Oil and gas exports form one of the key pillars of the Indonesian economy, although the outlook for the sector is becoming increasingly uncertain given dwindling oil reserves in the country's maturing fields. We forecast a long-term decline in total liquids production and a stagnation of gas production. This is mainly a result of the slow pace of exploration and development, which could be exacerbated by an increasingly uncertain regulatory environment as resource nationalism creeps into the government's policy towards the sector. Opportunities for exports will be further compromised by the domestic market's increasing energy demand. Hence, falling oil and gas exports is another key trend we identify for Indonesian oil and gas.

Click here to open the POPUP