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Indonesia Renewable Investments

October 10, 2013 all-day
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Hotel Ciputra Jakarta
Jl. Letnan Jenderal S. Parman
Palmerah,West Jakarta City 11480
USD 1,500
Tatyana MedvedevaE-mail

Indonesia has had the lowest volatility in economic growth of any OECD or BRIC economy over the past decade, while its economy in the short term is conjectured at close to 7% growth per year. Even higher demand is anticipated in the future with an annual growth rate of 9.2% expected to continue until 2019. With the government implementing 11 key reforms to boost foreign investment and promote growth through streamlining the process of starting a business in Indonesia, foreign direct investment (FDI) is predicted to reach US$22.5 billion in 2013.The amount of money allocated to develop infrastructure in Indonesia is vast, and is estimated to reach US$194.7bn with US$73.3bn of that specifically allocated to developing power and energy infrastructure.

The government of Indonesia is committed to mitigating climate change and has announced that the country will reduce greenhouse gas emissions by 26 percent by 2020. Fossil fuels dominate the country’s energy supply. To mitigate the local environmental impacts and diversify the fuel mix as a hedge against fossil fuel price volatility, the government is launching a program to develop 10,000 megawatts of generation capacity by 2014 through a program of predominantly renewable energy. With 55% of new production being slated towards renewable power generation, total private sector investments by IPPs are expected to reach US$ 11 billion by 2014. The government of Indonesia is committed to reducing greenhouse gas emissions by 26% by 2020. In addition the Clean Technology Fund Investment Plan for Indonesia proposes co-financing of US$400 M to support Indonesia’s goals of providing 17% of total energy use from renewable energy by 2025. Indonesia alone holds 40% of the world’s total geothermal reserves, however currently only less than 4% is being developed, leaving the sector wide open for growth. The Government of Indonesia have promoted Feed-in Tariff; 1.Hydro < 10 MW, 2.Biomass < 10 MW, 3.Geothermal, Next will promote FIT for:1.Solar PV < 10 MW, 2.Wind < 10 MW.


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