Geothermal Power Development Indonesia: Reducing Reliance on Fossil Fuels

Indonesian President Joko Widodo (often called Jokowi) emphasized that the government of Indonesia needs to boost development of renewable energy. Although Indonesia contains huge potential for renewable energy (particularly geothermal energy), the share of renewable energy in Indonesia’s total energy use currently stands at around 5 percent only, the remainder being fossil energy. By providing incentives, attractive tariffs and an easier licensing and registration process, the government can generate more investment in this sector.

Recently, the Indonesian government set a target to raise the share of renewable energy in the country’s total energy mix to 19 percent by the year 2019, hence significantly reducing the role of oil in the country’s energy mix. Currently oil accounts for 47 percent of Indonesia’s energy use and makes the country dangerously susceptible to the effects of volatile global oil prices.

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Posted August 20, 2015 by repit in News

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