Indonesia Energy

To ensure energy security and meet growing demand for electricity, the Indonesian government is looking to expand its generation capacity through a mix of traditional and alternative sources, including geothermal and new coal technology.

Incentives such as import tax reductions and feed-in tariffs could help lead Indonesia’s drive to boost investment in the country’s underachieving renewable energy sector. 

With global coal prices showing little signs of recovery, calls amongst industry players in Indonesia to limit production of coal and increase the focus on value-added operations are growing louder.

As incoming Indonesian president Joko “Jokowi” Widodo prepares to take the reins on October 20, speculation is growing that the way in which he tackles cutting the huge fuel subsidies may come to define his presidency. 

A wave of energy exploration and extraction projects is expected to be rolled out in Indonesia over the coming months, with an increased focus on developing new offshore reserves.

With oil and gas imports weighing on its trade balance, Indonesia is taking steps to reduce domestic demand for fuel and boost local refinery capacity. These moves come as the International Energy Agency (IEA) has released a report projecting that energy demand in the South-east Asian country is set to nearly double over the next two decades.