Energy

Powering up

January 15, 2014

Asia

January 15, 2014

Asia
Our Editors

The Economist Intelligence Unit

_____________________

For this paper, sponsored by Shell, The Economist Intelligence Unit asked prominent figures from research, industry and academia to consider Indonesia’s long-term energy future.

Report Summary

Indonesia faces many challenges common to any developing economy in ensuring energy security, equitable energy access and the protection of its environment. Moreover, while the country is rich in hydrocarbon resources, it faces a great deal of uncertainty about how to maximise the benefits from their exploitation. How will the government manage this uncertainty and ensure Indonesia’s energy security for future generations?

This question was the starting point for this paper. The Economist Intelligence Unit asked prominent figures from research, industry and academia to consider Indonesia’s long-term energy future. Their contributions tackle the fundamental issues the country must consider when plotting a sustainable and secure energy policy. These include: the need for public and private-sector cooperation in managing Indonesia’s abundant resources; the economic side-effects of subsidies and fuel-price distortions; the regulatory regime facing foreign investors in the energy sector; the challenge of rural electrification and the prospects for renewable energy.

Energy is one of the basic requirements of economic development. Indonesia needs investors to produce energy for the nation and investors need support from the government in carrying out this task. We all share the responsibility of providing energy for the nation."

- Lukman Mahfoedz, President, Indonesian Petroleum Association

Enjoy in-depth insights and expert analysis - subscribe to our Perspectives newsletter, delivered every week