"More Jakarta, less Geneva"

Indonesia is South-East Asia's largest economy and, arguably, one of the most promising. Lying not far behind from emerging economies Russia and China, Indonesia “has been showing continuous robust macroeconomic growth for almost a decade”, having fully recovered from the Asian Financial Crisis of the late 1990s.

Australia's recently elected Prime Minister, Tony Abott, promised '"more Jakarta"'/'"less Geneva"' in his election campaign and as been delivering, making Indonesia his foreign visit since taking office. The Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA) aims to facilitate and encourage trade between the two nations. Foreign powers would be well advised to follow suit. Whilst Australia is clearly keen to develop bilateral relations with Indonesia, and has been taking positive steps to do so, it remains clear that many foreign investors are yet to discover the true economic potential of this rising power, Indonesia.

According to the Indonesian Petroleum Association, in the Asia Pacific region, Indonesian oil production is second only to China, and its gas production is second to none. Lukman Mahfoedz, president of the Indonesian Petroleum Association and CEO of Medco Energi, the country’s largest private oil-and-gas firm, believes that the Indonesian Oil and Gas Industry, worth almost $70 billion annually, needs the expertise and capital of foreign firms to realise its full potential. Whilst foreign investors may have been spooked by recent events, including corruption scandals and accusations of resource nationalism, Indonesia's president, Susilo Bambang Yudhoyono, has proposed fiscal incentives to aid firms in covering deep drilling and enhanced oil recovery costs, suggesting that he too wishes to encourage foreign investors. Vowing to cut bureaucracy and improve '"clarity, certainty and consistency (in the legal framework)"', he has set up a task force to come up with initiatives to incentivise investment in Indonesia's Oil & Gas sector. 

The Indonesia Energy, Oil & Gas Summit 2014, 20th & 21st March, being held in Nusa Dua, Bali,  is the perfect platform to explore the latest investment opportunities within the Indonesia Energy and Oil & Gas industry, and discover the latest regulatory changes, technological advancements, innovations and techniques. Click here for further information.