Until the year 2007, Indonesia has oil reserves of 8.4 billion barrels, of which 3.99 billion barrels have (proven) and 4.41 billion barrels is still a potential backup. Most oil reserves are located in Sumatra Indonesia Central 4155.67 MMSTB, followed by East Java 954.26 MMSTB
Indonesian natural gas production in 2007 is estimated BCF of 2522, declining 14.67% compared to production in 2006. During the years 2000 - 2007, Indonesian gas production trends tend to fluctuate. The development of Indonesian natural gas production has decreased an average of 1.8% per year.
Indonesian natural gas consumption in 2007 is estimated to decrease 2.18% compared to 2006. During the years 2000 - 2006 Indonesian natural gas consumption shows the increasing trend, with an average increase of 0.16% per year.
About 60% of Indonesian natural gas production processed back into natural gas liquid Liquefied Natural Gas (LNG). In addition to LNG, Indonesia also produces Liquefied Petroleum Gas (LPG), which is produced from petroleum refinery processes. Since 2000 until the year 2007 Indonesia LNG production is decreasing, with an average decrease of 3.65% or about 934,898 tons each year.
Indonesian LNG exports in 2006 from the volume decrease of 3.41% compared to 2005. However, when viewed in terms of value, the amount increased by 13.73% from the previous year. Until April 2007, LNG exports have reached 629,543,330 MMBTU with a value of U.S. $ 5.5 billion. During the years 2000 - 2006, export volume of LNG that shows declining trend, with an average decrease of 2.63% per year, and increased 8.34% of the value each year.
State export LNG from Indonesia is a product of Japan, Korea and Taiwan. Until the end of 2006, the 66.18% export LNG to Japan is Indonesia, followed by Korea at 20.53% and the rest is Taiwan.
In addition to consumption in the country, the LPG produced by Pertamina by both factory and refinery gas are also exported to foreign countries. View based on its development in recent years, LPG export volume is quite large, although decreasing. As happened in 2006. Export of LPG in Australia is experiencing a significant decrease of 71.47% compared to 2005.
During the years 2000 - 2006, export volume and value of LPG showed a trend to decline, with an average decrease of the respective 15.61% and 7.86% each year.
Previous development of the export value of Indonesian LPG proportionate to the inverse of LPG export volume growth in the last few years was caused by the rupiah's exchange rate is very low, which caused the price increase in the average export LPG. Export price of LPG is very high that the government issued a policy on tariffs, export of LPG. To avoid the export take-off that is too high and maintain stability in the demand of LPG in the country, the government implement a policy to increase tariffs/export taxes.
Overall in the last few years, this consumption of LPG in the country tends to increase. In 2006, LPG consumption of 989,751 tons recorded a drop of 2.16%. In general, the consumption of LPG in the country have increased an average of 0.84% per year. Oil and gas potential in Indonesia is still quite prospective to continue to be developed considering the many areas in Indonesia that have large reserves of oil and natural gas but can not entirely in the exploration.
Based on the data obtained in the Directorate General of Oil and Gas, Ministry of Energy and Mineral Resources, in the year 2007, the government offers to the various parties, whether originating from within the country and from abroad to conduct exploration for more than 23 oil and gas blocks in the entire Indonesia. The location of oil and gas blocks offered by the government is as follows.
Oil and gas industry in the land of water in the future will continue to be developed considering the dependence of high against the product. With national oil production, which continues to show declining trends, the consumption of fuel continues to increase each year must be transferred as soon as possible to use other energy sources is one of the LPG.
With the kerosene conversion program to LPG which is currently being implemented by the government, the role of LPG in the future will be large, especially for fuel consumption of the household.
Still lack the facilities and infrastructure that supports the conversion program, particularly Charging Station and Bulk Transportation Elpiji (CSBT), then this is a good enough opportunity for the private sector to infuse capital. Thus CSBT industry has bright prospects enough to continue to grow given the many areas in Indonesia that does not have CSBT conversion program to support the oil land.