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Indonesia’s electrifying utilities industry brightens growth

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The utilities industry consists of three main markets, electricity, gas and water. The electricity market proved to be the most lucrative utilities industry as it dominated 63.55% share of the market. Indonesia is the largest country in Southeast Asia; its main economic activity is agriculture, thus water utilities play an important role in agriculture production. Water consumption in the country is expected to increase to more than 356 billion cubic meters per annum by 2015.

Although water sources in Indonesia account for 21% of total water resources in Asia Pacific, lack of clean water is becoming a serious problem in Indonesia. Nearly half of the population in Indonesia lacks access to safe water and more than 70% of the 220 million person population rely on water sources that are deemed potentially contaminated. To achieve the Millennium Development Goals (MDGs), the Indonesian government needs to improve water supply and sanitation services.

For energy sources, PT Perusahaan Listrik Negara (PLN) has the sole right to produce and distribute electricity throughout Indonesia. The demand for electricity is projected to grow at more than 8% per year until 2020. Meanwhile, Indonesia has a proven natural gas reserve of 3.0 trillion cubic meters. Perusahaan Gas Negara (PGN) is the market leader in both transmission and distribution businesses in Indonesia.

 Key Findings

  • Demand for electricity in Indonesia is projected to grow at a pace of more than 8% per year until      2020.
  • By the end of 2011, PLN had a total installed generation capacity of 29,268 MW, an increase of 8.8% over the previous year. Remarkably, the growth rate in 2011 was the highest it has been in the last five years.
  • Indonesia plans to more than triple the share of new and renewable energy to the total national primary energy mix by 2025.
Electricity Supply in Indonesia

Electricity Supply in Indonesia

Source: CEIC

This is just a quick glimpse into the EMD Report: Indonesia Utilities Sector. Learn more and purchase now>>


Filed under: Asia, Energy, Indonesia, Industry, Utilities

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