ABSTRACT
Indonesia is famous for low-sulfur oil, and output ranks about tenth in the world. Indonesia’s first liquefied natural gas plant, located near Bontang in East Kalimantan and costing $700 million, was about to start production in the spring of 1977. The Indonesians are learning about oil technology from actual operations. Indonesia must resolve the difficulties with Pertamina before moving ahead on the programs it envisages. The Indonesians have been very successful in pioneering contractual arrangements, but recent developments have caused some concern. The planners have given increased attention to the overall energy policy, because alternatives exist, particularly in the light of newly found coal. Indonesia needs to provide more and better-trained technicians and strengthen resource investigation and research support groups to help develop the mineral industries. Near the end of February 1977, Indonesia and Rio Tinto Zinc reached an understanding on a key mining contract covering copper and other minerals.
