• Indonesia is reorienting energy production away from exports to serve its growing domestic consumption.
• Indonesia is a significant and well-established player in the international oil and gas industry, though production has failed to keep up with demand in recent years.
• International oil companies, particularly Chevron, dominate Indonesia's upstream oil sector. State-owned energy company PT Pertamina must balance its needs as a corporation against its mandate as a national oil company to meet domestic demand.
• Aging infrastructure and fields suggest the country will struggle to meet production targets in the short term.
• Indonesia's refinery output primarily serves the growing domestic market.
• Natural gas production has increased by over a third since 2005. While Indonesia still exports about half of its natural gas, domestic consumption is increasing.
• Indonesia was the world's eighth largest net exporter of natural gas in 2011. The majority of exports go to Japan as LNG shipments and to Singapore via pipeline connections.
• Indonesia was the third-largest exporter of liquefied natural gas (LNG) in 2011, following Qatar and Malaysia. Expected growth in gas demand led the government to pursue policies that secure domestic LNG supplies for the local market.
• In 2011, Indonesia became the world's largest exporter of coal by weight.
• Indonesia has 6.1 billion short tons of recoverable coal.
• Indonesia's government encourages the use of coal in the power sector, due to relatively abundant domestic supply and as a way to reduce the use of expensive diesel and fuel oil.
• Generation capacity growth in Indonesia has lagged behind the pace of electricity demand growth, leading to power shortages and a low electrification ratio.
• Indonesia was the third largest geothermal generator in the world in 2011.

Analysis Last Updated: January 9, 2013