It is widely known that international LNG markets have become more competitive due to emergence of new LNG exporters with large capacity and more economical natural gas reserves. In the meantime, Law 22/2001 brought about fundamental changes to the Indonesian Oil and Gas sector.
The Independent Team of Bimasena, which includes IIEE personnel, perceived that significant changes in the international LNG market conditions and its impacts to the Indonesian LNG undertakings have not been sufficiently acknowledged. An academic exercise carried out by the Team reviewed the past and present LNG arrangements, assessed incompatibilities under the new market structure, and explore alternatives to overcome the difficulties. The objectives of the initiative are (i) to sustain the integrity of existing LNG undertakings, and (ii) to develop the proper structure and clarity of future LNG business.
This initiative is part of a continuous effort to contribute towards workable, transparent and investor-friendly government regulations and policies in the energy sector. These thoughts were documented in a working paper, which had been communicated to stakeholder. Discussion forums were conducted to gather their perspectives. The process highlighted attainable solutions along with the range of pros and cons around the matters. This form of participatory approach is expected to facilitate the formation of appropriate decisions.