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China, UAE to Invest in Indonesia’s Renewable Energy: Reports

October 20, 2010

Indonesia’s push to promote Foreign Direct Investment into it’s renewable energy power generation infrastructure received further support this week with separate announcements that both the United Arab Emirates and China will seek to invest into the sector.

The announcement about the UAE’s intentions took place in Jakarta, while the announcement about China’s investment intentions was made at the sidelines of an ASEAN/China summit in China.

Indonesia’s efforts have included the establishment of particularly attractive investment regimes for geothermal power, as well as small hydro power. 

Indonesia has a renewable energy target of 17.5% by 2025.  Already the third largest global consumer of geothermal electricity – and with much left unexploited – and close to 95% of it’s 75GW hydropower resources unexploited, and now with an amenable investment regime, Indonesia is positioned to become a global leader in renewable electricity generation.

International companies have so far been focussing on geothermal opportunities, and large hydropower.  There remains a large potential also for attractive small hydro projects, for which there is a favourable and streamlined tariff and regulatory regime.

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