Energy
From The Report: Indonesia 2013
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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.

Articles from this Chapter

Overview

Changing with the times: Oil production expected to decrease but hydrocarbons remain strong
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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 both in terms of exports and domestic use. Coal production still dominates power generation and…

Analysis

Shifting sands: Improved regulatory bodies are needed to reach full sector potential
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Over decades of partnership between the government and the private oil and gas companies contracted to bring hydrocarbon resources to the surface, the two parties have cooperated in the name of common interest. But while Indonesia still possesses plenty of reserves ripe for commercial exploration, continued uncertainty in the state’s oil and gas regulatory framework has boosted risk perception of the industry to the point that many investors have expressed reservations about committing to new…

Interview

Karen Agustiawan, President Director, Pertamina: Interview
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Interview: Karen Agustiawan How can further collaboration and cooperation between stakeholders be achieved to increase oil and gas production in Indonesia? KAREN AGUSTIAWAN: First, investors would like to see a one-door policy whereby investment, permits and all procedures to enter the market are handled by one office in the Ministry of Energy and Mineral Resources; they want a relatively straightforward and easy way to invest in the oil and gas sector. This would increase coordination among departments,…

Interview

William Lin, President, BP Asia Pacific; Abdul Hamid Batubara, Deputy MD, Chevron Indonesia; Richard Owen, President Director, ExxonMobil Indonesia; Lukman Mahfoedz, President Director, Medco Energi; and Roberto Lorato, President Director, Premier Oil
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Interview: William Lin,Abdul Hamid Batubara,Richard Owen,Lukman Mahfoedz, and Roberto Lorato How can private and public stakeholders improve coordination to boost investment and production? WILLIAM LIN: Coordination has improved within the energy sector in some areas, but there are still challenges. There is still a lack of clarity around roles and responsibilities and too many people or institutions involved, which can make it difficult for private stakeholders to know who is…

Analysis

It’s a gas: Decreasing oil production draws focus to other energy sources
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In order to compensate for the inevitable decline of domestic oil production and supplement coal supplies, Indonesia is increasingly leaning on its natural gas reserves to satiate a growing energy appetite and boost export revenues. With production rates steadily increasing over the past decade and more fields expected to contribute in the near future, it may be possible for domestic supplies to sustain expansion. Domestic natural gas production totalled 75.6bn cubic metres (bcm) in 2011,…

Analysis

In the mix: Renewable energy is set to change the power outlook
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Given Indonesia’s plentiful coal reserves and the need to build vast amounts of power generation quickly, a heavy reliance on fossil fuels is predicted initially. After the completion of the country’s first 10,000-MW fast-track plan, expected in 2014 and primarily relying on coal-fired generation, the table is set for renewable energy to shine. The government’s second fast-track development plan leans more heavily towards alternative energy sources than its predecessor, with two-thirds…

Analysis

Heating up: Renewable energy projects are set to top the agenda worldwide
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The global insolation map has three notable patches: one in western Australia, another in the south-western US, and the last stretching from Algeria across North Africa all the way to Saudi Arabia. It is in these regions where the most sun hits the ground, creating the greatest potential for solar energy. The large swatch in the Middle East and North Africa (MENA) region is of particular interest these days. It runs through countries that are fast growing and in need of additional sources of…