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Ten Ideas To Reshape Indonesias Energy Sector PDF
Ten Ideas To Reshape Indonesias Energy Sector PDF
September 2014
Arief Budiman
Kaushik Das
Azam Mohammad
Khoon Tee Tan
Oliver Tonby
Mmbbl
Bcm
4,010
Global ranking
XX
1,360
24
11
Indonesia
Indonesia
Geothermal
Billion tonnes
GW
28
28
10
Indonesia
Indonesia
1 As of end of 2013
SOURCE: Rystad Energy U Cube, July 2014, Geothermal Energy Association; US Department of Energy; Emerging Energy Research (IHS); World Geothermal
Congress; Energy Information Administration (EIA); BP Statistical Review of World Energy 2014
SELECTED COUNTRIES
Average value delivered to government at $100 oil1, excluding government equity take (%)3
French
Guiana
China
Mozambique
Qatar
Thailand
US2
Brazil
Canada2
India
UK
Russia
Brunei
Norway
Indonesia
Australia
Mexico
97
88
75
57
50
42
60
60 60
67
80
83
69
51
45
26
1 Brent oil price assumption: $100.00/bbl in 2013 inflated at 2% thereafter. Cash flows discounted at 10% from Jan 2013 until lifetime of the asset.
2 Average of different concession regimes in the country
3 Government take refers to government revenues including royalties, taxes, state profit share and other fees or levies, but excludes any national oil company
(NOC) participation. It is expressed here as the percentage of pre-take cash flow in a regime.
SOURCE: Wood Mackenzie Global Economic Model
Assuming 30,000 km/ year for each vehicle, Rupiah 5,000/ l gasoline
fuel subsidies, Rupiah 400/ kWh electricity subsidies, 0.25 Kwh/ km
electricity consumption and 0.1 l/ km fuel consumption.
* * *
We believe Indonesia has the resources and the people
to achieve its growth aspirations. We hope that the
above ideas will allow the country to unleash some of
that potential. Indonesia deserves it.
Acknowledgements
The authors would like to thank Stuart Bodden, Rahul
Gupta, Michele Pani, Giovanni Bruni, Penny Burtt and
Mrinalini Reddy for their contributions in conducting
the research and analysis, and helping to produce
this report.
Oliver Tonby is the Managing Partner for Southeast Asia. Kaushik Das is the Chairman of McKinsey Indonesia
where Arief Budiman is President Director. Khoon Tee Tan and Azam Mohammad are Partners.