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AssessmentsAug 12, 2019 | 09:00 GMT
Cars and motorcycles line up at a fuel station in Purwokerto, on the island of Java, Indonesia, on Nov. 17, 2014.
In Indonesia, Energy Reform Takes a Back Seat to Pragmatism
Pragmatism is winning out over ambition, at least as far as energy reform in Indonesia is concerned. When he assumed office in 2014, Indonesian President Joko "Jokowi" Widodo promised big changes for both the upstream and downstream energy sectors in an effort to attain greater local control of hydrocarbon production and stanch the flow of state funds into expensive consumer fuel subsidies. With this, Jokowi hoped to foster long-term self-reliance in extraction and production while channeling subsidy savings into much-needed infrastructure improvements, right-sizing fuel demand and lowering the country's reliance on imported fuel. All of the changes were part of Jokowi's overall bid to foster an economy based on manufacturing and industry, rather than raw commodity exports. But five years on, the results have been mixed. Jokowi's government has taken a more cautious approach out of fears of a public backlash and economic repercussions, compelling gasoline prices to remain flat
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AssessmentsNov 13, 2015 | 09:01 GMT
Indonesian motorists line up in at a Pertamina fuel station in Jakarta.
Fueling Indonesia's Regional Strategy
In 2009, after 47 years as a member of the oil producers' cartel, Indonesia suspended its OPEC membership, having lost its status as a net oil exporter. On Dec. 4, despite being a net importer, Indonesia will officially rejoin OPEC at the bloc's meeting in Vienna. This time, however, Jakarta is pursuing a new strategy, hoping to barter its status as OPEC's only Asia-Pacific member to become a bridge between Middle Eastern producers and Asian consumers.
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