WHEN Exxon was chosen as Pertamina’s business partner in the exploitation of Cepu Block, the government’s reasoning was simple. It hoped the oil giant would begin production as fast as possible. In 2006 the government’s coffers were depleted by fuel subsidies when the price of world oil soared, while domestic production was predicted to continue falling. So Mobil Cepu, the Exxon and Pertamina joint venture, began in 2007.

It was hoped that