As a developing country, Indonesia’s continuously increasing demand for fuel is out of balance with its declining ability to extract oil. Unfortunately, weak government supervision and legal uncertainty regarding contracts has resulted in a serious lack of investment and exploration, which is in turn limiting Indonesia’s progress in the energy sector.
President Joko Widodo’s administration seems to be serious about developing the nation’s energy sector though, a move which has been welcomed by the United States. It is hoped that US intentions to further invest in the Indonesian energy sector will boost the nation’s struggling economy and kick start oil and gas production in the country.
This issue was raised at the recent Fourth US–Indonesia Energy Investment Roundtable, an event that was attended by Jonathan Elkind, Assistant Secretary for International Affairs at the US Department of Energy; Sudirman Said, Indonesia’s Minister of Energy and Mineral Resources (ESDM); and also Chevron Pacific Indonesia’s President Commissioner.
“It is clear that President Joko Widodo is highly focused on energy development. This will be a huge project in which we can all contribute collectively,” Mr. Elkind said on Monday.
Mr. Elkind also asserted that despite its contributions to the oil and gas sectors here, the US government respected the processes and decisions made by the Indonesian government. Freeport, for example, is a US-based energy company currently facing bureaucratic problems in Indonesia, despite a successful licensing process, however Mr. Elkind stated that the US would not meddle in domestic affairs against the wishes of the Indonesian government.
“US companies can surely contribute to the Indonesian market if the government wishes their presence in Indonesia. The US will respect our democratic processes and will await the conclusion of this matter by the Indonesian government,” stated Mr. Elkind.
Meanwhile, Minister for ESDM, Sudirman Said, emphasized that continuous efforts are being made by the Indonesian government in order to develop the energy sector, including the strengthening of its alliance with the US.
“Indonesia is fully aware of the need to develop its energy sector as a prerequisite for the development of the economy as a whole, and that US-based companies are able to play an important role in this process. Therefore all possible aspects of this relationship have to be considered in order to create a stronger alliance between the US and Indonesia,” explained Minister Said.
According to Minister Said, forming a cooperation was necessary in order to boost both the Indonesian and US economies, and the Minister also stated that a commitment to increase investment in the country by a number of US-based companies, such as Chevron and Freeport, had also been mooted.
“However, ongoing adjustments to various regional sectors around the country have to be taken into consideration, as this is a consequence of democracy. I think that our friends from the US need to understand this,” Minister Said concluded.
As a developing country, Indonesia’s continuously increasing demand for fuel is out of balance with its declining ability to extract oil. Unfortunately, weak government supervision and legal uncertainty regarding contracts has resulted in a serious lack of investment and exploration, which is in turn limiting Indonesia’s progress in the energy sector.
President Joko Widodo’s administration seems to be serious about developing the nation’s energy sector though, a move which has been welcomed by the United States. It is hoped that US intentions to further invest in the Indonesian energy sector will boost the nation’s struggling economy and kick start oil and gas production in the country.
This issue was raised at the recent Fourth US–Indonesia Energy Investment Roundtable, an event that was attended by Jonathan Elkind, Assistant Secretary for International Affairs at the US Department of Energy; Sudirman Said, Indonesia’s Minister of Energy and Mineral Resources (ESDM); and also Chevron Pacific Indonesia’s President Commissioner.
“It is clear that President Joko Widodo is highly focused on energy development. This will be a huge project in which we can all contribute collectively,” Mr. Elkind said on Monday.
Mr. Elkind also asserted that despite its contributions to the oil and gas sectors here, the US government respected the processes and decisions made by the Indonesian government. Freeport, for example, is a US-based energy company currently facing bureaucratic problems in Indonesia, despite a successful licensing process, however Mr. Elkind stated that the US would not meddle in domestic affairs against the wishes of the Indonesian government.
“US companies can surely contribute to the Indonesian market if the government wishes their presence in Indonesia. The US will respect our democratic processes and will await the conclusion of this matter by the Indonesian government,” stated Mr. Elkind.
Meanwhile, Minister for ESDM, Sudirman Said, emphasized that continuous efforts are being made by the Indonesian government in order to develop the energy sector, including the strengthening of its alliance with the US.
“Indonesia is fully aware of the need to develop its energy sector as a prerequisite for the development of the economy as a whole, and that US-based companies are able to play an important role in this process. Therefore all possible aspects of this relationship have to be considered in order to create a stronger alliance between the US and Indonesia,” explained Minister Said.
According to Minister Said, forming a cooperation was necessary in order to boost both the Indonesian and US economies, and the Minister also stated that a commitment to increase investment in the country by a number of US-based companies, such as Chevron and Freeport, had also been mooted.
“However, ongoing adjustments to various regional sectors around the country have to be taken into consideration, as this is a consequence of democracy. I think that our friends from the US need to understand this,” Minister Said concluded.