The Impacts of Low Oil Price on Indonesia’s Reform Agenda

The current trends in oil industry spark the need to revisit urgent and broad governance reform measures. With oil prices falling by more than 50% since last June, petroleum producers across the world must take stock of the risks facing their economies. In Indonesia, the price decline has corresponded with the first months of the Jokowi government’s efforts to revamp the way Indonesia manages its petroleum sector. While the price decline appears to be facilitating the government’s efforts at subsidy reform, it poses a significant challenge to the plans to reinvigorate investment in upstream exploration and to bolster the capacity of Pertamina. NRGI will present a briefing on the global consequences of the current oil market environment for resource rich countries, in order to spark a conversation with leading experts on what the price decline may mean for Indonesia. The discussion will address the country’s options for limiting the downside risks associated with the market shift, and for seizing opportunities for market reform and increased accountability, which could confer benefits that will outlive the downturn.

Organized into two sessions, the panelists will tackle the proposed questions:

Session 1: Consequences

• What is the impact of these global market evolutions on the country’s ambitious sector reform agenda?
• How does the price decline impact Indonesia’s goal of reinvigorating investment in exploration?
• To what extent does the decline affect plans to revitalize Pertamina?
• Are there opportunities that come along with the price decline?

Proposed Panelists

• Mr. Sudirman Said*, Minister of Energy, Minerals and Coal for keynote speech
• Mr. Roberto Lorato, Director, Indonesian Petroleum Association (IPA)
• Mr. Lin Che Wei, Capital Market and Financial Analyst and founder of KataData
• Faisal Basri*, Economist, Head of Oil and Gas Reformation Team
• Mr. Ben Bingham, Resident Representative in Indonesia, International Monetary Fund

Moderator

Ms. Yuli Ismartono, Publisher of TEMPO English Magazine

Session 2: Options

• If there were opportunities in low oil price, how would the country take advantage of them?
• Would these include subsidy reform? What else?
• What lessons of good governance and sound economic management should Indonesia consider as it seeks to weather the price decline and emerge stronger on the other end?

Proposed Panelists

• Mr. Daniel Kaufmann, President, Natural Resource Governance Institute
• Mr. Widhyawan Prawiraatmadja*, Head of Performance Management Unit, Ministry of Energy, Minerals and Coal
• Mr. Susilo Siswoutomo, Board of Commissioner of Pertamina
• Ms. Natalia Soebagjo, Chair of Executive Board, Transparency International-Indonesia
• Ms. Helmi, Head of Department, Regency Secretariat, Bojonegoro

Moderator

Ms. Yuli Ismartono, Publisher of TEMPO English Magazine