Department of Commerce
International Trade Administration
F
ew countries offer the renewable energy the islands of Java and Bali; the rest is scattered
potential of Indonesia. The country is widely among the country’s 6,000 other inhabited
Manufacturing and Services
home to 40 percent of the world’s known islands. Indonesia’s economy grew 4.3 percent
Competitiveness Report
geothermal resource and offers opportunities in in 2009, in line with the country’s 3–6 percent
wind, solar, biomass, and hydropower. By 2025, growth rate since the Asian financial crisis of the May 2010
Indonesia aims to install 6.7 gigawatts (GW) of late 1990s.3 Future growth is likely to accelerate
new renewable energy capacity by increasing the as the world recovers from the global recession of Country Background . . . . . . . . . 1
proportion of renewables from 7 percent to 15 2008–2009. Status of Energy Market . . . . . . . 2
percent of total energy production.1
Although Indonesia lacks strong policy incentives Existing Renewable Energy
Market . . . . . . . . . . . . . . . . . 3
Country Background for renewable energy, it provides companies with
Indonesia has a thriving economy at the intersec- a stable political system and a growing economy Drivers of Renewable Energy
tion of the Pacific and Indian oceans, between in which to do business. Projects range from Development . . . . . . . . . . . . . 5
Asia and Australia. It is home to 240 million large-scale power plants with power purchase
Barriers to Renewable Energy
people and is the world’s fourth-largest country agreements (PPAs) negotiated with PLN, the Development . . . . . . . . . . . . . 6
in terms of population. Its territory covers ap- state-owned utility company, to development
proximately 17,500 islands. 2 (See Box 1 for more projects coordinated by multilateral development Investment Climate . . . . . . . . . . 7
facts.) Eighty percent of the population lives on banks or local governments. Competition often Past Commercial Engagement . . . 7
End Notes . . . . . . . . . . . . . . . 8
Important Contacts . . . . . . . . . . 9
regional context.
The United States Export–Import Bank can pro-
vide funding to Indonesian buyers looking to pur-
chase U.S. technology, and it is seeking to increase
lending through a new credit facility. The Over-
seas Private Investment Corporation can provide
project finance in addition to equity investments
and political risk insurance. In addition, the U.S.
Agency for International Development and the
U.S. Trade and Development Agency can help
with development-related projects and technical
capacity building.
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