Indonesia's gas market has seen an unexpected slow down this year. The country's gas demand growth is relatively flat, while its LNG demand fell by 15% to 2.4 mmtpa in 2017. The decline in demand was mainly driven by the lower-than-expected electricity sales this year, growing at merely 3.1% from 2016 compared to PLN's expectation of 8.3%. The disappointing power sales will have a longer term implications, as PLN seeks to reduce its long-term power demand outlook. This may result in the deferral of several power plant projects. As a lot of coal-fired power plants have signed PPAs with PLN, new gas-fired power plants will be the ones that are most impacted. The upcoming revision of PLN's power development plan is consistent with our more conservative view, bringing its demand growth closer to our assumption of 5.9% per year.