July 2011

Country file

INDONESIA
TABLE OF CONTENTS 1. 2. INTRODUCTION................................................................................................... 2 GENERAL OVERVIEW ........................................................................................ 3 2.1. Map of Indonesia ........................................................................................... 3 2.2. Main economic indicators............................................................................... 3 2.3. Trade data Indonesia in the world................................................................. 4 2.3.1. 2.3.2. 2.3.3. Indonesia trade with the world (mio )........................................... 4 Main trading partners (% of the total) ............................................... 4 Main composition of merchandise trade by main commodity group (%)......................................................................................... 4 Global figures (mio ) ....................................................................... 5 Detailed figures (merchandise trade in mio , 2010) .......................... 5

2.4. Trade data - EU with Indonesia ...................................................................... 5 2.4.1. 2.4.2. 3.

ENERGY OVERVIEW........................................................................................... 6 3.1. Indonesia at a glance ...................................................................................... 6 3.1.1. 3.1.2. 3.1.3. 3.2.1. 3.2.2. 3.2.3. 3.2.4. 3.2.5. 3.2.6. Selected indicators (2008)................................................................. 6 Production, consumption (details)..................................................... 7 CO2 emissions and indicators ............................................................ 8 Oil production, reserves, discoveries .............................................. 9 Gas production, reserves, discoveries............................................. 9 LNG liquefaction capacities .............................................................. 9 Coal production, exports.............................................................. 10 Imports of coal from Indonesia to the EU ....................................... 10 Imports of palm oil used for biofuels from Indonesia to the EU ....... 11

3.2. Indonesia by sector oil and gas .................................................................... 9

3.3. Indonesia by sector electricity.................................................................... 11

Legal notice: The European Commission does not guarantee the accuracy of the data included in this publication, nor does it accept responsibility for any use made thereof.

1.

INTRODUCTION

Indonesia is an important trade partner of the European Union. The trade has been on average increasing by almost 4% since 2006 and Indonesia has been constantly recording a trade surplus with the EU, mostly in agricultural products. The next category where Indonesia has a trade surplus is fuel and mining products. This category represents one third of Indonesian total merchandise exports. The country's energy balance shows the predominant role of coal. It is the main energy source in the primary production, but owing to exports its importance in the gross inland consumption is smaller (48% in primary energy production vs. 19% in gross inland consumption in 2008). On the other hand, biomass and wastes are very important in Indonesia's energy mix, which can be explained by the geography of the country, with many islands having difficult access to fossil fuels. Indonesia produces hard coal, brown coal and sub-bituminous coal, with hard coal representing the bulk of the coal production (close to 90%). Around 85% of produced hard coal is steam coal and the rest is coking coal. Consequently also the EU imports of Indonesian coal are predominantly composed of steam coal. In 2009 the imports from Indonesia represented 7% (12 million tonnes) of the total EU imports of hard coal. The imports to Italy and Spain accounted for almost 90% of this quantity. The IEA data show that Indonesia was in 2008 the second largest net exporter of coal in the world. Although Indonesia has considerable crude oil reserves, it has been a net importer of oil since 2005. On the other hand, it exports natural gas and imports none of it, making the country the seventh largest net exporter of this fuel. The exports of natural gas are destined to the countries in the Pacific area. BP figures show that in 2010 Indonesia exported 41.25 bcm of natural gas. 24% of this volume was exported to Singapore and Malaysia as pipeline gas and the rest as LNG. 54% of LNG was exported to Japan, followed by South Korea, Taiwan and also Mexico. The EU has currently not been importing natural gas from Indonesia. The EU imports about 4.5 million tonnes of palm oil and Indonesia is the most important supplier. In 2009 EU imported EUR 2.7 billion of palm oil, out of which 1.5 billion were imports from Indonesia. Most of the palm oil imported to the EU is used for food and cosmetics. However, the share of palm oil used for biofuels increases (from 3.5% in 2007 to 5.5% in 2009). Therefore the priority for the EU is to ensure that palm oil fulfils the sustainability criteria for biofuels as laid down in the directive on renewable energy (2009/28/EC), most notably greenhouse gas emissions savings and land-use requirements.

2.

GENERAL OVERVIEW

2.1. Map of Indonesia

Source: CIA

2.2. Main economic indicators

2007 Size (km2) Population (Million) GDP (Billions $) GDP per capita ($) GDP share per sector (%): Agriculture Industry Services GDP growth (%) Inflation, average consumer prices (%) Unemployment rates (%) Current account balance (% of GDP) Sources: IMF, CIA, World Bank Note: 1 estimate 14 48 38 6.3 6.0 9.1 2.4 15 49 37 6.0 9.8 8.4 0.02 16 49 35 4.5 4.8 8.0 2.0 5.1 7.5 0.9 225.6 432.2 1,916 228.6 511.5 2,238 2008 2009 1,811,569 231.5 539.4 2,3291 234.6 695.1 2,963 2010 (f)

2.3. Trade data Indonesia in the world 2.3.1. Indonesia trade with the world (mio )
Imports 2008 2009 2010 85,843 67,483 100,088 Yearly % change 61.5 -21.4 48.3 Exports 91,054 80,982 115,456 Yearly % change 12.0 -11.1 42.6 Balance 5,211 13,499 15,368 Trade 176,897 148,465 215,544

