2015 marked the first full year under President Joko "Jokowi" Widodo. During the year, the new Indonesian government has come up with series of initiatives and proposals in an attempt to improve the performance of the energy sector. The most significant policy measures were revisions to both the mining, and the oil and gas regulations. Additionally, the government introduced a new power development plan, the 35 GW programme.
2016 looks to be another busy year for Indonesian energy policy. Two proposals, the single gas aggregator scheme and also the implementation of the new mining law will have a significant impact on the domestic gas and coal markets.
2016 will be a bumper year in terms of gas and power infrastructure development. For LNG, we expect to see the advancement of several gas infrastructure projects such as the 4-mmpta Bojonegara regas terminal, Bali FSRU and small-scale regas terminals.
On the power side, 2016 will be the critical year for deciding whether the 35 GW power programme is successful. The programme, which will build nearly 300 power plants across the country, has a critical strategic significance to meet the country's burgeoning power demand.
So far, about 10 GW has been awarded. But awarding is one thing, building another. While the government has introduced a few measures to speed up the development process, 2016 will see whether the projects actually move ahead. The progress of the programme will have a big impact on the domestic gas demand, as gas represents around 35% of the proposed capacities.
Edi Saputra, Senior Analyst at Wood Mackenzie will be speaking at the upcoming Gas Indonesia Summit and Exhibition. The event, officially supported by the Ministry of Energy and Mineral Resources, Indonesia (ESDM) and powered by Gastech, will take place at the Shangri-La Jakarta, Indonesia from 15 to 17 March 2016.
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