Indonesia is the largest economy in Southeast Asia and its economy and its astonishing growth rate is faster than all other emerging-market economies except for China’s. Ever since Indonesia gained its independence in 1949, revenues generated from natural resource extraction—particularly oil and gas—have formed the backbone of Indonesia’s economic development and thereby helped to create the necessary conditions for the recent boom.
However, despite the nation’s rich oil and gas reserves, oil production has steadily decreased in the last decade as a result of disappointing exploration efforts and declining production at older fields. As a result of the country’s failure to jump start new productive projects that could replace the ailing production sites Indonesia has ceased to be an exporter and, in fact, suspended its OPEC membership. While Indonesia’s future as a major oil exporter seems questionable at best, things are looking much better in the gas sector. In response to the rising global demand for the resource Indonesia gas sector underwent a series reforms triggered by the passage of the Oil and Gas Law No. 22/2001. The law answered the demands of reform and decentralization of the upstream and ended the state-owned Pertamina monopoly status in upstream natural gas projects. After a decade of reforms and restructuring, Indonesia has become the sixth largest net exporter of natural gas.
Although currently the biggest gas companies operating in Indonesia are foreign-owned, the sector is still not completely deregulated. Upstream gas business can be carried out directly by foreign companies, but they may not directly engage in downstream activities, although they may establish subsidiaries that require the approval of the Indonesian Investment Coordinating Board (BKPM) and the obtaining of downstream business licenses. A full and complete opening of the gas sector seems not far ahead, however, as the BKPM’s recent policies indicate that it will permit full foreign ownership of a company engaged in downstream gas activities in the natural gas sector.
As a result of this continued deregulation of the gas industry, the Indonesian Energy Ministry, in fact, forecasts investments in the oil industry and gas sector to rise by 37% by the end of 2012 to $18.3 billion, thanks to major projects including the construction of multiple floating gas terminals and other initiatives in downstream industries.
Is your company already investing or plans to enter the Indonesian oil and gas market? We can help you get your point across to government official and platform crews alike. EVS Translations is a specialist translation company for gas and oil translations.
However, translation services for a complex industry such as the gas sector are one of the most difficult as they call for extremely specialized vocabulary. As a FPAL registered company and long standing language service provider for industry leaders, we can offer language solutions tailored to our gas translation clients’ specific business objectives.
Our technical translators have extensive experience of the industry-specific concepts and terminology enabling us to produce consistently accurate gas translation and localization services.
Contact us now to discuss your needs and requirements in regards to our gas translation services and we will be happy to find a professional solution; or come and visit us at Gastech and Petex exhibitions.