Indonesian energy report

September 2010

Indonesia - Jakarta

Contacts

Preface

Indonesia is a resource rich country with a growing demand for energy. The established oil and gas industries continue to offer good opportunities for developers, but unconventional forms of energy also offer exciting new upstream potential. Coalbed methane, shale gas and geothermal energy are among the sizeable and under-developed opportunities available in Indonesia.

On the downstream side, Indonesia’s need for new electricity generating capacity continues. The financial closing of recent independent power projects (IPPs) in March 2010 indicates that Indonesian IPPs are clearly back in business. The troubled times of the 1997 Asian financial crisis are a distant memory: existing IPPs have performed well and PLN has shown a strong payment record. The confidence of developers and financiers has now reached a critical tipping point.

This report looks at current developments in the Indonesian oil, gas and power industries. We look at the industry structure, the regulatory environment and current opportunities for investors.

This report has been produced from publicly available information sources. Care has been taken to check the reliability of the source, but we have been unable to verify the accuracy of all the information contained in this report. The facts contained in this report are subject to change.

Please refer to the contacts listed at the back of this report, if we can assist you with any further information.

*Ross Ramsay is currently relocating to our Jakarta associate office.