Long known for maintaining low fuel prices despite its large population, Indonesia has recently begun to take meaningful steps to reform a decades-old policy that has bloated federal budgets and often fallen short of its purported aim of helping the less fortunate. Policymakers in Indonesia, as in many countries around the world, have long seen energy subsidies as a quick and...
The year 2015 is a landmark one for South-east Asia, with the much-anticipated arrival of the ASEAN Economic Community (AEC) due by the end of the year. This event will have far-reaching consequences across a whole range of economic, political, social and cultural fields, with the impact on the transport sectors of ASEAN member states also likely to be profound. Given...
Although the focal point of renewable energy development in Indonesia has been geothermal resources, of which the country holds over a third of the global total, in recent years solar power has gained new attention as a viable source. As an equatorial country, Indonesia is well-placed to reap the benefits of new solar options, with off-grid projects offering new ways to...
One key development in the new wave of Indonesian infrastructure programmes is a major change in the way they will be funded. The government is set to play a much bigger role in financing, directly through increased central and local government budgets, and indirectly through enhanced funding opportunities for state-owned enterprises (SOEs). The private sector stands to...
Marking its first year in power, Indonesia’s new government has launched a major drive to boost the nation’s transport, power and water infrastructure. The administration in Jakarta is taking a leading role in helping to overcome the challenges facing the industry, and the private sector has been given a clearer, more efficient legal and administrative framework within which...
As Indonesia’s economy keeps chugging along with annual growth rates around 6% in recent years, its appetite for energy continues to expand in parallel. Demand for primary energy hit 130m tonnes of oil equivalent (mtoe) in 2013, and GDP growth of 8% a year through to 2025 forecast by the National Energy Council (NEC) is expected to push growth in energy consumption up to 7.3%...
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