Indonesia has long been a key supplier to global energy markets, with the first oil discovery made in North Sumatra in 1885. Energy production has grown since then to include gas, coal and renewables, but the industry’s role within the country has evolved as oil fields have matured and the population has continued to grow. The focus has shifted from export-oriented production towards meeting domestic demand. Meanwhile, Indonesia is currently a net importer of petroleum products – a status…
Energy & Mineral Resources
From The Report: Indonesia 2020
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Indonesia has long been a key supplier to global energy markets, but focus has shifted from export-oriented production towards meeting domestic demand. Current objectives include meeting the demand for consumer fuel through crude and palm oil, addressing electricity demand via coal and renewables, and using natural gas to supply predominantly industrial consumers. The government aims to consolidate control over upstream crude oil activities, primarily through the state-owned enterprise Pertamina, but still welcomes foreign investment in the sector. Long considered one of the world’s premier mining destinations, Indonesia finds itself in a transition period in 2020 amid significant questions about the future of the industry. The archipelago is home to considerable reserves of a wide variety of metals that are crucial to the global economy, and several metals that are key inputs for electric vehicles and industrial-scale batteries. This provides opportunities for foreign investment in mining services and downstream industries. This chapter contains interviews with Dwi Soetjipto, Chairman, SKK Migas; and Hilmi Panigoro, President Director, MedcoEnergi.