indonesia energy

Energy

Opportunities in Energy: Beyond Fossil Fuels

Indonesia has ambitious goals to cut its greenhouse emissions and move into becoming a low carbon economy by putting to use its vast resources in renewable energy. With clear targets set for 2025 to diversify its energy mix, the sector holds wide ranging opportunities for investment.

Overview of the Oil & Gas sector in Indonesia

Once an OPEC member and the world’s leading LNG exporter, Indonesia is now a net oil importer and has lost its position in LNG to Qatar. This section covers the outlook for oil and gas as domestic energy demand continues to rise in line with development.

Challenges in Indonesia’s Oil and Gas Industry

Investment in exploration of new blocks to compensate for ageing oil and gas fields has been slow to come forward and thus output has seen a steady decline for oil in particular. This section looks at what has held back investors and the challenges that lay ahead for the sector.

Overview of Geothermal Energy in Indonesia

Indonesia has the largest proven reserves of geothermal energy in the world and is aiming to become the largest producer of it over the next decade. This section looks at some of the challenges in the sector that have held back development and the recent regulatory changes to boost it.

Investing in Geothermal Energy in Indonesia

Indonesia’s domestic electricity demand is increasing at an average of 9% annually thus pressing the need for accelerated development of its geothermal resources. This section looks at how investors can enter the sector and the legal framework governing the industry.

Overview of the Coal Industry in Indonesia

Environmental concerns and events in Japan have put the spotlight on developed country’s sources of energy. This section looks at the key trends impacting the coal industry worldwide and the effect on Indonesia as the leading thermal coal exporter.

Balancing Domestic Demand and Exports in Coal

While being a relative newcomer to the coal industry, Indonesia is well positioned to serve the energy hungry markets of Japan, India and China. This section looks into how the country is meeting the growing domestic consumption alongside demand for exports.

Legal Framework for Mining and Minerals

The 2009 law on mining and minerals saw a shakeup in the sector to address the issues of environmental damage and the lack of domestic input to the value added processes. This section examines the law and how it impacts investors.

Sector Snapshot

Contribution to GDP: 11% (2010)
Imports: $2.36 billion (2010)
Proven Oil Reserves: 4.2 billion barrels (end 2010)
Proven Gas Reserves: 108.4 trillion cubic feet
Proven Coal Reserves: 5529 million MET
Proven potential in Geothermal Energy: 27 GW
Proven potential in Hydropower: 75 GW
Other Energy Sources: Coal Bed Methane, Solar, Biomass, Sea Current Energy.
Current Energy Mix: Oil 47.6%, Coal 26.3%, Gas 21.4%, Hydro 3.2%, Geothermal 1.5% (2010).
Relevant Law: Energy Law No.30/2007 Setting the National Energy Policy on course to secure energy security and pursue greater reliance on renewable energy by providing incentives for its development.