INFRASTRUCTURE OF ENERGY DISTRIBUTION IN INDONESIA

Indonesia is a country which is provided with tremendous resources of energy.

Speaking of which oil and gas energy resources. However, there are still problematical issues
that occur i.e the decreasing stock of non renewable energy resources and the increasing
demand of energy consumption in line with the expansion of people’s activities (Picture 1).

Picture 1. Energy Consumption per energy resources per year

To facilitate these issues, there are important things to be prepared and facilitated. One of which
if the infrastructure of the energy itself. Indonesia, as believed, is still having troubles to cope
with the issue of lackness in energy infrastructure. In Global Competitiveness Report 2015-
2016 arranged by Global Economic Forum (WEF), Indonesia is ranked 62 from 140 countries related
to the development of energy infrastructures that sustained in average position. Why this issue is so
important, it is because the dependence of a country’s economic movement to its infrastructure.
Energy infrastructure also effects the businesses, for instance, the increasing logistics cost, unhealthy
business climate (rough competitiveness), etc.

Table 1. Reference Energy System

Speaking about energy infrastructures, it can be devided into 2 points :
 Energy conversion Infrastructure such as Power Stations, Oil and rig or refinery
 Distribution and transmission Infrastructure oil and gas pipeline system, power distribution,
port, and Oil plant.

From the research that have been made by BAPPENAS these are Indonesia’s energy infrastructure
conditions
a) Gas resource

Picture 2. Indonesian Gas Reserves 2005

Indonesian Gas reserves is calculated 179,961 TSCF (January 1st 2005), with proven reserves
P1 97,256 TSCF probable reserve P2 44,816 TSCF and possible reserve P3 37,888 TSCF.

Table 2. Gas Plants per 2001

b) Oil resource

Picture 3. Indonesian Oil Supply Chain Map (Pertamina 2001)

If we look at the map and linkage of Oil supply and Distribution it can be devided into
4 regions, which are Sumatera, Jawa-Bali-NTT-NTB, Kalimantan, Papua-Sulawesi. It
can be viewed through this table

Table 3. Supply regions

From the updated issues that can be learned Indonesia is still developing its strength in
Energy Infrastructures. Masela Block is one of the example that can be seen
representing the government’s intention to expand Indonesia’s energy strength.
Indonesian government also have been taking actions to take over the existing oil plants
that for a long time controlled by multinational companies, i.e Chevron, Total E&P in
Rumbai and Balikpapan. Government through its oil and gas national state owned
company, Pertamina, has taken several oil and gas plants. It is believed that if
Indonesian government can ensure and convince more investors to look up
Indonesian’s energy potential, it is possible for Indonesia to be powerful and adequate
of energy resources and usage.