Commodity Market Report
New minister, new priorities: Indonesia gas and LNG H2 2016 summary
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Report summary
On 14 October 2016, Indonesia's President, Jokowi, installed Ignasius Jonan as the new energy minister, with Arcandra Tahar as the vice minister. Minister Jonan recently sanctioned lower gas prices for selected industries. He also re-proposed the gross split PSC scheme to get rid of cost recovery problems, and lowered his expectation of the 35 GW power programme. His other priority areas as the new energy minister in the near term include continuing the revision of the oil and gas law, fostering domestic oil refinery development, pushing forward upstream development and expediting the 35 GW power programme.
Table of contents
- Executive summary
-
New Energy Minister installed
- Domestic gas price reduction finalised
- Recent upstream divestment activities
- Progress on gas supply and infrastructure projects
- Java-1 tender concluded, gas demand in power remains robust
- PLN entered into FEED for the 2nd small-scale LNG project
- Additional LNG import agreement unlikely
- Key changes from H1 2016 publication
- Content summary
Tables and charts
This report includes 2 images and tables including:
- Executive summary: Image 1
- Executive summary: Table 1
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