The outlook is broadly positive for Indonesia's power sector, though the market continues toface significant challenges. Rising consumption demands combined with Indonesia's substantial coal andnatural-gas reserves mean the country is well placed to support the rapid expansion of thermal power andnumerous projects are in the pipeline. That being said, issues surrounding land appropriation,environmental concerns and lack of funding have all previously resulted in extensive project delays and asa result the government's ambitious targets for the sector are unlikely to be realised.
Latest Updates And Structural Trends
Hydropower is well established in Indonesia and the sector continues to expand. Netherlands-based jointventure (JV) firm Tidal Bridge has won a contract for the Palmerah Tidal Bridge project at LarantukaStrait, including a tidal power plant with installed capacity of 18MW to 23MW, potentially expanding to90MW to 115MW.