Indonesia’s liquefied natural gas exporter. Indonesia produced 825,

Indonesia’s competitive
advantage is its access to natural resources specifically in the energy sector.
Indonesia has an absolute advantage because they are able to extract and export
crude oil and petroleum gas more efficiently than competing countries. This
surplus of key natural resources allows Indonesia to export their surplus to US
and China, their key trading partners. Indonesia has been active in the oil and
gas sector for the past 125 years and is known as the fifth-largest liquefied
natural gas exporter. Indonesia produced 825, 000 bpd of oil in 2015. Canadian
businesses have an opportunity to support the energy sector by assisting in the
development of needed projects. Using their experience, expertise and knowledge
in building infrastructure, they can invest in Indonesia and provide them with
top oil and gas infrastructure composition which includes the building of
pipelines to maintain and develop the energy sector.  A number of Canadian businesses currently
operate in Indonesia, some of which include Manulife Financial, Sunlife
Financial, Husky, Talisman Energy and Sherritt. 
The competitive advantage offered by Indonesia can benefit Canadian
businesses in the energy sector in many ways in many ways. Getting
these resources out of the ground and shipped to other places provides Canada
the opportunity to invest in infrastructure development of Indonesia. For
example, energy demand and manufacturing activities are creating great
investment opportunities in the building of pipelines to distribute the crude
oil and petroleum gas to other countries. Moreover, vehicle ownership in
Indonesia has increased significantly from the past year creating a higher need
of petroleum gas and creating more business opportunities for Canadian
businesses. The growing consumption of petroleum in Indonesia is causing them
to create a storage and oil trading hub for this gas, which is an excellent
opportunity for Canadian investment. Also, new gas plants will be needed if the
need for petroleum continues to increase. Both, SNC Lavalin and Hatch,
currently have offices in Indonesia which create opportunities for the Canadian
company to bid on projects to invest in Indonesia in the future. 


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