Subscription Economy Could Stimulate Gas Industry

Abstract

What is called a “subscription economy” is not so far removed from the everyday life. More consumers, especially those in their 20s, are embracing this new model that favors subscriptions over ownership. Take Netflix. Indonesian viewers, who once downloaded video files from online hard drive service operators, are signing up for the global video streaming platform. They watch as many films, drama series and animated features as they want on mobile devices and TV sets, paying fixed monthly fees. With well-designed policy directives such as frontier area risk reduction by the government; support for gas market aggregation to encourage the development of greater economies of operational efficiency; and improved incentives for gas exploration, the gas development effort in Indonesia would expand. And, given its proximity to local markets and other Asian countries, Indonesia will be able to tap into the large gas market, thereby increasing Indonesia’s regional influence and participation in the global value chain. In addition, the government has demanded and accomplished a high degree of technology transfer in the oil and gas industry. A well trained, professional work force already exists for gas exploration. The multiplier effect for expanded gas exploration is staggering. Certainly, a national political consensus is needed for smooth implementation of an LNG import policy.