EMIS Emerging Market Information Service Indonesia Power Sector | Page 4

Overview
Indonesia has a wide variety of energy sources, including fossil and non-fossil resources. The country has been a net energy exporter
for many years. The government has created a program for the development of the sector until 2025. The power generation sector is
dominated by Perusahaan Listrik Negara which controls around 86% (or 26,609 GW) of the country’s power generation assets. Until
2012, the total of installed capacity is 41,098 MW, transmission line: 37,301 kms and distribution line: 679,424. 75% of the territory of
Java and Bali is covered by an electric grid, which makes these two areas the most developed in this respect. Second is Western
Indonesia with 68% and third is East Indonesia with 59%. The market for generation, transmission and distribution of electricity has
seen an average growth of 16% per year. In 2011 the total market size reached IDR 124.7 tr.
Production
The biggest electricity producer is the state company Perusahaan Listrik Negara (PLN), followed by the independent producers (the so
called IPP's). In 2011, power production by Hydro was 10,524,610 MWh, Geothermal– 3,557,540 MWh, Steam - 73,823,060 MWh,
Steam Gas - 34,568,510 MWh. Indonesia is the fourth biggest coal producer in the world and the third biggest producer of geothermal
energy. Despite the abundance of resources suitable for electricity generation, the production capacity of Indonesia comes mainly from
coal and oil. Domestic consumption of petroleum products is heavily subsidized and this promotes the development of electricity
generation based on diesel fuel and other petroleum-based fuels.
Prices
Indonesia is one of the few countries in the world that offer different prices for electricity for different users. In 2009 the Energy Law No.
30 was introduced, whereby the state obliges the distribution companies to offer customers electrical energy for domestic use at
affordable prices. Commercial and industrial electricity users pay an average 11-12 US cents per kWh while retail customers pay
approximately 6 US cents per kWh . For now the government has no plans to change the law.

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