What strategies could further increase Indonesia’s oil and gas production capacity?
Indonesia is stepping up efforts to increase gas production, both to consolidate its position as a leading exporter and to meet rising domestic demand.
After passenger numbers dropped off sharply in the opening months of the year, Indonesia’s government has moved to rein in rising air travel costs by lowering ticket prices and increasing local production of jet fuel.
Regulations mandating the use of palm oil in diesel fuel could help ease Indonesia’s dependence on energy imports and stabilise the local currency, while improving prospects for local palm oil producers.
Indonesia’s power sector is expanding gas-fired generation capacity to meet rising electricity consumption, a move that is expected to increase net energy imports as part of plans to meet long-term demand.
A new formula for dividing revenues from Indonesia’s oil and gas fields offers a chance for greater returns in the energy sector – an opportunity that could generate more upstream investment.
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