Energy demand in Indonesia is likely to triple by 2030, driven by continued economic growth, according to industry experts. Speaking in Jakarta at the plenary session of the 36th Annual Convention and Exhibition of the Indonesian Petroleum Association (IPA), officials from both the public and private sectors said this trend highlighted the urgent need for new policies to ensure the security of the country's energy supply.
The National Energy Council has forecast that energy demand in Indonesia will rise threefold by 2030, from the current annual consumption of 150 million tons of oil equivalent. At the same time, the country's GDP is expected to reach US$4 trillion by this time, up from US$1 trillion currently.
Speaking at the plenary session of the 36th IPA Convention & Exhibition, Herman Agustiawan, of the National Energy Council, said the government needed to have clearer targets and incentives for energy infrastructure, to ensure the security of the country's long term energy supplies.
Nur Pamudji, President Director of state electricity company PT Perusahaan Listrik Negara, said that Indonesia currently uses about 30,0000 megawatts of electricity per annum, with only 70 percent of households are connected to power. As the country's population is expected to grow, so is the demand for electricity, he said.
Last year, power demand rose by 11 percent and up to 30 percent was contributed by higher consumption by Indonesian middle class, he added.
"We must take a serious approach towards energy generation and we need breakthroughs in policy to make Indonesia more attractive for companies to invest," Suryo Bambang Sulisto, Chairman, Kadin. "Without energy there will be no investment and without investment there will be no jobs," Sulisto said.
The key points of the discussion at the IPA plenary session focused on the need for Government policies to help drive increased investment in the energy sector to support further development of resources, including renewable and unconventional energy sources.
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