Indonesia: The Political Economy of Energy

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Indonesia is an important emerging market and one that is favorably situated close to the growing economies of the Pacific Rim. Blessed with substantial resources and relatively politically stable, the country is attracting international investment. This study examines the potential for development of the energy resources that are so central to Indonesia's progress. He covers the prospects of oil, gas, coal, and renewables and investigates the anticipated continuation of economic liberalization. This important book is a very substantial contribution to our knowledge of Indonesia.
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Editorial Reviews

From the Publisher

"The strength of this book lies in its clear description of the current condition of energy resources in Indonesia and the history of production contracts."--Journal of Developing Areas

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Product Details

Meet the Author

Oxford Institute for Energy Studies
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Table of Contents

1 The Giant from the Shadows: The Political and Economic Context of Indonesia's Energy Resources 1
Before Independence: The Colonial Treasure House 1
'Earth Oil': The Early Days of the Oil Industry 4
Independence and the Sukarno Years 7
Stability and Growth: The Long Presidency 16
2 The Development of Oil Production: The Future of Upstream Oil 33
Oil Reserves and the Resource Base 33
The Development of Production Sharing and its Impact on Oil Production 37
The Development of Oil Production 57
The Outlook for Future Production 62
Oil Exporting Policy 70
3 The Challenge for Downstream Oil: The Domestic Energy Scene 82
The Energy Balance and the Growth of the Markets 82
Imbalances in the Supply and Demand of Petroleum Products 89
Refining Policy 92
Liquefied Petroleum Gas 92
Petrochemicals 99
The Outlook for Oil: Can the 'Oil Squeeze' be Avoided? 101
4 Natural Gas: The Basis for Future Prosperity 107
The Resource Base 107
Present Production, Structure and Contractual Conditions 109
Trade in Liquefied Natural Gas (LNG) 111
Contractual Terms for Gas Sales 114
The Domestic Market 117
The Future for Gas 121
5 More Energy Sources: The Alternatives 129
Coal 129
Hydropower 135
Geothermal 136
Nuclear Power 138
Other Energy Sources 141
6 The Means to the End: Policy, Pertamina and the Organization of the Oil and Gas Sector 143
The Underlying Policies 142
Organization of the Energy Sector 146
The Relationship with OPEC 155
7 With Hope into the Next Century 160
The Challenge 160
The Future of Energy Demand and Supply 163
Increasing Oil Production 165
Natural Gas Goes Ahead 168
A Bright Future? 170
Appendices 172
Bibliography 186
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