Indonesia Energy Articles & Analysis

Chapter | Infrastructure from The Report: Indonesia 2018

An infrastructure boom is under way in Indonesia, after the administration of President Joko Widodo committed to developing $414.6bn of new public works projects between 2015 and 2019, including large-scale transportation, utilities and ICT projects, as well as new schools, hospitals, and water supply and treatment plants. In recent years the government has mobilised a coordinated effort to...

With investment in industrial zones, SEZs, infrastructure and priority industries set to increase in the coming years, Indonesia remains extremely well positioned to capitalise on its position as a regional leader.

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What can be done to further facilitate the development of independent power producers (IPPs)?

 

As Indonesia’s natural gas production continues to recede from its peak in 2009, the government is looking to boost upstream activity by proposing four high-potential oil and gas projects for the list of national strategic projects (PSN). Under this programme, which was initiated by presidential decree in 2016, infrastructure projects deemed...

 

Seeking to support private investment for Indonesia’s 35-GW national power development initiative, regulators rolled out two new regulations in January 2017 intended to encourage efficient, fair and transparent development of the electricity supply. These regulations, which focus specifically on the power purchase agreement (PPA) between...

 

As the oil and gas sector has contributed progressively less to the state budget, policymakers are seeking ways to boost revenue from the industry. Walking the tightrope between an attractive investment climate and greater state revenue shares has proven challenging, particularly since the slump in oil prices began in 2014. New government...

 

Like many rapidly developing countries, Indonesia faces the dilemma of how to increase electricity-generation capacity while minimising tariffs levied on consumers. On one hand, Indonesia maintains ample domestic coal reserves which have traditionally served as an inexpensive, easy-to-access fuel supply. On the other hand, the world has become...

 

Investment and development in maritime infrastructure and greater support for the shipbuilding industry look set to raise Indonesia’s freight-handling capacity, moving the country closer towards its goal of becoming a top global maritime player.