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Indonesian President calls for review of ambitious energy strategy

Indonesian President calls for review of ambitious energy strategy Jakarta, Indonesia (source: flckr/ fidzonflickr, creative commons)
Alexander Richter 21 May 2016

Indonesia's President Joko Widodo has called for a review of the ambitious energy target by the country, which includes evaluating current tender process, financing and management by utility PLN.

Earlier this month, Indonesian President Joko Widodo has called for a review of the ambitious energy target by the country. Under the current strategy, Indonesia plans to develop up to 35,000 MW (35 GW) of power generation capacity to meet an ever increasing electricity demand.

As Reuters reports, “He emphasised that there should be a thorough review while the deadline is still a long way off, so that we don’t encounter obstacles when we’re already halfway,” according to Minister Sudirman Said.

The review should include a closer look at the tender process to financing and management by the state utility PLN.  There are concerns by investors and the business community about how realistic those targets are under current conditions and status of development.

Under the program, Indonesia plans to build about 300 power plants, with the majority thereof coal-fired power plants, but also include renewable energy fuelled power plants, such as from geothermal.

Source: Reuters