The intent of this report is to provide a summary of Indonesia's oil and gas sector in an effort to assist government policy makers and private sector companies better understand this important market. The regional financial crisis of 1997-98, from which Indonesia is only now recovering, highlights the importance of this sector to the Indonesian economy. The report does not necessarily reflect the view of the U.S. Government. The Embassy has attempted to obtain the most accurate data from Indonesian Government sources. However, statistics drawn from different sources often display inconsistencies. This is the case between several tables in the appendices. To the extent possible, we have tried to indicate the source of the information. However, trends can be accurately depicted by observing data within a given table. This report uses an exchange rate of Rp 8,400 to one U.S. dollar, unless otherwise indicated. Finally, statistics are often revised at a later date. The Embassy plans to publish a mid- year supplement to this report, containing end of year oil and gas data for 2003.