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Indonesia is a major player in the world energy economy, due to its resource wea ...

Indonesia is a major player in the world energy economy, due to its resource wealth, openness to trade and investment, and a strategically favourable location in East Asia. This is according to the first International Energy Agency (IEA) review of the country, Energy Policy Review of Indonesia 2008. The IEA conducts in-depth energy policy reviews of each of its 28 member countries every five years to strengthen their policy and to share good examples of other member countries’ energy policy and programme experiences. The Indonesia report shows that the strengths outlined above have made the country a key global exporter of oil, gas and coal. It is the world’s leading steam coal exporter, a substantial LNG exporter, and until recently, a net oil exporter. It now faces the serious challenge of fast-rising domestic energy demand with declining oil and gas production. The IEA report highlights six areas for priority attention. These include: progressively and transparently reducing fuel and electricity subsidies; ensuring energy policy is properly and fully implemented; improving the clarity of the investment framework; helping the energy regulators do their job more effectively; and harnessing a sustainable development agenda, particularly with regard to renewable energy and energy efficiency.
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