The Australian Trade Commission (ATC) has identified Indonesia as a key target market for home-grown companies involved in clean energy products, expertise and services who want to grow and develop their businesses.
That news comes according to a recent study the ATC carried out with key executives with inside knowledge into the workings of the country and Indonesia’s future renewable energy direction.
Australia already exports $4.5 billion worth of products and services to Indonesia which, with a population of over 234 million, is the fourth most populous nation in the world and one of the world’s highest performing emerging markets.
To ensure sustainable growth in Indonesia, its government has set a target that would see 25 per cent of total energy consumption filled by clean energy sources by 2025.
Indonesia’s Economic master plan 2011-25 recently identified 17 projects worth $22.26 billion for the country to implement in coming years, including investments in hydroelectric and solar power plants. The country is also introducing a number of policy and incentive programs to also encourage private investment particularly in hydroelectric power, geothermal, solar, bioenergy and wind.
Energy and Mineral Resources Minister Jero Wacik said Indonesia will stimulate renewable energy growth by providing incentives for developers and raising the feed-in tariff for renewable energy.
“I am so optimistic that…year by year there will be much new and renewable energy we produced and we will develop fast,” he said.
Other incentives include a tax holiday for exploration projects and higher subsidies for renewable energy.
Wacik said the recent increase in the subsidy for geothermal power plants was made to attract more investors.
Indonesia’s immense renewable energy potential includes 450 MW of mini/micro hydropower; 50 GW of biomass; 3 to 6 metres per second of wind power and 480 kWh per square meter per day of solar power.
The AusTrade report has identified several areas of opportunities for Australian clean energy companies, including:
- Education – training, research and development for renewable energy development and deployment, particularly in hydropower and solar photovoltaic,
- Co-operation – public sector advisory regarding regulations, standardisation and testing, capacity building and tendering systems/processes,
- Independent power producers – geothermal, hydro and biomass/biogas projects
- International donor programs – consulting or as technology providers focusing on technical assistance, optimisation and efficiency.
Austrade is encouraging Australian businesses with suitable capabilities to contact the organisation and present an overview of their company, which will then be featured in an Indonesian-language program disseminated to key contacts in clean energy.