Countdown to 35GW INDONESIA'S AMBITIOUS ELECTRIFICATION GOALS, AND HOW FAR THE NATION STILL HAS TO GO - AHK Indonesien
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VOL. XXVI / 2 / 2017
THE MAGAZINE OF THE GERMAN-INDONESIAN CHAMBER OF INDUSTRY AND COMMERCE
Countdown to 35GW
INDONESIA’S
AMBITIOUS
ELECTRIFICATION
GOALS, AND HOW FAR
THE NATION STILL
HAS TO GO
ON THE SPOTLIGHT HIGHLIGHT
Budi Karya Sumadi, EKONID 47th Annual
Minister of Transportation Members Meeting
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Contents
24 Countdown to 35GW
With only a few years left for the Indonesian
government to fulfill its target of 35,000 MW
of additional electricity, we take a look at the
state of the national power industry and what
the country’s government is doing to reach
this ambitious goal.
Column REGULARS
5 common issues for Germans
8 Member Updates
doing business in Indonesia 36 EKONID Highlights
40 EKONID News
34 Intercultural Trainer Silke
Irmscher makes a case for
44
50
EIBN News
Time Out
why cultural competence matters
52 News in Brief
for Germans doing business in
56 Trade Fairs Report
Indonesia.
On The Spotlight
Budi Karya Sumadi
22 Indonesia’s Transportation
Minister tackles questions
on his department’s critical role in
modernizing the nation.
CEO Talk
Time Out
Knowledge is Power Verde by Farpoint
32 Eric Paulsen, President
Director of TÜV SÜD
Indonesia, shares some updates
on his companies latest activities in
50 A new property in the
Kuningan City aims to provide
a modern, tropical and luxurious ON THE COVER
Indonesia. living experience in the heart of
Indonesia’s ambitious electrification
Jakarta.
goals, and how far the nation still
has to go
02 SOROTAN EDITION 2 / 2017
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T UR K I S H A IR L INE S .C OM
Foreword
THE MAGAZINE OF THE GERMAN-INDONESIAN
CHAMBER OF INDUSTRY AND COMMERCE
Managing Director & Chief Editor: Jan H. Rönnfeld
Editor: Andra Wisnu
Journalist & Photographer: Iwan Nasution
Creative Manager: Bagus Ajie Mandiri
Growing brighter
Digital Manager: Syafruddin Arief
Production Supervisor: Andi A. Maulana Dear readers
Print:
PT. Harapan Prima Printing The second half of 2017 came to a close with a bit of good news. Standard &
The publisher is not liable to any content printed in Poor, the last of the three major credit rating agencies, elevated Indonesia’s
this magazine credit rating to an “investment grade” status of BB+ with a stable outlook.
Advertisement: Mei Tobing, Lembayung Fratiwi
This is not at all surprising as the other two credit rating agencies, Fitch
Ratings and Moody’s Investor Service, have already elevated Indonesia
Contributors: Anis Novani, Blessy Trinandha, Mike credit rating status to investment grade years prior, in 2011 and 2012
Neuber, Silke Irmscher respectively. Nevertheless, it is good to see all the positive efforts at
Digital Edition: http://indonesien.ahk.de/en/ growing the Indonesian economy that has been done over the past years
publications/media/sorotan/ being acknowledged.
Bank Details:
EKONID has recognized and campaigned early and relentlessly about the
Deutsche Bank, Jakarta
potential that Indonesia has for businesses in Germany and elsewhere
000-5355-01-0 (Euro)
CIMB Niaga Bank around the world. It may be that the road is still long for this still developing
Jakarta, Menteng Branch country to reach that potential, but to not take part in that journey would be
800055828700 (Rp) a missed opportunity.
Next Issue: Next issue of SOROTAN will be published
In this edition, we’re taking a look at one of Indonesia’s most ambitious
in September 2017
programs: the 35,000 Megawatt electrification program. Energy remains
one of the toughest challenges this country has to face. And yet it is also key
to solving many of its problems such as overpopulation and the imbalanced
distribution of goods and services. Our cover story, “Countdown to 35GW”,
takes a look at all the efforts the Indonesian government has taken towards
achieving that goal, and what German companies can expect moving
forward, particularly in the field of renewable energy.
Debuting in this edition of SOROTAN, due to popular demand, is the section
“Time Out”. While we are a predominantly business-centric publication, we
recognize the need for the occasional rest and relaxation. This section will
discuss the various venues and occasions to do just that in Jakarta and
elsewhere in Indonesia. You’ll find our report in Pg. 50 of this magazine.
Finally, I would like to take this opportunity to report that the 47th EKONID
Annual Members Meeting concluded successfully earlier in May. I welcome
the new members of the EKONID Board of Management: Mr. Martin Feulner
as Vice-Chairman and Mr. Kunardy Lie as Treasurer. I would also like to
SOROTAN is published by EKONID (German-Indonesian Chamber extend my gratitude to our former Vice-Chairman, Mr. Josef Winter, for his
of Industry & Commerce). © Copyright EKONID 2017. All rights years of service at the EKONID Board of Management. We wish him the
reserved. SOROTAN is published quarterly by the Publication best of luck in his future endavors.
together with Design & Communication Department of the
German-Indonesian Chamber of Industry & Commerce. Copying On behalf of the EKONID team and management, we wish you a successful
for other than personal use or internal reference or of articles or second half of 2017.
columns not owned by SOROTAN without written permission of
EKONID is expressly prohibited.
Office: Jl. H. Agus Salim No. 115, Jakarta 10310 Indonesia.
Tel. 6221-3154685, Fax. 6221-3155276
E-Mail: info@ekonid.id, website: www.ekonid.com
Subscription: If you wish to subscribe to the SOROTAN Magazine,
please contact: sorotan@ekonid.id
Contribution: If you wish to contribute your article or if you want
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contact: iwan.nasution@ekonid.id.
