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Indonesia Bets on $200 Billion Investment to Boost Energy Output

  • Former OPEC member plans fiscal bait for explorers, Jonan says
  • Crude oil output set to top 1 million barrels per day in 2019
1493090214_indonesia power line energy lede
Photographer: Dimas Ardian/Bloomberg

Indonesia plans to overhaul its energy policy to attract investment of as much as $200 billion over the next decade as the former OPEC member seeks to reverse a decline in its crude oil production.

The amendments to the energy policy, once approved by President Joko Widodo, will allow explorers various financial incentives including tax-free import of drilling equipment and technology and easier cost-recovery, Energy and Mineral Resources Minister Ignasius Jonan said in an interview in Jakarta on April 22. The nation is offering 14 unexplored oil and gas blocks, mostly offshore fields, to investors and expect both foreign and domestic companies to actively participate, he said.