Commodities exports are an important part of the Indonesian economy, and the country has been negatively affected by a slump in global prices, with export receipts contracting significantly since 2012. Although much of this is due to weakening demand in China, Europe and the US, the recent introduction of several protectionist policies –...
As Indonesia’s natural gas production continues to recede from its peak in 2009, the government is looking to boost upstream activity by proposing four high-potential oil and gas projects for the list of national strategic projects (PSN). Under this programme, which was initiated by presidential decree in 2016, infrastructure projects deemed...
What can be done to further facilitate the development of independent power producers (IPPs)?
Like many rapidly developing countries, Indonesia faces the dilemma of how to increase electricity-generation capacity while minimising tariffs levied on consumers. On one hand, Indonesia maintains ample domestic coal reserves which have traditionally served as an inexpensive, easy-to-access fuel supply. On the other hand, the world has become...
Seeking to support private investment for Indonesia’s 35-GW national power development initiative, regulators rolled out two new regulations in January 2017 intended to encourage efficient, fair and transparent development of the electricity supply. These regulations, which focus specifically on the power purchase agreement (PPA) between...
As the oil and gas sector has contributed progressively less to the state budget, policymakers are seeking ways to boost revenue from the industry. Walking the tightrope between an attractive investment climate and greater state revenue shares has proven challenging, particularly since the slump in oil prices began in 2014. New government...
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