The oil and gas industry, both in Indonesia and globally, has experienced significant volatility in the last decade. Indonesia has been active in the oil and gas sector for more than 130 years, after the first oil discovery in North Sumatra in 1885. Based on a report from PWC, Indonesia is ranked 11th in terms of global gas production, with proven reserves of 96 trillion cubic feet (TCF) in 2018. On a reserve basis, Indonesia ranks 13th in the world and the second in the Asia-Pacific region (following China). Indonesia’s relevance in seaborne Liquefied Natural Gas (LNG) is more critical. In relation to renewable energy, based on Lowy Institute, Indonesia has the potential to generate 788,000 megawatts (MW) of power from renewable energy sources such as wind, solar, tidal, and geothermal. This is more than 14 times the country’s current electricity consumption. Thanks to magma, hot rocks, and hot water beneath its surface, Indonesia has 40% of the world’s geothermal energy stores, enough for 29,000 MW of energy.
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