Indonesia's Pertamina 2021 crude oil imports seen up 50.4% y/y

JAKARTA: Indonesian state oil company PT Pertamina is estimated to increase its crude oil imports by 50.4% this year compared to 2020, its chief executive officer said on Tuesday, in an effort to reduce its current account deficit.

The practice, which has been used since the middle of last year, will be more cost-effective, with Pertamina importing cheaper crude while exporting the more expensive Indonesian crude, Pertamina CEO Nicke Widyawati told parliament.

"If we export domestic crude while importing from elsewhere, the price difference will improve our current account deficit," Nicke said.

Pertamina is estimated to import 118.4 million barrels of crude oil this year, compared to the 78.7 million barrels imported in 2020.

This also surpasses crude imports in 2019, when the company took in 86.9 million barrels.

The Indonesian energy ministry issued a regulation in 2018 asking oil and gas contractors to prioritise Pertamina and other domestic refinery operators as buyers for crude produced from the country's blocks, in its efforts to reduce energy imports.

But changes in crude prices over the past year have made it more profitable to sell Indonesian crude to the foreign market while importing cheaper crude.

Pertamina also reported on Tuesday higher gasoline imports for this year.

Gasoline imports are expected to be at 113 million barrels, up 13.5% from last year but still lower than 2019 levels.