Jan Rönnfeld
Global Transport and Logistics
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Be part of the Indonesian-German
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For more information please contact:
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Phone: +62 21 3154685 - Email: mei.tobing@ekonid.idMember Updates
Siemens co-hosts Energy
Forum Indonesia 2017
Energy leaders and executives convene at
inaugural forum co-hosted by Siemens
E
nergy Forum Indonesia 2017 is jointly organized by EPC are PLN, PT PP, Adaro Energy, Barata Indonesia, and
PT Siemens Indonesia and Listrik Indonesia, and Siemens Indonesia.
officiated by the Ministry of Energy and Mineral The Director General for Chemicals, Textile and
Resources, Ministry of Industry and state power utility Miscellaneous Industry, Indonesia Ministry of Industry –
PLN. More than 300 experts attended from the power EPC, Achmad Sigit Dwiwahjono gave his keynote speech at the
power generation and industrial companies, associations start of the second forum focusing on redefining the role
and media. The forum features the theme ‘Supporting of industrial sector to meet the changing needs in power
Indonesia’s energy infrastructure through increased local and productivity. The discussion was moderated by Prof.
content, national capacity building and digitalization.” Iwa Garniwa with industrial speakers from Plantation
“Indonesia is a market with excellent business (HPI-Agro), Petrochemical (Pupuk Indonesia-Energi), IPP
perspectives – especially for Energy, Oil & Gas – as well (Bekasi Power) and Siemens Indonesia.
as for Industry and Infrastructure. We all know that an In parallel, Siemens experts also presented at the
adequate and reliable energy supply is the foundation for technical classes featuring various technology topics
healthy economic growth and social prosperity. Siemens for both the IPP & EPC and Industrial segment. During
is the ideal partner to realize the country’s ambitious the second half of forum, Siemens introduces the role of
goals for national capacity building in combination with Digitalization in the Energy Sector by Anand Menon, Chief
extended localization and education,” said Josef Winter, Technology Officer, Siemens Energy Management, ASEAN.
CEO of PT Siemens Indonesia during his keynote speech. The forum was concluded with a keynote speech by the
The first discussion forum featured keynote speaker Director General of Electricity, Indonesia Ministry of Energy
from the Board Member of Indonesia’s National Energy and Mineral Resources, Andy N. Sommeng.
Board – Dr. Tumiran. The discussion was moderated by Approximately 150 forum participants also had the
Heru Dewanto, Secretary General of Indonesia Electrical opportunity to visit the Siemens manufacturing and
Power Society (MKI) who focuses on the future of Power service facilities in Jakarta and Cilegon on May 4.
Sector in overcoming challenges in Emission, Capacity
Development, Cost Effective, Reliability, Local Content,
and Project Management. Speakers among the IPP and
08 SOROTAN EDITION 2 / 2017Member Updates
Siemens takes part in ISCF 2017,
offers mobility solutions
Siemens’ mass rapid transportation to use mass transportation facilities. The key to meeting
these criteria is optimum line utilization through railway
concept can reduce congestion automation. As a leading provider of reliable technology,
problems in big cities in Indonesia, Siemens is offering solution in rail-based transportation
with automatic train control systems, signaling, as well
reduce economic costs and drive as interlockings,” stated Helman Trisakti, Head of Mobility
economic growth Division of PT Siemens Indonesia.
Efficient transport can attract economic activity to
cities, and boost productivity by improving connectivity
and reducing time lost to travel. Better transport can
T
aking part in the Indonesia Smart City Forum (ISCF) also improve quality of life. Making a city more attractive
2017, held in Makassar on May 22-23, Siemens to live in helps provide business opportunities and fuels
Indonesia offers integrated mobility solutions to economic growth. “We can learn from Singapore on how
help Indonesian cities reduce economic costs and drive they develop integrated mass transportation in order to
economic growth. Siemens is taking part in this two-day make urban area more connected, integrated, and livable”,
summit attended by 400 city leaders across Indonesia Helman added.
where the Government is launching its initiative called the For the traffic management system, it is very important
“Movement towards 100 Smart Cities in Indonesia”. to break down congestion in urban areas. Siemens offer
Along with the high population growth, the need solutions to operate its virtual traffic control system that
for mass transportation for residents in megapolitan can monitor current traffic flow or obtain information
cities is a major requirement. Sufficient and adequate regarding occupancy of parking garages. If needed, the
mass transportations are expected to alleviate traffic control system can also manage traffic by setting the light
congestion due to the large number of citizens using signals or dynamic street signs accordingly.
private vehicles. One of the mass transportations that With integrated urban arrangement through rail-
can address this need is rail-based transportation namely based public transportation and traffic management
mass rapid transit (MRT). system, Siemens strongly believes that in the future
“Speed, reliability, and convenience are the decisive Indonesia will have some of its cities become the world’s
factors for ensuring that urban communities are willing most livable cities.
SOROTAN EDITION 2 / 2017 09Member Updates
Mercedes-Benz wins Best Booth
Award at IIMS 2017
T
he Indonesia International Motor Show (IIMS)
2017 was a smooth success for Mercedes-Benz
Indonesia, garnering the German carmaker the “Best
Booth for Cars 1,000 – 1,500 sqm” Award at the event.
Held from April 27 to May 7, the IIMS 2017 again
brought positive result to Mercedes-Benz, becoming the
platform to showcase the carmaker’s committment to
provide the most comprehensive product portfolio in the
premium car segment to the Indonesian public. Some 19
models were on display on Mercedes-Benz’s show floor,
from elegant sedans to sporty coupes, from compact cars
to SUV and vans. The list of Mercedes-Benz on display
include the CLA-Class, C-Class and E -Class, S-Class and
S-Class Coupé, AMG GT-S, SLC-Class, Coupe C-Class,
GLS-Class, GLE-Class Coupé, GLC-Class and V-Class.
The Mercedes-Benz booth at the IIMS 2017 itself was
the result of a good teamwork and smooth logistics. The we’ve had more visitors than last year. We also thank the
booth was built over the course of five days by a team of support of those who have helped made the IIMS 2017
professionals supported by a dedicated designers. More a success,” said Roelof Lamberts, President and CEO of
than 3,600 minutes were spent to build the booth from Mercedes-Benz Distribution Indonesia.
the ground up. Furthermore, the booth was TUV certified, Mercedes-Benz also took home a number of other
ensuring that visitors and potential customer could enjoy awards. Its new V-Class won the Best of Large Van Diesel
the booth in complete luxury and comfort. award from Otomotif Group, while Daniella Pritha, one of
The 1,300 square meter booth was equipped with a the eight Mercedes-Benz Diva, wearing a a glamorous
Mercedes-Benz Cafe, Mercedes-Benz Financing Partners, outfit designed by Rinda Salmun, Patrick Owen and
Mercedes-Benz Collection, E-Corner – a special room for Sebastian Gunawan of fashion brand IKAT fame and
the E-class, media information, and an information service jewelry from Frank. & Co, won the 2nd Runner Up – Miss
called Proven Exclusivity and an aftersales section in Motor Show 2017
answering the demand of Mercedes-Benz customers. The IIMS 2017 itself received a very positive and
“We are very thrilled with what Mercedes-Benz has enthusiastic response from car enthusiasts in Indonesia.
been able to achieve at the Indonesia International More than 500,000 visitors came to the show this year.
