Whatever Happened to Indonesia’s Mighty Oil and Gas Industry?

Once a cornerstone of the economy, Indonesia’s oil and gas sector is in a slump, even as the country’s appetite for energy soars.

Hit by a drop in global prices, changing regulations and competition from neighbors that are proving more attractive to international energy companies, Southeast Asia’s biggest economy is facing a decline in oil revenue and steadily rising fuel imports.

With an economy growing at a 5 percent clip and the government embarking on a vast infrastructure roll out, the oil and gas industry is sounding alarm bells over the decline of a sector that five years ago accounted ...