Top Indonesian politicians and officials led by Vice President Boediono, seem to have finally discovered that there is a link between energy pricing and energy shortages and they appear to be making a renewed commitment to rational pricing. Indonesia is short of gas because investors have been reluctant to bring badly needed investment capital to the industry. Information is sparse and often poor for bidders seeking to develop oil and gas fields. There are also political and economic uncertainties over gas pricing policy, as when the government suddenly imposes a domestic obligation on a specific gas field. The government has lacked commitment so far to building downstream infrastructure, preventing gas from being delivered to domestic customers.
Indonesian Energy Pricing's Missing Link
Indonesian Energy Pricing's Missing Link
Indonesian Energy Pricing's Missing Link
Top Indonesian politicians and officials led by Vice President Boediono, seem to have finally discovered that there is a link between energy pricing and energy shortages and they appear to be making a renewed commitment to rational pricing. Indonesia is short of gas because investors have been reluctant to bring badly needed investment capital to the industry. Information is sparse and often poor for bidders seeking to develop oil and gas fields. There are also political and economic uncertainties over gas pricing policy, as when the government suddenly imposes a domestic obligation on a specific gas field. The government has lacked commitment so far to building downstream infrastructure, preventing gas from being delivered to domestic customers.