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Looming energy crisis to be concern for new government in Indonesia

Jakarta, Indonesia (source: flckr/ fidzonflickr, creative commons)
Alexander Richter 20 Kas 2014

An overdependence on fossil and the consequent energy crisis might be nigh in Indonesia. This might be the start of a new renewable energy era in the country if the new government plays its cards right.

A very interesting article in today’s Jakarta Post highlights a topic that has been debated a lot lately, the need of Indonesia to diversify its energy sources and to address the ever-growing demand for energy by its population.

On of the main points made in the article highlights the overemphasis that the country has had on oil and gas, creating a severe dependance on these resources. According to the Jakarta Post, “Analysts have stated that due to stagnant explorations and the deteriorating condition of oil and gas fields, Indonesia has seen a declining trend of oil and gas lifting. With a peak production of 1.6 million barrels per day (bpd) in the 1980s, Indonesia’s production last year dropped to around 850,000 bpd. This year it is expected to decrease even further.”

These are bleak forecasts, yet with the recent change in geothermal exploration legislation, this might be the opportunity to develop geothermal energy in Indonesia at a faster pace than ever before. The same article points out that “only around 4.1 percent, or 1,341 MW of the total potential, has been utilized. Sitting atop 40 percent of the world’s geothermal reserves, Indonesia has the third-largest geothermal potential in the world after the US and the Philippines.”

A final comment is done in the article by the Indonesian Geothermal Association Chairman, Abadi Poernomo saying that “regulatory problems and a lack of incentives for energy diversification and innovations had led to the slow development of country’s energy diversification. It is the right time to ask the new government under President Joko “Jokowi” Widodo to focus not only on the development of fossil fuels, but also on the development of renewable energy. Indonesia should diversify its energy mix, move away from unsustainable fossil fuels and toward more renewable energy sources, which are sustainable and friendly to the environment”

To read the full article, please follow the link below.

Source: Jakarta Post