Indonesia suspended its membership in theOrganization of Petroleum Exporting Countries ,OPEC , after less than a year on its accession to theorganization of a new Indonesia , where net importer of oil said it could not agree on production cuts by the Organization.
The decision comes after the Organization 'sagreement on the first cut in oil production since 2008 in order to solve the problem of oil supply glut and support prices.
Suspension could be a setback for Indonesia , OPEC 's only -aledo from East Asia where she hopes to take advantage of its proximity to the OPEC countries having regained its membership again at the beginning of this year.
She suggested OPEC to cut Indonesia 's oil production by about 37 thousand barrels per day , or about five percent of their production.
Minister of Energy and Mineral Resources Indonesian Ajnacejus Junan , who attended the Vienna meeting, said that theonly cuts his country can accept is five thousand barrels per day , which was approved in the state budget for 2017.
He said 'there is still a need for a large government revenues in 2017 budget' He pointed out that the production cuts will not benefit Indonesia net importer of oil , especially in the time expected that the oil price rise.
The minister said in a statement that the temporary suspension of membership in the interests of all the members ofOPEC.
It was unclear whether Indonesia had left voluntarily or asked to suspend its membership. Qatar , the current president of OPEC said on Wednesday that he has been suspended from Indonesia.
Indonesia is a member of an extraordinary OPEC and its membership of the checkered history.
After accession to the Organization for the first time in 1962 , it withdrew in 2009 after it caused a decline in production in its transformation into a net importer of crude oil , which is inconsistent with the terms of full membership in OPEC.
Since joining the organization reiterated Indonesia held a number of agreements for the import of oil and upstream investments abroad and in the refining sector partnerships include agreements with Saudi Arabia and Iran in the two largest members of OPEC.
The total crude oil production in Indonesia , peaked at 1.7 million barrels per day in the mid - nineties. But with a few important oil discoveries in western Indonesia in the past ten years production has fallen almost half as old fields depleted stocks.