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%...
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...
After years of treading water, Indonesia’s energy sector is finding new optimism in the fresh faces being appointed to key government positions by the new president, Joko Widodo, with the hope that they will be able to renew investor interest in the industry and spur a wave of development. The changes at the top come at a critical time, as myriad factors continue to buffet the...
With the spectre of an electricity shortfall looming larger with each passing year, the Indonesian government is looking to coal-fired thermal power plants to provide a quick and easy solution. Coal has many advantages over other forms of power generation in Indonesia: it is cheaper, more established technologically and abundant. It is also seen as preferable to diverting...
Already the world’s third-largest geothermal power producer, Indonesia is poised to enter a fresh phase of expanding this resource, with a new law setting the stage for further investment. By smoothing out many regulatory wrinkles for developers, the government hopes to tap the many subterranean thermal hotspots that dot the country as electricity producers scramble to meet...
For most of its history, the Indonesian banking sector has been highly regulated, with the government often intervening in a heavy-handed manner to achieve policy goals and correct larger economic concerns. The results have been mixed, with the authorities erring at times on the side of too much control and at other times on the side of too much freedom, with some of the...
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