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Indonesiau 2015 Secure Sustainable Together Indonesia 2015 Please note that this PDF is subject to specific restrictions that limit its use and distribution. The terms and conditions are available online at www.iea.org/t&c/ 2015 Energy Policies OECD/IEA, © Beyond IEA Countries 2015 OECD/IEA, © Secure Sustainable Together Indonesia 2015 2015 Energy Policies OECD/IEA, © Beyond IEA Countries INTERNATIONAL ENERGY AGENCY The International Energy Agency (IEA), an autonomous agency, was established in November 1974. Its primary mandate was – and is – two-fold: to promote energy security amongst its member countries through collective response to physical disruptions in oil supply, and provide authoritative research and analysis on ways to ensure reliable, affordable and clean energy for its 29 member countries and beyond. The IEA carries out a comprehensive programme of energy co-operation among its member countries, each of which is obliged to hold oil stocks equivalent to 90 days of its net imports. The Agency’s aims include the following objectives: n Secure member countries’ access to reliable and ample supplies of all forms of energy; in particular, through maintaining effective emergency response capabilities in case of oil supply disruptions. n Promote sustainable energy policies that spur economic growth and environmental protection in a global context – particularly in terms of reducing greenhouse-gas emissions that contribute to climate change. n Improve transparency of international markets through collection and analysis of energy data. n Support global collaboration on energy technology to secure future energy supplies and mitigate their environmental impact, including through improved energy efficiency and development and deployment of low-carbon technologies. n Find solutions to global energy challenges through engagement and dialogue with non-member countries, industry, international organisations and other stakeholders. IEA member countries: Australia Austria Belgium Canada Czech Republic Denmark Estonia Finland France Germany Greece Hungary Ireland Italy Secure Sustainable Together Japan Korea Luxembourg Netherlands New Zealand Norway Poland Portugal Slovak Republic © OECD/IEA, 2015 Spain International Energy Agency Sweden 9 rue de la Fédération Switzerland 75739 Paris Cedex 15, France Turkey www.iea.org United Kingdom 2015 Please note that this publication United States is subject to specific restrictions that limit its use and distribution. The European Commission The terms and conditions are also participates in OECD/IEA, available online at www.iea.org/t&c/ the work of the IEA. © Table of contents TABLE OF CONTENTS 1. EXECUTIVE SUMMARY AND KEY RECOMMENDATIONS ......................................................................... 9 Executive summary ..................................................................................................................... 9 Substantial progress .................................................................................................................... 9 Improve and streamline institutions and policies ..................................................................... 10 Enhance the legal and regulatory environment ........................................................................ 11 Improve and extend infrastructure ........................................................................................... 11 Phase out subsidies and move to market pricing ..................................................................... 12 Ensure the sustainability of the energy sector .......................................................................... 13 Establishing a domestic gas market .......................................................................................... 13 Key recommendations .............................................................................................................. 13 PART I POLICY ANALYSIS ..................................................................................................... 15 2. GENERAL ENERGY POLICY ..................................................................................................................... 17 Country overview ...................................................................................................................... 17 Economy .................................................................................................................................... 17 Institutions ................................................................................................................................ 18 Supply and demand ................................................................................................................... 19 Institutions ................................................................................................................................ 22 Energy policies ........................................................................................................................... 24 Energy subsidies ........................................................................................................................ 30 Infrastructure and land acquisition ........................................................................................... 33 Energy security .......................................................................................................................... 33 Assessment ................................................................................................................................ 34 Recommendations .................................................................................................................... 36 References ................................................................................................................................. 37 3. NATURAL GAS ....................................................................................................................................... 39 Overview ................................................................................................................................... 39 Supply and demand ................................................................................................................... 39 Institutions and regulation ........................................................................................................ 44 Government policies ................................................................................................................. 46 Industry structure ...................................................................................................................... 47 Emergency preparedness .......................................................................................................... 49 Natural gas prices ...................................................................................................................... 50 Assessment ................................................................................................................................ 51 Recommendations .................................................................................................................... 53 References ................................................................................................................................. 53 2015 3 OECD/IEA, © Table of contents 4. OIL ......................................................................................................................................................... 55 Overview ................................................................................................................................... 55 Supply and demand ................................................................................................................... 55 Government policies ................................................................................................................. 58 Industry regulation .................................................................................................................... 59 Industry structure ...................................................................................................................... 61 Pricing ........................................................................................................................................ 63 Oil supply structure ................................................................................................................... 64 Emergency preparedness and planning .................................................................................... 65 Assessment ................................................................................................................................ 68 Recommendations .................................................................................................................... 69 References ................................................................................................................................. 70 5. COAL ...................................................................................................................................................... 71 Overview ................................................................................................................................... 71 Supply and demand ..................................................................................................................
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