Motors Show 2017. We offered something that’s different
compared to previous events. We are very proud because
10 SOROTAN EDITION 2 / 2017Member Updates
Mercedes-Benz
holds first in-house
exhibition in Indonesia
Hands over difable-friendly buses to local
public transport companies
O
n May 6, Mercedes-Benz held its first in-house
exhibition in Indonesia, which is coincidentally
the first single brand-car expo ever held in the
country. Held at the Indonesian Convention and Exhibition
Expo (ICE) at BSD City in Tangerang, Banten, the event
showcased 52 Mercedes-Benz vehicles of all types, from
commercial sedans to low and medium entry buses.
Sugihardjo, Secretary General at the Ministry of
Transport of the Republic of Indonesia, in his opening
speech, said the Indonesian government was highly
supportive of carmakers such as Mercedes-Benz, for
not only focusing on providing solutions for private
and public transport, but also for ensuring that such
transportation is safe.
Adopting the theme “One Stop Fleet Solution”,
Mercedes-Benz, as the main organizer of the event, not
only showcased their product range, but also hosted
its busines partners, including 13 official dealers of its
commercial cars as well as a number of parts suppliers.
Aside from being a showcase of Mercedes-Benz
product range, the event also saw the handing over of
a buses from Mercedes-Benz to the public transport
companies of PT Transportasi Jakarta (Transjakarta), PT
Mayasari Bakti and PO Lorena.
“We thank you, Transjakarta, Mayasari Bakti and
PO Lorena, for your trust and loyalty in again choosing
Mercedes-Benz buses in order to give your customers
the best service that you can offer,” said Ralf Kraemer,
Managing Director of Commercial Vehicle Mercedes-Benz
Indonesia, during the handing over ceremony.
Budi Kaliwono, Presidert Director of PT Transjakarta,
responded by saying that Mercedes-Benz buses were
equipped with difable-friendly technology, which suits his
company’s goal of providing even more transport options
for the difabled.
“We are preparing to supply a more difable friendly
armada. Mercedes-Benz buses has a special floor design
and a special air-suspension technology that allows the
bus to depress, making more accessible for the difabled to
take Transjakarta buses from the non-corridor lanes,” he
said, adding that as many as 150 Mercedes-Benz buses
can be seen driving through the some 12 to 15 Transjakarta
routes in the capital city of Jakarta by August 2017.
SOROTAN EDITION 2 / 2017 11Member Updates
Trumpf Technology Center officially
opens in Cikarang
T
rumpf Indonesia held the expressed his gratitude to customers, Mr. Ellerkmann. Trumpf is further
official grand opening of its partners and the employees of PT poised to increase its presence in
new Trumpf Technology Center Trumpf Indonesia for their faithful Indonesia, with Mr. Ellerkmann saying
in Cikarang on May 19. Sporting cooperation and outstanding that Trumpf was further looking into
a new building, a new showroom commitment. expanding to other major Indonesian
floor for its machineries, as well as As a guest of honor Mrs. Ute islands.
a larger space for future growth, Brockmann, Deputy Managing Director Philipus Arifin Basuki President
the new Trumpf Technology Center of EKONID, cordially congratulated the Director and CEO of PT Bina Widya
cements Trumpf’s committment to company on behalf of the Chamber Aksara, a sheet-metal product
its customers in Indonesia and in the for the continuous successful engineering and fabrication company,
Southeast Asian region. development of its business with and a local customer of Trumpf,
“Indonesia is one of our main prospects of EKONID’s further support expressed his appreciation for the
pillars of business here in Southeast for Trumpf’s future business activities new building and location.
Asia. After Thailand, it is now the in Indonesia. “It’s better than before,” Mr. Basuki
second strongest market in SEA.... Trumpf opened its Indonesian said. “I hope they can serve us better
And now we are over here, with all subsidiary in 2009 and was initially because support is number one for
the more we can offer, we expect big located at the German Centre in Bumi this kind of venture.”
increase of sales in the future,” said Serpong Damai in Tangerang, just
Mr. Joerg Ellerkmann, Managing outside of the country’s capital city
Director Asia Pacific of the Singapore- of Jakarta. Mr. Ellerkmann said this
located TRUMPF Pte Ltd. initial location was too far from most
The grand opening was done of its customer.
with a ribbon cutting ceremony and In this new location, aside from
a symbolic planting of a tree, which having a new showroom for its
conveys Trumpf’s committment to machines, customers could expect
having a sustainable and long-lasting faster service as the company would
presence in Indonesia. be expanding its capacity. Some
Accompanied by Trumpf Chief services to be expected, he said,
Representative Officer Mr. Stephen may include providing refurbished
Sidharta and Trumpf General Manager machines at lower costs, as well
Mr. Adrian Lim, Mr. Ellerkmann as on-site spare parts to be stored
welcomed the participants and in a new warehouse, according to
12 SOROTAN EDITION 2 / 2017Member Updates
VOITH celebrates
Systems (FRS), Mr. Martin Scherrer.
“If you just imagine, today, every piece of paper you’ve
had in your hand is made from a VOITH machine. When
150th anniversary
you just imagine from a locksmith to this global leader in
paper machinery, it’s a great, great achievement... We are
here for 150 years, and we have set certain standards, and
we want to do the right thing for the next 150 years,” Mr
Scherrer said.
Mr. Robert Kietaibl, Senior Vice President Sales VP FRS
V
oith, the German family-owned company that Asia Pacific, echoed the sentiment, saying that, “celebrating
focuses on the mechanical engineering sector, 150 years of Voith is celebrating our work, our contributions
is celebrating its 150th anniversary guided by the and the success of generations of Voithians. That is why it
motto, “Welcome to the next 150 years.” is a great pleasure to us to host our employee event”.
