd, to support oil prices that have halved since mid-2014. Iran has argued that it wants to raise its output to regain market share lost while under Western sanctions, when its rival producer Saudi Arabia boosted output. In recent weeks, Riyadh has offered to cut its own output by 0.5 million bpd, according to OPEC sources, and has suggested a cap for Iran's production of less than 4 million bpd. Tehran has sent mixed signals, including that it wanted to produce 4.2 million bpd. Iraq has also pushed for a higher production ceiling, arguing it needs the extra revenue to help pay for its fight against Islamic State militants. The dispute between Iraq and Saudi Arabia centers on whether Baghdad should use its own production estimates when limiting its output or rely on lower figures from OPEC experts. Meanwhile, Russia has said it will not attend the main talks with OPEC on Wednesday in Vienna, Austria. Some analysts including Morgan Stanley and Macquarie have said oil prices could correct sharply if OPEC fails to reach a deal, potentially falling as low as $35 a barrel, according to Xinhua. (OO.A026)
Editor: Ruslan Burhani
http://www.antaranews.com/berita/598949/harga-minyak-merosot-di-tengah-pesimisme-pengurangan-produksi?utm_source=topnews&utm_medium=home&utm_campaign=news

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