Energy

Development of Indonesia’s energy sector to meet rapidly rising demand and sustain economic growth is arguably the most daunting challenge facing the administration of President Joko Widodo. A combination of economic growth, increased urbanization and cheap energy supplies, resulting from fuel and electricity subsidies, has led to sharp demand growth. Total primary energy consumption has risen by 70% over the last decade, while electricity demand growth has exceeded annual GDP expansion over the same period. At the current rate of economic growth, demand for energy is forecast to rise by around 7% per year, while electricity demand is expected to grow by upwards of 8% per annum over the next decade, according to the Ministry of Energy and Mineral Resources.

This chapter contains an interview with Amien Sunaryadi, Chairman, SKK Migas; and a roundtable with Heru Dewanto, President-Director, Cirebon Power; Roberto Lorato, CEO, Medco Energi Internasional; and Garibaldi Thohir, President-Director, Adaro Energy.