Indonesia steps away from OPEC

Indonesia has announced it will withdraw quickly from OPEC, the Organisation of Oil Producing Countries.

Indonesian Energy Minister Purnomo Yusgiantoro says his country will not participate in an oil cartel whose strategy is to keep oil prices high, especially as Indonesia currently imports more oil than it exports.

The high prices of crude oil are beginning to put pressure on the Indonesian budget as it hands out high fuel subsidies. Jakarta recently increased the price of fuel sold locally by almost thirty percent.

It also wants to cut energy subsidies drastically. The increase in fuel prices has led to large demonstrations throughout Indonesia.

- Australian Herald