Indonesia Coalbed Methane: Bountiful Promise Held Up By Institutional Paralysis
Christopher Len
The publication of a report in 2003 which claimed that Indonesia has some of the best undeveloped Coalbed Methane (CBM) potential in the world brought an initial wave of excitement and optimism to the Indonesian government and investors. However, subsequent CBM production has been slow to pick up and has fallen far behind government targets due to the institutional paralysis facing Indonesia. Sentiments among the government, operators and investors have since dampened. Any attempts by the new in-coming president, Joko “Jokowi” Widodo to fast track CBM development will likely result in limited success.
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