Throughout 2017, 19,000 employees at 160 global Voith is well known for making paper available as a
locations will be celebrating the event, with a ceremonial mass-market product for the first time. The first complete
act with guests from around the world at its headquarters paper machine was shipped as early as 1881. By 1899,
in Heidenheim in the summer. Concurrently, Voith will Voith was already delivering the first paper machine to the
support 150 charitable and social projects around the papermaking factory in Russia.
globe in commemoration of the event. The company’s innovative power and
“We are proud of our rich, successful history. But in internationalization continued into the 20th century, with
our anniversary year, we will primarily be looking to the groundbreaking innovations like the Voith Schneider
future,” says Voith CEO Hubert Lienhard. “Friedrich Voith Propeller (marine propulsion), the Kaplan turbine, and the
(Founder of Voith) saw the major opportunities in his hydrodynamic principle (Föttinger principle) for countless
time, and seized them decisively. We have preserved this applications in the field of short-distance public transport
entrepreneurial and pioneering spirit. We want to take a and in industry now considered industry standards.
decisive role in shaping the fourth industrial revolution in Today, the Voith technology group is active in five
the 21st century.” markets: Energy, Oil & Gas, Paper, Raw Materials, and
The celebration for VOITH Indonesia took place in May Transport & Automotive. With approximately 4,000 active
5, 2017, in its Indonesian plant in Karawang, West Java. patents, the company is the technological leader in many
The employee event for approximately 230 employees fields of industry.
was joined by Member of the Management Board of Voith
Paper and President of the Business Line Fabric and Roll
SOROTAN EDITION 2 / 2017 13Member Updates
BASF Indonesia
to be led by Daniel Loh as
new President Director
D
aniel Loh has been appointed
the President Director of BASF
Indonesia, effective April 27, 2017,
succeeding CP Chan who retired at the end
of February 2017.
Daniel started his career with BASF
in 2004. He has held key management
positions with the company since then,
with his most recent position as Managing
Director of BASF Malaysia and Head of the
Malaysia-Singapore Business Area. Prior
to Malaysia, Daniel has held operational
and business management positions in
Singapore and Thailand.
Daniel holds a Masters of Business
Administration from the Oklahoma
City University, USA and a Bachelor of
Engineering Degree from the National
University of Singapore.
“I am excited to have the opportunity
to work with the team in Indonesia to
further explore how BASF can leverage on
our innovation to help our customers to
capture the opportunities and potential in
Southeast Asia’s largest economy. BASF
has been present in Indonesia for more
than 40 years and it is an important market
for us in the region,” Mr. Loh said.
Having been present in Indonesia
since 1976, BASF products and solutions
today range from petrochemicals,
monomers, intermediates, dispersions
and resins, care chemicals, nutrition and
health, performance chemicals, catalysts,
construction chemicals, coatings and
performance materials to crop protection.
The head office for BASF Indonesia is
located in Jakarta, and BASF operates four
production sites, in Cengkareng, Cimanggis,
Cikarang and Merak. In 2016, BASF posted
sales of approximately 470 million euros to
customers in Indonesia and employed 662
employees as of end of the year.
14 SOROTAN EDITION 2 / 2017Member Updates
Dräger Indonesia Gala Dinner
D
räger Indonesia, the subsidiary of medical and
safety equipment manufacturer Drägerwerk AG,
which is based in Lübeck, Germany, celebrated
the moving of its office to a brand new location in Jl.
Simatupang, South Jakarta, with a Gala dinner attended
by Drägerwerk’s CEO and Chairman of the executive board,
Mr. Stefan Dräger, at the Gran Mahakam Hotel in Jakarta
on April 4, 2017.
Aside from Mr. Dräger and staff members of Dräger
Indonesia, the event was also attended by Mr. Hendrik
Barkeling, The Deputy Chief of Mission at the German
Embassy Jakarta, and Mr. Jan Rönnfeld, Managing testimonies from both Dräger’s employees and clients
Director of EKONID. Also in attendance were Dräger’s on the Dräger’s contribution in the field of medicine and
clients, representatives from the Ministry of Health of safety in the spirit of its slogan: “Technology for Life”.
the Republic of Indonesia, the Ministry of Defense of the In a separate interview, Patrick Simanjuntak, Managing
Republic of Indonesia, as well as other luminaries in the Director of Dräger Indonesia, reaffirmed Mr. Dräger’s
field of medical and safety equipment. words. “There’re always the three principles to our work.
Aside from the new office, the event was also held It’s how we can protect, support and save lives. And that’s
to commemorate over 20 years of Dräger’s existence always been the passion that drives Dräger. That’s what
in Indonesia and the myriad of life-saving technology it differentiates us from more other companies. It’s the
has brought into the country, as well as to celebrate the human aspect,” Mr. Simanjuntak said.
company’s participation in growing Indonesia’s economy As a background information, Dräger is a leading
and its contributions towards the medical sciences. international company in the fields of medical and safety
“We have been in Indonesia for over 20 years. Our goal technology. Founded in Lübeck in 1889, Dräger has grown
is to continue to be here and to contribute to the country’s into a worldwide, listed enterprise in its fifth generation as
development by introducing new technology and to a family-run business. Dräger in Indonesia is represented
transfer our knowledge to the Indonesian people,” said Mr. by two companies, PT Draeger Medical Indonesia, which
Stefan Dräger in his opening speech. specializes in medical equipment and PT Draegerindo
“Indonesia is an important part of the global economy Jaya, which specializes in safety equipment. The company
and we are fully committed to remain in the country. We employs over 70 people spread over office in Jakarta,
have a long-term strategy and we want to become a Balikpapan and Surabaya.
trusted partner to Indonesia. We thank the Indonesian
people, the Indonesian government and our Indonesian
clients for their acceptance. All of this would not have been
possible without your support,” he added in closing.
At the event, Dräger Indonesia also debuted and
launched a video profile of the company. It showed
16 SOROTAN EDITION 2 / 2017Member Updates
3,954 Indonesian youths joins Allianz
Football Junior Camp 2017
A
llianz Indonesia held its 6th tests to join the Asia Camp at this from all over Southeast Asia shared
Allianz Junior Football Camp year’s AJFC. this same opportunity and Allianz
(AJFC) in Jakarta recently. “Allianz Indonesia is proud to be has been consistent in supporting
As many as 3,954 young, talented able to support the youths of homeland the developments of our football
footballers signed up for the program in developing their potential, their talents while giving these youths the
for a chance to train in the “Asia character, and to promote a positive opportunity to be exposed to Bayern
Camp” in Bali and then onwards to social environment while improving Munich Football Club,” she added.
