Indonesia Energy

Chapter | Energy & Mineral Resources from The Report: Indonesia 2020

Indonesia has long been a key supplier to global energy markets, but focus has shifted from export-oriented production towards meeting domestic demand. Current...

Indonesia is the world’s 16th-largest economy and presents an enticing opportunity for investors, with ongoing reform efforts and attractive demographics. Meanwhile, a booming start-up ecosystem signals the country’s rising consumer power and regional influence. While headwinds are expected to follow Covid-19, Indonesia’s strong foundations will help maintain momentum in the medium to long term.

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The ongoing UN Climate Change Conference in Glasgow has underlined how increased adoption of low-carbon energy sources will be key to reducing global emissions. While it is not without its detractors, many agree that nuclear power has a role to play in this.

Indonesia’s environmental, social and governance (ESG) priorities centre on the affordable transition to renewable energy, socio-economic growth beyond Jakarta, and improved governance in both the public and private sector.

While solar and wind are the dominant segments in the transition to renewables, a number of emerging markets are looking to geothermal sources as a way to meet future energy needs.

 

What are your expectations for growth in the upstream oil and gas segment for the medium term?

 

Oil production has been in steady decline for much of the past two decades in Indonesia, but the state aims to reverse this trend and achieve a production target of 1m barrels per day (bpd) by 2030. This will require investment from both domestic and foreign players, with policymakers searching for the right mix of state control and commercial...

 

Which projects are currently in the pipeline, and how will these help address rising oil imports resulting from decreased production?

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