Gas monetisation intricacies: evidence from Indonesia.

Hakam, Dzikri Firmansyah; Asekomeh, Ayodele O.

Abstract

Indonesia's geographical spread as an archipelago results in a unique and sophisticated electricity distribution. Consequently, PLN, Indonesia's state-owned electricity company, faces several challenges in implementing a robust gas monetisation scheme given these peculiar features of Indonesia's electricity sector. We identify and evaluate the risks and critical issues regarding Indonesia's gas monetisation policy formulation and implementation, particularly the changing regulation and reforms of the past three decades. We surmise that a sound energy policy of gas investment and utilisation by PLN and other energy stakeholders is fundamental. This will manifest in sound business strategies, especially in addressing contractual difficulties and infrastructural deficiencies in securing long-term gas supplies for gas power plants. Some positive approaches are already being adopted by the Indonesian electricity sector stakeholders to tackle the challenges in gas transportation like small scale LNG, marine LNG and CNG but these efforts need to be consistently pursued over the planning horizon.

Citation

HAKAM, D.F. and ASEKOMEH, A.O. 2018. Gas monetisation intricacies: evidence from Indonesia. International journal of energy economics and policy [online], 8(2), pages 174-181. Available from: http://www.econjournals.com/index.php/ijeep/article/view/6005

• Journal Article Type: Article
• Acceptance Date: Jan 28, 2018
• Online Publication Date: Apr 5, 2018
• Publication Date: Apr 30, 2018
• Deposit Date: Apr 5, 2018
• Publicly Available Date: Apr 5, 2018
• Journal: International journal of energy economics and policy
• Electronic ISSN: 2146-4553
• Publisher: EconJournals
• Peer Reviewed: Peer Reviewed
• Volume: 8
• Issue: 2
• Pages: 174-181
• Keywords: Gas monetisation; Longterm gas supplies; Gas transportation
• Public URL: http://hdl.handle.net/10059/2863
• Publisher URL: http://www.econjournals.com/index.php/ijeep/article/view/6005