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Indonesia’s future oil demand dependent on transportation system’s consumption

August 23, 2021

Jakarta Post: 

The Upstream Oil and Gas Special Regulatory Taskforce (SKK Migas) has projected a significant increase in domestic oil and gas consumption over the next decades, but whether this will happen depends largely on the transportation sector. 

Institute for Energy Economics and Financial Analysis (IEEFA) analyst Elrika Hamdi said whether oil consumption would rise in the long run depended on the government’s ability to transform Indonesia’s transportation system. Given that the lion’s share of oil consumption comes from the transportation sector and a transition to new and renewable energy is underway, this sector should strongly affect future oil demand. “Oil and gas forecasts are […] volatile and depend on growing demand,” Elrika told The Jakarta Post on Friday.

[Divya Karyza] 

More:Expert expresses doubt over projected oil, gas demand growth

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