Jakarta Post: CBM could redraft Indonesia’s energy charts

Coal bed methane (CBM), once touted as a solution to Indonesia’s energy deficit, has not met all the initial expectations, with below-target exploration and production. A number of factors have contributed to this disappointing result and addressing these challenges could help Indonesia emerge as an important energy player. 

Just recently, the government — as reported by The Jakarta Post — decided to lower its CBM production target to only 8.9 million metric standard cubic feet per day (mmscfd) for 2015, far below its initial target of 500 million mmscfd. Indonesia has huge CBM reserves of around 453 trillion cubic feet, mainly in Kalimantan and Sumatra. 

This drastic revision of the CBM production target is due to the fact that many projects already approved by the government could not go through as expected. Business people in the energy sector are no longer enthusiastic about investing in CBM projects. 

Three factors have contributed to this lackluster mood: first, contradictory regulations; second, unaddressed environmental issues; and third, limited use of CBM to generate industrial activities in Indonesia.  MORE