24 April 2024
Indonesia faces tough decisions as sector investment drops
Publication date: 24 June 2017
Gas Strategies Group
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With a population of 253 million, the most populous country in Southeast Asia and the fourth most populous in the world behind China, India, and the US, Indonesia is facing hard decisions as its oil and gas production continues to fall short of domestic consumption and sector investment drops. Indonesia has a history of offering international oil companies (IOCs) not only what many consider an unlevel playing field and reduced incentives to enter its energy sector, but also a cumbersome and hard-to-understand regulatory environment. The country now appears determined to solve these problems. The government has recently offered a much-touted gross split scheme for oil companies as well as offering new oil and gas blocks. However, questions remain: will these new steps be enough to attract sufficient investment and, perhaps just as important, will they be enough to give the Southeast Asian giant a better reputation among international oil and gas players?