Bernama.com (Malaysian National News Agency), 22 August 2006 16:19 PM

Join Hands In Energy Cooperation, Says Indonesia

By Mikhail Raj Abdullah

KUALA LUMPUR, Aug 22 (Bernama) -- Southeast Asia must step up energy cooperation to produce alternative fuels to cushion the economies of its members against the ill effects of skyrocketing oil prices.

In making the call, Indonesian Trade Minister Dr Mari Elka Pangestu, said Asean must "seriously" consider joint action or even joint ventures in areas such as producing biofuels using palm oil.

"High oil prices will only accelerate joint cooperation," she said when asked to what extent countries could cope with skyrocketing oil prices on the sidelines of the Asean Economic Ministers (AEM) meeting, here Tuesday.

She told Bernama that the Philippines was "likely to bring the matter" up when it hosts the Asean Summit in Cebu in December.

Global oil prices reached a record high of US$78.40 per barrel last July, no thanks to the war in Lebanon.

Today, prices hover at US$71.99 per barrel with fears it could escalate further amid reports that oil-rich Iran which is on a nuclear stand-off with the United States test-fired a short-range missile during military exercises.

Besides Indonesia, Malaysia, Brunei and Thailand are crude oil producers while the rest of Asean are mainly oil importers.

Dr Mari said President Susilo Bambang Yudhoyono, during his visit to Malaysia recently, had sounded out that Indonesia was keen to jointly develop and market bio-energy with Malaysia as both countries accounted for 90 per cent of the global palm oil output.

Asked how Asean could further cooperate to contain prices, she said: "We can raise crude oil production, produce coal and gas, but most importantly we must conserve."

-- BERNAMA