Munich for even more training at the their football skills in what they may
“Munich Camp”. regard as the experience of a lifetime,”
As many as 10 young footballers she said.
passed the first round of selection “As it is with the alumnae of this
held on July 8, 2017, from an early program in our country, AJFC alumnae
shortlisted list of some 350 teenagers.
These 10 individuals will be flying to
Bali to train in the Asia Camp from
July 31 to August 4.
The training program was designed
to promote interactions between the
players and to nurture the spirit of
teamwork and sportsmanship, as well
as trainings in cultural values in order
to further develop character among
the participants. The training would be
led by the coach of the Junior Bayern
Munich team. Two select participants
would then represent Indonesia to
train at the Munich Camp on August.
Karin Zulkarnaen, head of market
management at Allianz Indonesia
congratulated the youths who
succeeded in passing the preliminary
SOROTAN EDITION 2 / 2017 17Member Updates
The All-New Audi A5 Coupe
P
T Garuda Mataram Motor, a distributor of Audi in the signature Audi Virtual Cockpit, a digital, modern
Indonesia, has launched the brand’s latest model instrument panel that provides a comprehensive and
in Indonesia, the All New Audi A5 Coupe. The two- multi-purpose graphical control. The driver can easily
door, sophisticatedly designed car made its debut at the change the 12.3-inch digital screen on the dashboard in
Audi Booth in Hall D1-C at the Jakarta International Expo in two display modes: The classic configuration that displays
Kemayoran, Central Jakarta. the speedometer and the tachometer as the main highlight,
The Designers at Audi in Ingolstadt in the free state or the infotainment configuration that highlights a number
of Bavaria, Germany, as given the Audi a brand new look of information such as navigation tools. Other features
with the All New Audi A5 Coupe. An athletic and elegant include the Audi Smartphone Interface (Apple Car Play),
two-door vehicle, the 4.67 meters tall and 1.37 meter long 3 Zone Air Conditioning and an audio system courtesy of
car is supposedly the sportiest car of its class, featuring Bang & Olufsen.
an extended engine hood and a low ceiling line that flows As a sports car, the All New Audi A5 Coupe comes with
smoothly to the car’s low rear. 2.0 TFSI engine underneath the hood. The 2.0 liter machine
Audi’s signature wide and flat singleframe Grille is delivers 252 hp and a peak torgue of 370Nm. Along with an
combined with the straight LED on the wavy side of the car S-tronic 7-speed transmission and quattro permanent four
and a tough looking fender. The side rear-view mirrors are wheel system, the A5 Coupe can go from zero to 100km/
placed on the door’s shoulder, just like a racing a car, further hour in 6.5 seconds.
cementing the All New Audi A5 Coupe’s sporty visage. “The All New Audi A5 Coupe offers the best choices in
A recently developed driving system allows for a prices a sports car complete with the special kind of comfort that
and responsive driving ratio with clear feedback from the only Audi has. Audi’s innovative and progressive design, as
road’s surface. When turning a corner, the All New Audi A5 well as the latest technology shows our committment in
Coupe deliver a strong grip, thanks to the body rigidness offering the best products for Indonesian consumers,” said
of its previous generation, but still lighter compared to the Andrew Nasuri, CEO of PT Garuda Mataram Motor.
closest competitors in its class.
The result is an All New Audi A5 Coupe that deliver a
comfortable riding experience, which is also thanks to its
new suspension design that excels in long drives. The new
suspension system’s damper control allows drivers to
change the driving character from comfortable to dynamic
and sporty with a flip of a switch.
Interior wise, the All New Audi A5 Coupe features
18 SOROTAN EDITION 2 / 2017Master of Arts
in Communication
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www.lspr.edu/postgraduateprogrammeMember Updates
Bosch, Viar launches Electric
Motorcycle Viar Q1
T
he environmentally friendly, motorcyles needs 5 hour to charge Ignatius Karniman, President Director
practical and efficient electric to full, after which it would be able to of TM in Balai Kartini, Jakarta.
scooter (skutik) is in high travel to up to 70km with a speed of “The Viar Q1 is an innovative
demand in Indonesia, particularly 60km per hour. product from PT Triangle Motorindo
in major cities like Jakarta. In The E-scooter driving system which was developed together with
answering this demand, PT Triangle developed and applied by Bosch in Bosch and Gadjah Mada University
Motorindo (TM), the maker of Viar the Viar Q1 electric scooter system is (UGM) as the result of our committment
Indonesia, in cooperation with Bosch, made up of an electronic control unit and support to the Indonesian
has launched the electric scooter, Q1. (ECU) and an e-Motor. Furthermore, government. The availability of an
Aside from being designed to be as the Viar Q1 is a lightweight, weighing environmentall-friendly electric
practical as possible, buyers will also only 78.5kg, and sports tube-type, non scooter was also the result of a the
obtain their vehicle ownership license tubeless, 90/90 wheels. support of the Indonesian Ministry of
(STNK) immediately. PT TM guarantess aftersales Environment, the Indonesian Ministry
“Bosch, as a global technology services for the battery, dynamo and of Forestry and the National Power
and service supplier, has had its controller components of the scooter. Company (PLN),“ Kartiman added.
Bosch e-scooter driving system With a price tag of Rp 16.2 million (on
up and running since 1999, which the road), as many as 70 units have
is then relaunched in 2013, and is been sold. TM aims to sell 500 units
finally visible here in Indonesia via the per month.
Viar Q1,“ said Amine Kamel, Director “The Viar Q1 skutik is a form
Automotive Electronics at Bosch of our committment in supporting
Southeast Asia. the government, which is looking to
The Viar Q1 is equipped with a reduce pollution and to make fuel
maintenance-free, 60V, 20Ah Lithium usage more efficient. This vehicle
Ion battery that produces 800 watt further aims to assist the government
worth of power. The Viar Q1 also in reducing the impact of global
comes with a 220 input charger, warming, as mandated by Presidential
which emits 50Hz of power. The Decree Number 22, 2017,“ said
20 SOROTAN EDITION 2 / 2017SAVE THE DATE
01 - 03 November 2018,
Jakarta, Indonesia
The Asia-Pacific Conference of German Business (APK) is recognized as the
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w w w.a p k2 018 . c omOn the Spotlight
Budi Karya
Sumadi
Minister of Transportion
tackles questions on Indonesia’s growth trajectory at
The Indonesia Summit 2017 held by The Economist.
