Role of Gas in Accelerating Indonesia Economy Growth


Business Forum: "Role of Gas in Accelerating Indonesia Economy Growth"

Natural gas will play more dominant roles vis-à-vis oil in Indonesia’s future energy mix. By 2025, Indonesia is expected to become a net gas importer, triggered by domestic gas demand growth at around 4 percent per year and insufficient domestic gas supply. Facing these circumstances, monetizing gas reserves, devising attractive fiscal system as well as developing Gas / LNG infrastructure are very critical to deliver affordable gas to consumers throughout Indonesia.

Taking into account the low oil price environment since end of 2014 as well as global economy circumstances, Indonesia gas industry is facing many challenges, as consumers demand low gas price when in other side producers are struggling on the economics of their projects and operation.

Breakthrough in the entire gas value chain is essential to create the market, such as introducing newer technologies in order to push the upstream sector, supportive fiscal system, well regulated and efficient mid stream, efficient and competitive consumers, which all and all needs government support and lead.

Key collaborations desired

  • Enable development of upstream assets through gas infrastructure development
  • Create attractive fiscal regime to promote upstream and infrastructure gas development
  • Develop infrastructure as per long-term blueprint to serve entire Indonesia
  • Ensure shared development of gas infrastructure without duplication to increase utilization and reduce costs to the end-user
  • Coordinate shared development of gas infrastructure to optimize costs
  • Ensure projects are completed on-time, with adequate visibility
  • Partnership to ensure that gas supply can be provided to the areas that are currently unserved
  • Develop market to ensure gas is supplied to demands across entire Indonesia
  • Facilitate planning of gas infrastructure
  • Early/ timely approvals and licenses along with stable policies for gas infrastructure development
  • Develop and formalize mitigation measures for major risks such as currency exchange rate fluctuation and complexity in land acquisition

Participants will discuss sustainable Gas /LNG production, utilization and required infrastructures to support Indonesia economic growth in which collaboration amongst multiple stakeholders is very essential.