Indonesian Oil & Gas Production Boom Predicted for 2018-2019

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Researched by Industrial Info Resources Australia (Perth, Australia)--Against the backdrop of an approaching global downturn and the end to the international commodities boom, Indonesia is experiencing renewed economic optimism. It is Southeast Asia's largest market, and one of the fastest-growing economies in the region. Backed by rich endowments of natural resources and home to more than 255 million inhabitants, the world's fourth-most-populous nation is quickly emerging as a global economic giant and regional powerhouse.

Low labor costs and a young population remain key drivers for sustained market growth, and opportunities abound for global investment in the emerging economy. Under the current government, foreign investment will be prioritized for long-term economic growth and will be essential to Indonesia's rise. The Investment Coordinating Board (BKMP) has been leading an initiative to attract funds for use in massive infrastructure projects that include new ports, power stations and roads designed to accelerate modernization and growth. A strengthening economic and political climate mean that Indonesia now represents one of Asia's best emerging market-growth opportunities for investors.

Oil & Gas Industrial Strategy
The domestic Oil & Gas Industry is one such sector attracting huge investment and a vital piece of the Indonesian economy. The government will seek to develop this industry to stimulate foreign investment, so that the country might reap the rewards of enormous revenues generated from rich oil and gas reserves. The government also hopes that investment in this industry will accommodate the expected rise in domestic demand over the next decade.

Click on the image at right for a table showing the industrial spending activity for all planned oil and gas plants throughout Indonesia.

The data shows there are 75 grassroot oil and gas plants in planning that are worth more than $70.86 billion. Of these plants, at least two are scheduled to undergo planned expansions costing $2 billion. In addition, Industrial Info has tracked investments of $923.5 million in major drilling projects throughout the region that present early opportunities for investors and contractors alike.

Earlier this year, Indonesia Energy and Mineral Resources Minister Sudirman Said proclaimed that investors from Oman had expressed a desire to invest more than $7 billion in oil and gas projects in the country. Such interest aligns with the Indonesian government's strategy to attract foreign investment specifically within the oil and gas industry vertical. The anticipated supply of investment capital would be in addition to the 172 capital projects already planned for the oil and gas sector, with a total investment value of more than $91.5 billion.

Forecast
Economic growth, supportive demographics and a weak oil price will support domestic consumption and spur further investment in the Oil & Gas Industry. Data gathered by Industrial Info indicate that 16 projects worth a total of $17.58 billion are expected to commence construction throughout 2016. The next cycle of projects to commence construction will not occur until at least mid-2017.

Click on the image at right for a graph detailing scheduled completion dates for related projects in Indonesia.

Industrial Info's industrial data support the prediction that Indonesia will experience a production boom from 2018 at the earliest. The completion timeline that reinforces this argument has been plotted on the graph below. Industrial Info expects that planned development of offshore gas reserves will propel the industry forward and provide ample opportunities for business, contractors and investors alike for years to come.

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.