M
r. Sumadi, President Joko Widodo wants to develop And it’s not just for East Indonesia. For example, there is
Indonesia into a modern nation. He has set out a North Kalimantan. There is no industry there. No electricity
number of agendas to achieve this, key among which there. So we want to build electricity there. To make sure
is ensuring that development is done evenly across that industrilization can start there. For industries, (North
the archipelago, from the Western-most point in Sabang, Kalimantan) has very high potential.
Aceh, to the Eastern-most tip in Merauke, Papua. How would
you characterise this task as the Minister of Transportation? What sort of energy do you need? Do you need coal? Thermal
energy? What are you looking to use as you develop these
The word is difficult. Because if we go to Papua with the areas?
vessel, it takes one month. That’s one month back and forth.
It’s not easy. That’s why we have to change our mindset. On There are many alternatives. In North Kalimantan, for
the one hand, it is difficult. But on the other hand, it is very example, we have a huge river. We can use the water stream
potential. If we can make sure that the local economies grow, to generate electricity. For other places, we can also use
there is... it can give many potential for Indonesia. traditional sources such as LNG. We can combine it, Ship,
Port and Electricity. We have a sample of that in Bali, in
For example, we have in Papua, we have a huge land. We can Benoa. In the past, we use oil. But now, we bring LNG from
build develop it. We can develop rice (plantations), we can Kalimantan to Benoa. That model can be developed not just
create fisheries, so you see, there are many fields not just for in Benoa. We can also do that in Nusa Tenggara, Papua, and
Indonesia, but for exports to other countries. And now, with many places because the seaports are so busy. That means
the sea toll, we can already bring back to Jakarta all the fish we can combine seaport and electricity production.
in East Indonesia.
How do you plan to finance it?
The fisheries industry is one industry that is seeing a revival
of some sort. What other industries in Indonesia are you We need the private sector to join with us. We have many
looking to support? seaports. We have many airports. We have more than 1,000
airports. The government operates 50 airports. Now for the
Yes. Indeed, we have to build, for East Indonesia, start-up airport that can be managed by the private sector, we want
industries. We’re doing something like that in Morowali to propose a joint venture. Why? So we can make it more
(Central Sulawesi). We have in Maluku many industries there. professional. The money generated by that activity will
But we can build more like PT Freeport (in Papua), Nickel improve the remote areas the airport is located in. The same
mining and so on. Now, investors from China are being very goes with the seaports. We are already in discussion with
intensive in Morowali. Next year, Morowali may be number Pelindo I-IV to manage more than 20 seaports. That’s why
one in Asia for the export of stainless steel. we are also inviting investors who want to manage and also
22 SOROTAN EDITION 2 / 2017invest in those seaports. They’ll the manage the seaports, Kuala tanjung, we already have investors. Bitung is also very
airports, and, not only because we need the facility, but also potential and we really want to invite investors to manage
because we can then together look for where is the potential and invest in Bitung in North Sulawesi.
space for industry, agriculture and so on.
Tanjung Priok, I’ve been there. It’s very dense. How you can
Can a private investor really expect good return on managing expand it without disrupting current operations?
airport and seaports in remote areas?
Yes, for efficiency, we have been building intensively in
Yes, in that case, now we are in discussion about the Tanjung Priok. But at the same time, we are also building
Seaports in Java and Sumatra. For example, in the North of Patimban. Patimban and Priok are about 60 km apart. We
Sumatra, in Kuala Tanjung, the Port of Rotterdam has already want to manage the two ports in combination. For example,
come (to look for investment opportunities). From China, logistic will still be focused in Priok, but for car terminals
from Dubai, there are negotiations. It’s a beauty contest and maybe liquid goods, that’s for Patimban. We are still in
now. For Patimban (seaport), we are already in discussion discussion about this. And we still require the land. We plan
with Japan. And also, for airports, we still want to have a the 1st of 2019 for Patimban to be already in operation.
private involvement in Kualanamu, North Sumatra, and in
Balikpapan, East Kalimantan. I think this is one of the more For Priok, we hope, we plan, we are still developing that
feasible airports because the potential passengers there, it is seaport to be more intensive. Right now, Priok’s capacity
more than 5 million and that will make sure that the project is is only 6 million (TEUs). In the past, we haven’t had access
not only good to invest in, but also profitable. to the toll road. But last month (in February), the toll road is
already finished. Also, back then, no RORO. We have that now.
How successful will this infrastructure push really going to And also, we still want to make it that the pricing in priok to be
be? How feasible? Isn’t it always cost a lot of money, more cheaper. We’ll try to make it progressive. For the big vessels, it
money for people to move goods from A to B across a has to be cheaper compared to the small vessels.
large archipelago like Indonesia as opposed to Thailand or
Myanmar or Vietnam which has a contigious landmass with a Finally, what about the tourism industry? Indonesia feels like
long coastline? What are Indonesia‘s comparative advantage a well-kept secret. Why do you think that is? And how do you
for export oriented companies? plan to bring the numbers up.
Yes. On the one side, Thailand and Vietnam have the advantage Yes. On the one side, we try to make the connectivity especially
in the north. The vessels do go there. But Indonesia, we have for the airplanes, better. We make it so that Jakarta and
many people here, many places and many potential for Bali are not only for the locals but also for the international
industry and food. That’s why there are two considerations connectivity. In Jakarta, more than 80% is local (connectivity),
in terms of logistic. The first one, we want to manage Jakarta, international is 20%. We want to improve that. To make a sub-
Tanjung Priok, as an international hub. There is already a big hub. We give slots to international connectivity, to Jakarta and
consolidation with the RORO (Roll-On, Roll-Off) vessel. Before Bali. For example, there is discussion with the USA, Russia,
that, goods leave from South Sumatra, Central Java, East and with many middle-east countries, on having direct flights
Java, going to whereever. In response, we’ve tried to improve to Jakarta and Bali. We get as many countries as we can to
the RORO, and now we’re already getting good response. make more people to come to Indonesia.
