Investing In Indonesian oil and gas

A case of Rabbits amongst Tigers? Indonesia is facing an energy crunch! A look at the issues facing investors in its petroleum industry, as the country struggles to switch away from oil dependency to natural gas.

12 November 2010 Nicholas Newman Indonesian Investment Conditions Issues facing investors in Indonesia's oil and gas sector Domestic demand for oil and gas is beginning to outstrip the country’s ability to meet its energy needs from domestic sources. Its ability to tackle this problem is being obstructed by an historic cheap energy policy that encourages wasteful usage of energy and discourages the very necessary investment in new productive capacity and energy efficiency. http://www.oxfordprospect.co.uk/Investing-in-Indonesian-Oil-and-Gas!.html

Peak coal approaches for Indonesia

Nicholas Newman http://www.oxfordprospect.co.uk/Freelance-Journalist.html
Indonesia has been a rising star of the global coal industry for years and is now the
world’s largest exporter of thermal coal. However, tighter restrictions on coal mining
operations and the need for infrastructural investment to reach new mines suggest the
country will be unable to maintain its current level of output growth. And just like the
country’s oil and gas, export volumes will increasingly be challenged by rising internal
demand. http://russia.platts.com/IM.Platts.Content/ProductsServices/Products/energyeconomist.pdf   see page 23.

Indonesia wrestles with its chronic electricity crisis

By Nicholas Newman http://www.oxfordprospect.co.uk/Freelance-Journalist.html
Crisis was the term Indonesia’s president Susilo Bambang Yudhoyono chose to describe his country’s electricity problems. Dahlan Iskan, CEO of state-owned power company PT PLN (Persero), has also admitted the country’s supply of electricity is very limited. PLN has encountered power shortages in 250 regions, including 243 locations in eastern Indonesia, he said.

WHAT LIES BEHIND THE CURRENT POWER CRISIS?

Two main causes underlie the latest current power crisis, which started in 2008. The first is the 1997 Asian Economic Crisis, which forced PLN to cancel many new power station developments says Dr Mika Purra, a research fellow at Lee Kuan Yew School of Public Policy in Singapore. The looming power shortage was masked by the crisis and almost a decade of slow growth until Indonesia’s economy began to accelerate around 2006.

The second underlying cause has been government and business sector indecision over investment in generating capacity for at least five years before the current crisis began, suggests Peter McCawley, a visiting fellow at Australian National University’s (ANU) Indonesia Project. http://www.powerengineeringint.com/articles/print/volume-18/issue-9/power-report/indonesia-wrestles-with-its-chronic-electricity-crisis.html
For more on Indonesia see http://www.oxfordprospect.co.uk/Investing-in-Indonesian-Oil-and-Gas!.html