Source: DG TRADE

2.3.2. Main trading partners (% of the total)

2009 Imports Singapore China Japan European Union United States Exports Japan European Union China United States Singapore Source: DG TRADE 16.4 12.1 10.1 9.7 9.1 16.5 14.8 10.4 9.2 7.5

2.3.3. Main composition of merchandise trade by main commodity group (%)

2009 Merchandise exports Agricultural products Fuels and mining products Manufactures Merchandise imports Agricultural products Fuels and mining products Manufactures Source: WTO 12.4 24.1 63.5 21.1 36.4 39.1

2.4. Trade data - EU with Indonesia 2.4.1. Global figures (mio )

Yearly % change 13.2 4.0 6.1 -13.9 17.6 Share of total EU imports 0.9 0.9 0.9 1.0 0.9 Yearly % change 4.4 8.0 10.6 -11.8 20.8 Share of total EU exports 0.4 0.4 0.5 0.5 0.5

Year 2006 2007 2008 2009 2010 Average annual growth

(2006-2010)

Imports 12,293 12,790 13,569 11,677 13,729

Exports 4,999 5,401 5,975 5,273 6,372

Balance -7,294 -7,389 -7,594 -6,404 -7,357

Trade 17,292 18,191 19,544 16,949 20,101

2.8

6.3

3.8

Ranking among the EU trading partners (2010) Source: DG TRADE

22

35

32

2.4.2. Detailed figures (merchandise trade in mio , 2010)

Source: DG TRADE

3.

ENERGY OVERVIEW

3.1. Indonesia at a glance 3.1.1. Selected indicators (2008)

Indonesia Total primary energy supply (Mtoe) Total primary energy supply/population (toe/capita) Total primary energy supply/GDP1 (toe/thousand $) Electricity consumption/population (kWh/capita) CO2 emissions (Mio tCO2 from fuel combustion) Source: IEA Note: 1 prices from base year 2000 198.68 EU-27 1,751

0.87

3.51

0.80

0.18

589

6,384

385.38

3,849

3.1.2. Production, consumption (details)

2007 2008

333.3 Mtoe

347.0 Mtoe

Note: values under 1 % are not presented. 191.8 Mtoe 199.9 Mtoe

Note: values under 1 % are not presented. 127.2 Mtoe 135.1 Mtoe

OECD/IEA [2011]
Note: natural gas liquids are liquid or liquefied hydrocarbons recovered from natural gas in separation facilities or gas processing plants. Natural gas liquids include ethane, propane, butane, pentane, natural gasoline and condensate (Source: IEA).
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3.1.3. CO2 emissions and indicators

2008 2009

403.7 MtCO2

413.3 MtCO2

Source: EIA Note: emissions from the consumption of petroleum, natural gas, and coal and the flaring of natural gas Indicators for year 2008 CO2/total primary energy supply (t CO2/toe) CO2/population (t CO2/capita) CO2/GDP1 (kg CO2/$) Source: IEA Note: 1 prices from base year 2000 Indonesia 1.94 EU-27 2.20

1.69 1.56

7.72 0.39

3.2. Indonesia by sector oil and gas 3.2.1. Oil production, reserves, discoveries
Year Annual production* [Mbbl] World rank* (calculated by EIA) Production to date* [Mbbl] Reserves (proven and probable) as calculated by IHS [Mbbl] World % Reserves (proven) as calculated by EIA [Mbbl] World rank in proven reserves (calculated by EIA) Reserve to production ratio [year] 26 22,800 9,100 0.6 % 4,300 2007 350 2008 360 21 (2008) 23,200 8,800 0.6 % 4,370 25 (2008) 25 28 23,500 8,600 0.6 % 3,990 2009 300

Copyright (2011) Petroconsultants SA * the figures are related to total oil production, i.e. crude oil, natural gas liquids and other liquids Note: the figures are rounded.

3.2.2. Gas production, reserves, discoveries

Year Annual production [bcm] World rank (calculated by EIA) Production to date [bcm] Reserves (proven and probable) as calculated by IHS [bcm] World % Reserves (proven) as calculated by EIA [bcm] World rank in proven reserves (calculated by EIA) Reserve to production [year] Copyright (2011) Petroconsultants SA Note: the figures are rounded. 62 1,800 4800 2.3 % 2770 2007 77 2008 78 12 (2008) 1,900 4700 2.2 % 2660 12 (2008) 60 65 2,000 4700 2.2 % 3000 2009 72

3.2.3. LNG liquefaction capacities

LNG Terminal Arun Bontang Tangguh Masela Donggi-Senoro Sources: EIA, Oil & Gas Journal Capacity (Mt/year) 3.5 22.6 7.6 4.5 2.0 Status Operational Operational Operational Planned Planned

Legal notice: The European Commission does not guarantee the accuracy of the data included in this publication, nor does it accept responsibility for any use made thereof.

3.2.4. Coal production, exports

Year Annual production [Mt] World rank (calculated by EIA) Net exports [Mt] Source: EIA 201.2 2007 260.6 2008 273.6 6 (2008) 209.9 237.0 2009 301.5

3.2.5. Imports of coal from Indonesia to the EU

Source: European Commission

Source: European Commission

10

3.2.6. Imports of palm oil used for biofuels from Indonesia to the EU

Source: European Commission

3.3. Indonesia by sector electricity

OECD/IEA [2011]

11

 OECD/IEA [2011]

Source: EIA Note: net generation + electricity imports - electricity exports - electricity distribution losses

12