Even the big vessel are now coming to Priok. (Vessels) with
more than 9,000 TEUs to make direct (shipping) to the USA The second thing is, if we look to the many islands (in
and Europe, from the port of Jakarta. Indonesia), we have many potential tourist destinations. We
have 10 destination that are very impressive. Currently, we
That condition is how we want to make it that there is are intensively developing three. One in North Sumatra, Toba
consolidation to cope with the intensive logistic condition in Lake. Second is Central Java, Yogyakarta, with Borobudur as
Jakarta. But for the future, and this is the second consideration, a central destination. The third is Mandalika in Lombok.
we have two places. And this is interesting for investors. One
is Kuala Tanjung (North Sumatra), and the second is in Bitung In Yogyakarta, we are building the new Airport, Kulonprogo.
(North Sulawesi). Kuala Tanjung is Northwest of Indonesia, Kulonprogo should be finished by 2019, and it will have a
while Bitung is Northeast Indonesia. Bitung needs Vietnam capacity of more than 20 million. In the north, in Toba Lake,
and Thailand to make the flow of vessel to be more efficient. We have already Kualanamu. For Kualanamu, we already
If you want to go to China or to the USA, you can use Bitung. invite investor to invest there. And we also built a small
And on the other side, if you want to go to the Middle East or airport, named Silangit. Before that, nobody wanted to go
Europe, you can go to Kuala Tanjung. there. But only in one month, now we have more than 5
flights directly to that place. This is the new effort from the
But honestly, right now, we are still developing Tanjung Priok government, to connect all the places in Indonesia and to
as a hub international. So maybe in two or three years, maybe attract people to go there.
we can see the other seaports for international use. For
SOROTAN EDITION 2 / 2017 23Cover Story
Countdown
to 35GW
Mike Neuber & Andra Wisnu
24 SOROTAN EDITION 2
4 / 2017
2015The power industry in Indonesia is a complicated one. Clashing regulations, mixed
signals on government policies, as well as infrastructural challenges make it difficult
for any power producer to enter the market. On the other hand, Indonesia cannot
afford to slow down its energy expansion plans if it wishes to maintain its growth
trajectory. In this edition’s cover story, we look at the state of Indonesia’s energy
industry and the progress it has made towards shifting to renewable energies.
I
ndonesia’s economy remains on According to the program plans, more
a growth path despite a slight than half of the cost is to be picked up
downturn in the past three years. by the private sector.
Declining demand for raw materials At the same time, the Ministry
and political re-arrangements have of Energy and Mineral Resource
reduced economic growth from (MoEMR) stresses the need for a total
nearly 6% in 2013 to just 5.02% in of $121.6 billion in investment costs
2016. On the other hand, increased to reach the energy mix planned by
investment in infrastructure and the 2025. This energy mix, as decreed by
growing interest of the private sector government regulation No. 79/2014
in the Indonesian market have kept on the national energy policy – also
economists relatively optimistic about known as KEN or Kebijakan Energi
the country’s accelerated growth in Nasional – set the target of increasing
the coming years. the share of New and Renewable
To ensure this growth, in mid 2015, Enegies (NRE) in the Indonesian
President Joko Widodo announced energy mix to 23% by 2025. The share
an additional 35,000 MW of electricity of renewable energies is divided into
generation capacities to be installed 9.8% bioenergy, 7.3% geothermal
between 2015 and 2019. Within the energy, 2.8% hydropower and 3.3%
framework of this 35,000 MW program, other renewable energy sources.
109 power plants are to be created by In addition to the aforementioned
2019. 74 plants with a total capacity target, KEN has further set binding
of around 25,000 MW are to be built targets for the share of NRE in the
jointly with the private sector in the national primary energy production
form of public-private partnerships to 31% by 2050. This way, the use
(PPPs). The remaining 35 projects with of NRE is to be optimally developed
a total capacity of around 10,000 MW and, at the same time, the supply of
fall within the sphere of responsibility isolated and remote regions within
of state-owned power company, PT the country is to be flanked by means
Perusahaan Listrik Negara (PLN). of sustainable energies.
To support the 35,000 MW target, an KEN is based on the assumption
additional 46,000 km of transmission that the electrification rate reaches
lines are also to be built by 2019. almost 100% by 2025. By then, the
If that plan sounds rather countrywide installed capacity should
ambitious, that’s because it is. be 115,000 MW, further growing to
Estimates of the investment costs for 430,000 MW by 2050. This means that
this mammoth program range from energy consumption per capita is set
about Rp 400 trillion (US$28 billion) to increase fivefold between 2013 (0.64
to Rp 1,127 trillion ($78 billion). Ton-of-Oil-Equivalent or TOE) and
SOROTAN EDITION 2 / 2017 25Cover Story
Objectives of the National Energy Policy (KEN) Power Plant: 430 GW
Energy Consumption: 3.2 TOE/cap
Electricity Consumption: 7,000 kWh/cap
Power Plant: 115 GW
Energy Consumption: 1.4 TOE/cap
Electricity Consumption: 2,500 kWh/cap
Electrification Ratio: near to 100%
Power Plant: 45.3 GW
Energy Consumption: 0.64 TOE/cap 2050
Electricity Consumption: 764 kWh/cap
Electrification Ratio: near to 100%
2025
Coal
25% NRE
Coal NRE 31%
3 30% 23% 1000
201 MTOE
400
MTOE Gas
NRE Crude
Gas 24%
8% Crude 20%
Coal 22%
25%
34%
164 Crude
MTOE 36%
Notes: 2013 excluded other petroleum product
Gas
22% Source: (Center for Energy Resources Development / Agency for the
Assessment and Application of Technology, 2015)
2050 (3.2 TOE). Concurrently, electricity as of 2016, the government’s generation is also growing. Exact
per capita consumption is expected to electrification program is important not
numbers vary widely, but according
increase tenfold. just to encourage local businesses and
to data from the International Energy
By means of KEN, the Indonesian thereby strengthen economic growth,Agency (IEA), the Total Primary Energy
leadership intends to ensure the but also to improve welfare across the
Supply (TPES) in Indonesia grew from
national security of energy supply by archipelago and to truly modernize the
165 Megatons of oil units equivalent
strengthening the use of local energy country. (Mtoe) to 209 Mtoe between 2002 and
sources and gradually reducing The government is supporting the
2011. This represents a total increase
imports of oil and gas. From this, 35,000 MW program with regulations in energy production of about 27%.
