Indonesian Overview

1
Indonesian Electricity Overview
 Indonesia has the largest economy in South East Asia with a GDP of USD 1.24 trillion and
GDP growth of 6.0% expected for 2015.
 With the country’s vast coal resources it is still hugely reliant on coal-fired power plants.,
however due to the size of the huge archipelago only around 80% of the 255 million people
in the country have access to electricity. With demand so high Electricity, Power and
Renewable Energy Indonesia 2015 is the perfect platform for companies to showcase
their products to the world’s fourth most populace country.
 The Indonesia government has Infrastructure projects worth USD 150 billon planned for the
next five years with USD 6.47 billion earmarked for Energy related projects. The
government only has 30% of the budget needed for these projects inviting direct
foreign investment to fill the gap.
 The state electricity company’s (PLN) target for national electrification rates are projected
to reach 86% by 2016 due to Fast Track Programs for capacity expansion to meet
Indonesia’s growing demand.
 Domestic consumption of petroleum products is heavily subsidized. Promoting the
development of Power generation based on diesel and other petroleum based fuels.

2
Indonesian Electricity Overview
 The Indonesian electricity sector is heading
towards a crisis, unless significant investments
are made. Indonesia’s electricity generation
capacities are outdated and insufficient, operating at
an average capacity factor of 66%, and the country
experiences daily blackouts lasting on average 4
hours a day. In addition, Indonesia has an estimated
annual demand growth of 9% and is currently 25
percentage points behind the electrification target
rate of 90% by 2020.

 Renewable generation facilities account for 10%

of total on-grid installed capacity 6% of the total
on-grid electricity generation in 2014 came from
renewable energy sources. On-grid renewable
capacity consists mainly of large-scale hydropower
and geothermal, while off-grid generation capacity
include also small-scale hydro, biomass and solar
power generation.

3
Indonesian Electricity Overview

 Several new laws and regulations are implemented

to stimulate renewable energy production. Feed-in-
tariffs for renewable electricity production are
introduced, independent power producers are allowed
and encouraged to.

 The renewable generation capacities have to

double to around 13 GW to meet the 15% renewable
target by 2025. Current renewable capacities are at
6.1 GW [2.9 GW [on-grid) and 3.2 GW [off-grid)). Most
of the increase in absolute terms is expected within
geothermal, but also small hydro, PV and wind power is
expected to increase significantly. The technical
potential is in any case substantial and offers large
opportunities for investors and developers invited to
participate. It is still, however, not straight-forward for
private players to invest and operate in this field.
4