Redistributing Indonesia’s Resources

The domestic energy demand in Indonesia doubled from 1986 to 1997.

In order to stabilize the energy balance, the Indonesian government set principal objectives in the energy sector to minimize the domestic consumption of tradable fuels by substituting non-tradable alternatives such as surplus coal, geothermal energy, and natural gas.

Under these circumstances, the Indonesian government decided to utilize the natural gas sources scattered in South Sumatra for Java Island. The Indonesian government requested the Japanese government to provide financial aid for a gas transmission pipeline project to install pipelines from South Sumatra to West Java using JICA official development assistance (ODA) loans.

The total length of the gas pipeline is approximately 500 km from Sumatra to Jakarta across the Sunda Strait, where ocean currents are strong.

OC Global as a member of the consultant group was engaged with Pt. Perusahaan Gas Negara to provide project management consulting (PMC) services. Since the project straddles multiple disciplines, a skilled and knowledgeable PMC team was the key to smooth implementation, along with sound knowledge and experience of procurement under the JICA ODA loan system.