the prioritization of coal as the main aimed at speeding up the progress Published data from the IEA of 2013
energy carrier of the Indonesian of implementation. These include set the TPES at 213 Mtoe. According
“Energiewende” and the focus on regulations to facilitate the acquisition
to the MoEMR, the increase over the
the development of NRE are derived. of land by the country and to make same period was 42%, from about 1,070
These figures represent a tripling of price structures more attractive for
million barrels of oil equivalent (BOE) or
domestic consumption of coal from independent electricity producers, with
150 Mtoe to about 1,519 million BOE
52.5 to 179 million tonnes over the the current debate centered on whator 213 Mtoe respectively. According
period from 2013 to 2025, and an constitutes as the most attractive to the Indonesia Energy Outlook 2015
eleven-fold increase in the domestic and economically feasible plan for issued by the Agency for Assessment
consumption of NRE. In the long term, producers and consumers of electricity.
and Application of Technology (BPPT)
exports of coal and natural gas are to and the Center for Energy Resources
be gradually reduced and ultimately Energy Market Development Technology (PTPSE), the
completely discontinued. Indonesia’s dynamic economic primary energy generation was at just
With some 12,659 villages in development has led to a surge in under 200 Mtoe as of 2013.
Indonesia not supplied with electricity energy demand. As a result, energy It is nevertheless clear – despite
26 SOROTAN EDITION 2 / 2017ACCORDING TO THE INDONESIA Only Japan is currently importing
more oil than Indonesia. The report
Private producers are usually required
to sell electricity generated to the
ENERGY OUTLOOK 2016 also predicts that, from 2016, coal will state electricity company. Exceptions
ISSUED BY THE AGENCY FOR occupy the position of petroleum as the
most important energy source in the
are allowed for remote areas where
there is no access to the PLN network.
ASSESSMENT AND APPLICATION national energy mix. Fossil fuels and in Accepted contracts with PLN have a
OF TECHNOLOGY (BPPT) AND THE particular coal are only to be replaced duration of up to 30 years depending on
by alternative energy sources as the the resources and technologies used.
CENTER FOR ENERGY RESOURCES dominant energy suppliers in 2050. By In 2014, the country-wide electricity
DEVELOPMENT TECHNOLOGY then, the share of renewable energies consumption reached 199 TWh. As
should have increased by at least 12%. a result of slowed economic growth
(PTPSE), THE PRIMARY ENERGY This relatively small share is the result and higher electricity prices, electricity
GENERATION WAS AT JUST UNDER of a current strong focus on the rapid consumption in 2014 grew by only 6%
expansion of coal energy as the use of compared to 8% in the previous year.
200 MTOE AS OF 2013 renewable energy sources in Indonesia Overall, according to MoEMR, electricity
is usually still small and off grid. consumption increased by more
the widely differing data – that there is than 75% between 2005 and 2013.
a strong increase in energy production Electricity market PLN estimates an annual increase in
during the past years that is also Electricity production in 2014 was 228 electricity demand of at least 8.7%
occuring in parallel with the advancing terrawatt hours (TWh). Nearly 90% from 2015 - 2024. By 2030, electricity
economic development. In the future, of the electricity was produced using consumption is expected to triple from
the Indonesia Energy Outlook forecasts fossil fuels. The share of coal was current consumption.
an average annual growth of 5.7% and highest with 52.8%, followed by gas The growth in electricity
an increase of the TPES by more than with 24.2% and diesel or oil-based fuel consumption is mainly due to a
six times by 2050. The primary energy with 11.7%. Particularly in rural areas continuously growing demand from
generation should then amount to more and on peripheral islands, electricity is private households. Continued
than 1,300 Mtoe. mainly supplied from diesel generators. economic growth and a concomitant
As of 2013, primary energy According to the MoEMR, 800,000 improvement in the living conditions of
generation consisted of more than barrels of oil are imported daily in many Indonesians led to an increase of
90% of fossil fuels. Oil dominated Indonesia. NRE contributed about 90% between 2005 and 2013. In 2014,
the composition of primary energy 11% to electricity generation. As data private households accounted for about
generation with 36%, followed by from the MoEMR shows, the use of 43% of total electricity consumption.
coal with 34% and gas with 23%. The hydropower and geothermal energy The remainder was distributed among
remaining primary energy generation has been most advanced within the industry (33%), commerce (18%) and the
of 8% comes from NRE. Since 2003, generation of electricity, among other public sector (6%). It is to be expected
renewable energies in Indonesia have NREs. The share of biomass, solar and that the intensified industrialization of
been categorized into commercially wind power is still negligible and their the archipelago will also significantly
developed (geothermal, hydroelectric use is mostly off grid. increase the electricity consumption
and bioenergy) and partially At the end of 2014, the installed of the industrial sector. At the same
developed (solar energy and wind power capacity of the country was time, demand for private households
power) technologies. 53,585 MW. In 2015, NRE accounted will continue to rise with a renewed
Indonesia has substantial reserves for about 11,000 MW. The area of upswing in the economy.
of fossil fuels. According to Indonesia power generation is dominated by The electrification rate has been
Energy Outlook 2016, while maintaining PLN. In 2014, 70% (37,300 MW) of significantly increased in the recent
the current production capacity, the installed capacity came from past. In the period from 2010 to
and assuming no other reserves are PLN. The contribution of independent the end of 2014, according to PLN,
discovered, the country’s oil reserves is Power Producers (IPP) amounted to electricity consumption rose by a
expected to run out in 12 years, while about 20% or 11,000 MW, while power total of 16.6 percentage points to
the range of coal and gas is expected generators for Private Power Utilities 84.3%. The latest figures (2016) from
to be 70 and 37 years, respectively. In (PPUs) and other power generators the MoEMR speak of about 87% of
fact, in 2014, Indonesia was the largest with an operating license for non- electrification in the country. The data
exporter of coal with 409,000 tonnes. diesel plants each contributed about includes both consumers connected
And with 34 billion cubic meter in gas 2,600 MW to the installed capacity. to the PLN network and private power
exports, the country is listed among Electricity generation has been open utilities. Measured by the population
the “top ten” of the worlds largest gas to private electricity producers since of more than 250 million however,
exporters. the 1980s. Having said that, electricity this still means that some 40 million
On the other hand, since 2004, transmission and distribution are Indonesians still have no access
Indonesia has been a net oil importer. largely subject to a PLN monopoly. to electricity. The comparison with
SOROTAN EDITION 2 / 2017 27You can also read
