Indonesian imports set to rocket as crisis bites19 May 2017
Indonesia’s reliance on oil and gas imports could jump by 500% by 2025 unless action is taken. The stark warning was given by Eddy Tamboto, managing director of the Boston Consulting Group, speaking at the Indonesian Petroleum Association’s (IPA’s) conference in Jakarta. Tamboto added that the Indonesian government must implement a long-term strategic plan to boost output as domestic demand soars.
Analysts estimate the country will have a supply shortfall of 2.5 million barrels of oil equivalent per day (MMboe/d) in 2025 unless the former OPEC member can reinvigorate investment in its ailing upstream business. Indonesia, a mature producer, is already a net oil importer and approved new rules earlier this year to allow LNG imports. Initial cargoes may start arriving as early as 2019, at which time Indonesia could already be struggling to meet its demand for gas, which is a crucial economic driver.
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