Energy

Endowed with substantial energy reserves spread across its vast territory, Indonesia has been among the region’s largest producers and exporters of fossil fuels for decades. While this trend shows little sign of changing, the sector is in the midst of a dramatic shift in the composition of its resources. With crude production in decline, natural gas is taking on an increasingly important role in terms of exports and domestic use. Indonesia’s oil and gas sector will remain a strong contributor to the country’s economy in terms of its export revenue through increasing shipments of natural gas as well as domestically through its taxation and production-sharing agreements. This chapter contains an interview with Karen Agustiawen, President Director, Pertamina, and a roundtable with William Lin, President, BP Asia Pacific; Abdul Hamid Batubara, Deputy Managing Director, Chevron Indonesia; Richard Owen, President Director, ExxonMobil Indonesia; Lukman Mahfoedz, President Director, Medco Energi; and Roberto Lorato, President Director, Premier Oil Indonesia.