Indonesia Energy

Long known for maintaining low fuel prices despite its large population, Indonesia has recently begun to take meaningful steps to reform a decades-old policy that has bloated federal budgets and often fallen short of its purported aim of helping the less fortunate. Policymakers in Indonesia, as in many countries around the world, have long seen energy subsidies as a quick and...

Already the world’s third-largest geothermal power producer, Indonesia is poised to enter a fresh phase of expanding this resource, with a new law setting the stage for further investment. By smoothing out many regulatory wrinkles for developers, the government hopes to tap the many subterranean thermal hotspots that dot the country as electricity producers scramble to meet...

With the spectre of an electricity shortfall looming larger with each passing year, the Indonesian government is looking to coal-fired thermal power plants to provide a quick and easy solution. Coal has many advantages over other forms of power generation in Indonesia: it is cheaper, more established technologically and abundant. It is also seen as preferable to diverting...

Oil and gas commercialisation has been a linchpin of Indonesia’s economic development for more than three decades, accounting for as much as 80% of the country’s annual exports and 70% of its annual revenues since the 1970s. While the country’s economy has expanded and diversified over time, aided by the inflow of foreign currency derived from...

With a population of some 240m citizens, Indonesia has long been burdened by the conundrum of providing relatively inexpensive energy to its population at large while at the same time maintaining domestic purchase prices of oil and gas high enough as to remain attractive for upstream operators to continue to search out and exploit domestic...

The country’s reliance on natural gas, needed to play an increasing role in meeting both its own energy needs as well as its continued use as a cash-generating export, leaves little doubt that the country will need to use any and all means available in securing new domestic supplies. While there are still substantial amounts of conventional...