Electricity in Indonesia: Plenty Natural Resources but Shortage of Electricity

Despite having abundant natural resources at its disposal (including coal and gas), Indonesia has difficulty to supply enough electricity to its people and businesses. Robust economic growth over the past decade has given rise to increased domestic demand for electricity but the country has not been able to adequately meet demand resulting in frequent blackouts and in one of the lowest electrification rates (the percentage of Indonesian households connected to the nation’s electricity grid) in the region (about 80.4 percent at end-2013).

This means that about 20 percent of the total Indonesian population (consisting of about 250 million people) has no access to electricity yet and as Indonesian demand for electricity grows by approximately 8.4 percent per year (higher than the annual growth rate of electricity generation) the electrification rate can worsen if no further investments in the country’s power or electricity industry occur.

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Posted August 19, 2014 by repit in News

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