REPUBLIKA.CO.ID, JAKARTA -- The House of Representatives (DPR) has lauded state oil and gas company Pertamina's step to cut oil imports as part of its efforts to strengthen rupiah. Oil and gas imports currently contribute the most to the country's current account deficit, which is one of the factors causing the rupiah's weakening.

"That is a good step. In the short term, oil imports can be reduced by banning the export of crude oil owned by (foreign) contractors," a member of the House Commission VII, Kurtubi, stated here on Wednesday.

The government currently buys 225 thousand barrels of domestic oil per day. "That is a short-term policy. But it takes a long time to reduce oil and gas imports sustainably," he noted.

In the long run, oil and gas imports could be reduced by raising domestic oil and gas production and increasing drilling and exploration activities, he added. At the same time, the government must also raise domestic fuel oil production through refineries.

"It is oil refineries that produce domestic fuel oils. The number of our refineries remains unchanged," he revealed.

To that end, Kurtubi lauded Pertamina's plan to build six new oil refineries and optimize the existing oil refineries to contribute 1 million barrels per day. It was aimed to meet fuel oil needs in 2024.

"So we cannot spontaneously reduce oil imports," he pointed out.

Earlier, Minister for State Enterprises (BUMN) Rini Soemarno expected Pertamina to be able to use all Indonesia's crude oil production to be fed into its refineries in 2019. Pertamina has to spend large foreign exchange for the import of crude oil to feed its oil refineries as most of the country's crude oil production by oil contractors is exported.

"Pertamina is also expected to start implementing plan to build more oil refineries to reduce the country's dependence on imports for oil products mainly oil fuels," she said on board a ferry on her way from Merak, Banten to Bakauheni on Aug 29.

Meanwhile, newly inaugurated President Director Nicke Widyawati assured that Pertamina would focus on reducing imports, refinery construction, and implementation of Biosolar B20 program. On Aug 29, she stated that the three targets were a short-term plan that Pertamina would carry out until the end of this year. She also said that Pertamina would reduce imports that have become bigger this year.

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