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Economy, Energy

Natuna Islands, Cilacap, Dumai, Badak, northern Sumatra

Indonesia is well endowed with energy resources. It is an important producer of crude petroleum, yielding 568 million barrels in 1999. Refineries are located at Cilacap in West Java and at Balikpapan in East Kalimantan. A hydrocracker unit, which breaks down petroleum into simpler forms of energy such as gasoline, is located at Dumai on Sumatra. In 1999 Indonesia produced 66.3 billion cu m (2.3 trillion cu ft) of natural gas, mainly from Arun in northern Sumatra and Badak in East Kalimantan. Proven oil reserves total 10.4 billion barrels, and gas reserves are equivalent to 14.5 billion barrels of oil, much of which is located in the South China Sea near the Natuna Islands. Even after the decline of oil prices in the mid-1980s, the economy has been particularly dependent on oil exports. In 1999 fuels made up 23 percent of Indonesia’s exports and 16 percent of its imports.

Hydroelectric facilities, including a large dam on the Asahan River in North Sumatra, generate 15 percent of Indonesia’s electricity. Thermal stations powered by locally produced oil and coal provide almost all of the remaining electricity.

Article key phrases:

Natuna Islands, Cilacap, Dumai, Badak, northern Sumatra, East Kalimantan, North Sumatra, Balikpapan, West Java, South China Sea, oil exports, Arun, imports, energy resources, gas reserves, natural gas, coal, barrels of oil, gasoline, fuels, Refineries, economy


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