Economic Impact of Oil & Gas Market Development

• As the Indonesian economy continues to grow, the local demand for fuel will continue to outpace the country’s refinery capacity and the production of crude oil and natural gas.
• The oil and gas refinery industry is included in the Ministry of Finance (MoF) Regulation No. 150/2018 regarding tax holiday incentives.
• The China One Belt One Road initiative is another opportunity for the downstream sector to attract more foreign investment related to fuel import activities, including receiving, storage and bunkering, and distribution network infrastructure.
• Under business-as-usual assumptions that include strong economic growth, Indonesia’s primary energy demand (including biomass) is projected to increase at an average annual rate of 3% over the outlook period, to reach 429 Mtoe in 2035.