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Chris Newton looks at the critical role of energy and specifically oil and gas to Indonesia’s continued economic, political and social success. Essential to this ongoing success is the delivery of sustainable and sufficient oil and gas supply to markets and ultimately consumers.
The National Energy Policy’s stated objectives of energy independence and security fit this requirement. However, successful realization of these objectives needs increased investment in exploration and exploitation, requiring the creation of a competitive and fit for purpose investment environment. If this does not occur, the default option is an uncompetitive environment - leading to falling reserves and production, higher imports and reduced energy independence and security.