Title: Indonesian natural gas policy reform

Authors: Aldi Hutagalung; Maarten J. Arentsen; Jon C. Lovett

Addresses: Directorate General of Oil and Gas, Ministry of Energy and Mineral Resources, Jl Rasuna Said Kav B-5, Kuningan, Jakarta Selatan, Indonesia ' Centre for Studies in Technology and Sustainable Development (CSTM), University of Twente, The Netherlands ' School of Geography, University of Leeds, UK

Abstract: This paper investigates the challenge to improve Indonesia's domestic gas market and the remedy to alleviate the problems. Gifted with abundant natural resources, primary oil, and natural gas, Indonesia became a leading world liquid natural gas (LNG) producer. However, since 2001 there has been a shifting paradigm in gas policy from export - oriented to domestic market development. The implication is that Indonesia needs to find the balance between producer and consumer interests and at the same time has to deal with the geographical challenge of the country's archipelago. The new paradigm also requires that natural resources should promote economic growth instead of state revenue, therefore Indonesia must reform its gas policy to fulfil the multi objective of gas utilisation. This paper suggests ways to overcome these dilemmas.

Keywords: Indonesian gas market reform; Indonesian gas market regulation; institutional barriers Indonesian gas market.

DOI: 10.1504/IJETP.2023.138028

International Journal of Energy Technology and Policy, 2023 Vol.18 No.6, pp.393 - 408

Accepted: 07 Jul 2023
Published online: 17 Apr 2024 *