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Indonesia’s market based economy is purely a government based organization and it has more than 164 state owned enterprises on several goods like, Indonesia oil, fuel, rice or electricity. Indonesia Oil, as it is important to world energy markets because it has OPEC membership, but presently there is declining rate of oil production in the country. Oil in Indonesia has 4.7 billion barrels of oil reserves and its quite low around 13% since 1994.Indonesia's largest oil resource is in Central Sumatra and others are in offshore north western Java along with east Kalimantan and the Natuna Sea. Year 2003 saw the crude oil production about 1.02 million barrels per day and its fewer than that of 2002 when it was 1.10 million bbd/d and its continuously declining from the last seven years.
Majority of oil reserves are situated in the central and western sections of the country and thus the focus is entirely in the eastern Indonesia as the oil reserves lies in the complex region of eastern India.
CNOOC, China national offshore oil corporation is the largest off shore oil producer in Indonesia from January 2002.But similarly the country is witnessing a major decline in oil production and it is hoped that the New Cepu field in Java will overcome this situation since this oil reserve can hold 600 million barrels of oil.
Looking globally it is seen that Indonesia's oil industry is one of oldest in the world and it was discovered in Northern Sumatra in1883. Indonesia has records of 5.14 billion barrels in the year 1990 and the additional reserves of 5.79 billion barrels. Indonesia has seven refineries and they have a combined capacity of 992,745bbd/d.
Although the new technologies and resources are increased in the Indonesia oil still the country hasn't witnessed the rise in the oil resource yet but stringent action and efforts are rapidly going on as per the Indonesia Information.
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